The Legal Division and Electricity Policy Division Jointly Recommend:
· After extensive review of all of the prefiled testimony, the discovery produced by the parties, the transcript of the hearing and the post hearing briefs in the form of proposed orders, the staff has determined that Alabama Power Company has demonstrated a need for additional capacity and presented evidence demonstrating that certain resources proposed by the Company represent a reasonable means by which the Company can meet this need in a reliable and economic manner.
· Accordingly, the Staff recommends the issuance of a certificate of convenience and necessity for:
1. the construction of a new combined cycle unit at the site of Alabama Power Company’s Barry Steam Plant (“Barry Unit 8”);
2. the acquisition of the Central Alabama Generating Station (“Central Alabama”) located in Autauga County;
3. a Power Purchase Agreement (PPA) for the output of the Hog Bayou Energy Center located in Mobile County;
4. the authority to pursue up to 200 MW of demand-side management and distributed energy resource programs.
· The Staff further recommends that the cost of Barry Unit 8 subject to CNP Part A and Rate RSE shall be capped at no more than 5% above the proposed contract price.