In 1984, the Alabama Legislature enacted a statute establishing boundaries for electric service territories within the state. ALA. CODE § 37-14-1 (1975). Based on an investigation conducted by the Legislature, Alabama determined that, with respect to retail electric sales, the benefit of competition between multiple entities is outweighed by the cost that would be passed on to the customer for maintaining multiple or duplicate facilities. As a result of the investigation, Alabama declared that its policy is to ensure “effective, economical and orderly supply of electric service at retail to customers in the state and to avoid unnecessary duplication of facilities by electric suppliers for the furnishing of such services which would result in waste and in degradation of the environment.”
As a result, it became necessary to develop a set of maps depicting the respective boundaries for each electric service entity.