March 2, 2026 - Alabama Power, the largest utility in the state, will spend $259 million on its coal ash in 2026, according to records from the Alabama Public Service Commission.

For the coal ash pond at Barry Electric Generating Plant alone, Alabama Power projects to spend nearly $91 million in 2026.

But the utility will also earn nearly $11 million in ash sales in 2026, it projects.

In December, Alabama Power submitted to the public service commission its projected costs for complying with environmental regulations, including coal ash disposal, smokestack scrubbers, and sewage treatment. These projections play a key role in determining Alabama Power’s CNP (Rate Certificated New Plant), a rate applied to power bills to recoup some costs.

Under the typical Alabama Power family rate structure, a residential customer pays about $0.028 per kilowatt hour for environmental compliance.

Coal ash, what remains of coal after it has been burned for energy, is a major environmental concern in the state. Historically, it was stored in large ponds after being sluiced—saturated with water and then piped—from the power plant.

Ash is expected to cost Alabama Power billions to clean up: In 2020, the utility estimated coal ash closure costs to be $3.3 billion.

For all of its other environmental compliance expenses in 2026, Alabama Power projects paying $115 million. That’s less than half of what it expects to pay for coal ash this year alone.

Alabama Power has coal ash ponds at six plants: Barry north of Mobile, Gadsden, Gorgas, Greene County, and Miller and Gaston in the Birmingham metro area. In its projections, the utility estimated what capital expenditures will be needed for each pond, as well as the cost to close each pond, each year from 2026 through 2030.

Coal ash costs at Barry are the highest in 2026. Alabama Power estimates that it will spend $1.1 million on expenditures for the Barry pond, and $89.5 million on closure costs. The Barry ash pond contains an estimated 22 million cubic yards of coal ash.

From 2026 to 2030, the utility estimates that it will spend almost $433 million on coal ash costs at Plant Barry, the highest amount of its ponds in the state.

How to close the Barry coal ash pond, which sits along the Mobile River, has been debated for the last several years. In 2022, Mobile Baykeeper sued Alabama Power, arguing that its plan to cap the pond in place, leaving the ash and covering it with an earthen “cap,” is not sufficient to minimize the risk to the Mobile-Tensaw River Delta. The case is pending in federal court.

Coal ash contains heavy metals like arsenic and cadmium. In November, David Bronner, chief of the Retirement Systems of Alabama, implored leaders to address the coal ash pond, arguing that if there were a spill, it would ruin Mobile Bay for decades.

“We do not need finger-pointing; we need to, jointly, with Alabama Power, our Washington team, and our state team, unite and start the long process to solve this huge environmental bomb NOW, NOT IGNORE IT until Mother Nature decides to let it bust loose and damage Mobile Bay, affecting not just Mobile Bay but the entire state,” Bronner wrote in a November newsletter.

Alabama Power argues their plan to leave the coal ash in place not only meets federal and state guidelines but is significantly less expensive. In court filings, the utility said the state estimates removing the coal ash—the plan favored by environmental groups—would add $4 billion in closure costs and take between 20 and 25 years.

But while it remains a significant cost burden, Alabama Power is able to generate some revenue from coal ash. In its projections, the company expects to earn $10.8 million in ash sales in 2026. Alabama Power also projects it will earn $1.3 million by selling gypsum, another byproduct of burning coal, this year.

Alyson Tucker, a spokesperson for Alabama Power, said the utility recycles 95% of the ash and gypsum that is produced from current electricity generation. Coal ash and gypsum can be used in many construction materials, like concrete, drywall, and roofing shingles.

“We will continue to pursue opportunities to the extent the market will allow, facilitating beneficial reuse of ash and gypsum in products like concrete and wall board,” Tucker said in an email.

The utility says it is able to sell some of the coal ash stored in ponds “at select sites.” In 2024, Alabama Power announced a partnership with Eco Material Technologies to recycle “almost all” of the coal ash at Plant Barry. Eco Material Technologies will operate a plant onsite to recycle the coal ash into cement. Construction is expected to be completed later this year.