Phenix Power Plant to Retire, Marking Shift to Cleaner Energy
Locales: Alabama, UNITED STATES

Phenix City, Alabama - February 20th, 2026 - Alabama Power today confirmed plans for the phased retirement of its Phenix Power Plant, a facility that has served as a critical component of the state's energy infrastructure for decades. The decision, announced earlier this week, reflects a broader industry trend towards cleaner energy sources and decreasing overall energy demand. While the closure will undoubtedly impact the local workforce and the Phenix-Creek community, Alabama Power is framing the move as an opportunity for economic diversification and investment.
The Phenix plant, initially commissioned in the mid-20th century, currently employs 344 people directly, with an additional 292 contractors bringing the total workforce to 636. The company anticipates beginning the decommissioning process in 2025 with the retirement of three coal-fired generating units. Complete shutdown and decommissioning are slated for 2029, marking the end of an era for the plant and the surrounding area.
"The Phenix plant has been a vital part of Alabama Power's generation mix and a cornerstone of the Phenix-Creek community for decades," stated Mark Berry, CEO of Alabama Power, in a press conference earlier today. "However, changing energy demands and the growing availability of renewable energy sources require us to adapt and modernize our generation portfolio. This isn't simply about retiring an old plant; it's about proactively building a sustainable energy future for Alabama."
The shift towards renewables isn't a new development. Alabama, like many states, has seen a significant increase in solar and wind energy capacity over the past several years. Decreasing costs for these technologies, coupled with increased public and governmental support, have made them increasingly competitive with traditional fossil fuel sources. A recent report from the U.S. Energy Information Administration [ https://www.eia.gov/ ] highlighted a national trend of coal plant retirements, citing economic factors and environmental regulations as key drivers. Alabama Power's decision aligns with this larger national movement.
However, the impact on the Phenix-Creek community is a significant concern. The loss of 636 jobs will undoubtedly create hardship for many families. Alabama Power acknowledges this challenge and has pledged a $230 million investment in the community to mitigate the negative effects and foster new opportunities. This investment will be allocated across three key areas: workforce development, economic development, and community enrichment programs.
Workforce development initiatives will focus on retraining programs for displaced workers, equipping them with the skills needed to succeed in emerging industries, particularly within the renewable energy sector. Alabama Power is partnering with local vocational schools and community colleges to create tailored training programs, focusing on solar panel installation and maintenance, wind turbine technology, and other green energy fields. The company aims to prioritize transitioning existing employees into these new roles wherever possible.
Economic development efforts will concentrate on attracting new businesses and industries to the Phenix-Creek area. The company is actively exploring the possibility of transforming the Phenix plant site into a business and industrial park, providing space for companies involved in advanced manufacturing, technology, and other growth sectors. This redevelopment is intended to create new jobs and diversify the local economy, reducing its reliance on the power plant. Initial talks are underway with several companies specializing in battery storage and electric vehicle component manufacturing, potentially positioning the region as a hub for the burgeoning clean energy industry.
Community enrichment programs will focus on improving the quality of life for residents, supporting local schools and healthcare facilities, and investing in infrastructure improvements. This includes funding for parks, recreation centers, and community centers, as well as grants for local non-profit organizations. Alabama Power is also collaborating with community leaders to identify and address specific needs and priorities.
While the closure of the Phenix plant represents a loss for the community, Alabama Power's commitment to a significant reinvestment offers a glimmer of hope. The success of this transition will depend on effective collaboration between the company, local government, and the community itself. The next few years will be critical as Phenix-Creek navigates this period of change and strives to build a sustainable and prosperous future.
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[ https://www.yahoo.com/news/articles/alabama-power-close-busy-phenix-222709596.html ]