Ala. Code § 11-50-1: Establishment, Purchase, Etc., of Waterworks, Gas or Electric Plants by Municipalities Generally; Contracts for Furnishing of Water, Gas, or Electricity; Regulation of Gas, Electricity, and Water Rates and Quality.

Cities and towns shall have the right to establish, purchase, maintain, and operate waterworks or contract for a supply of wholesome water for their inhabitants; to establish, purchase, maintain, and operate a gas or electric light works and to contract for the furnishing of gas or electricity to the city or town and surrounding territory; to regulate the manner and rates for furnishing gas, electricity, and water after expiration of a contract; and to prescribe the quality of gas or electricity furnished to the inhabitants by any person or corporation.