Georgia Power is facing scrutiny as the Georgia Public Service Commission (PSC) considers major changes to its energy infrastructure. Recent testimony indicates potential rate increases for customers amid a proposed expansion to support a growing number of data centers.
Potential Rate Increases for Georgia Power Customers
Analysts from the PSC have warned that residential customers might experience monthly bill increases of $20 or more. This change is linked to Georgia Power’s ambitious plan to expand its energy generation capacity by adding 10,000 megawatts over the next five years. Such an expansion is intended to accommodate an influx of data centers that require significant power resources.
Commission’s Recommendation
In their testimony, PSC staff recommended that the commission only approve a portion of the proposed power plants and storage systems. Currently, only a small fraction of the proposed construction is supported by signed contracts, raising concerns about the financial implications for consumers.
- Key details of the proposed expansion:
- Total proposed increase: 10,000 megawatts
- Comparison: Each of the four nuclear reactors at Plant Vogtle generates about 1,100 megawatts
The PSC is scheduled to vote on the approval of these initiatives on December 19, just before two newly elected commissioners take office. It is projected that if approved, customers may not see an increase related to these expansions until 2029.
Risks of Overbuilding
Experts have raised alarms about the risks associated with Georgia Power’s projected demand forecasts. There have been instances where data center operators have canceled contracts or opted for other states, presenting a risk of overcapacity. PSC analysts highlighted that previous forecasts for electricity demand have often been overly optimistic, resulting in risks for consumers.
Georgia Power’s Position
Georgia Power maintains that the current demand for electricity is robust. They reference a growing list of large customers who have committed to receiving service, accounting for 11,000 megawatts of demand. A spokesperson for the utility asserted confidence in their load forecasts, which include both large customer commitments and anticipated organic growth.
Environmental and Financial Concerns
Environmental advocates have criticized Georgia Power’s reliance on gas-fired power plants amid concerns about sustainability. Additionally, PSC staff caution that the expansion could lead to cost overruns and delays, reminiscent of the issues faced during the long-running Plant Vogtle nuclear expansion.
- Concerns identified by PSC staff:
- Increased costs for gas-fired power projects
- Possible delays due to untested contractors
- Substantial economic impact of overbuilding
Commissioners have been advised to approve approximately 3,100 megawatts immediately, while applying conditions to another 4,200 megawatts. The remaining 2,400 megawatts—deemed the most costly—should not be greenlit, according to PSC staff.
As Georgia Power seeks to manage the challenges presented by the data center expansion, the PSC’s ultimate decision will impact energy rates for consumers across the state. Stakeholders will be closely monitoring developments leading up to the vote.
