Georgia Power and the Public Service Commission’s staff unveiled a deal Wednesday that would allow the utility to add about 10,000 megawatts of power supplies in just five years, an unprecedented expansion that’s mostly to serve data centers.
The agreement, known as a stipulation, is not final. It still must be approved by the five members of the PSC. But in other cases where a stipulation was reached, the commission has stuck closely to the agreement, so the deal is a preview of what the PSC is likely to approve.
The deal calls for all 9,885 megawatts of new power plants and other generation resources Georgia Power was seeking to be “certified,” a key step that would allow the company to start construction and paves the way to charge customers down the road. The overall expansion is more than double the combined generating capacity of the four nuclear reactors at Plant Vogtle near Augusta.
Most new electricity supplies the utility wants to build itself or buy from other power plants would rely on burning gas, which produces potent greenhouse gases that are warming the planet. The rest would come from battery storage systems and some solar.
Credit: TNS
Credit: TNS
Nearly all the new power generation muscle is needed to serve data centers, the energy-intensive computing warehouses springing up across Georgia to serve artificial intelligence and other digital products.
In a filing with the federal Securities and Exchange Commission, Georgia Power estimated the new power resources it would be allowed to build would cost at least $16 billion in capital investment. That does not include power the company would purchase from third parties or other related costs, so the plan’s ultimate price tag could be significantly higher.
In testimony filed before the hearings, PSC staff had warned residential customers could eventually see monthly bills jump $20 or more if the utility’s full expansion were approved. Staff had recommended the commission sign off on only about a third of the new power supplies, at least for now. The rest, they said, were “speculative” and risky investments for customers.
Under the stipulated agreement, Georgia Power has pledged to use extra revenue from data centers to keep other customers’ rates in check.
In return for the endorsement of its fleet expansion, Georgia Power agreed to structure its next rate adjustment — slated to be proposed in 2028 — to put at least $8.50 in “downward pressure” on residential customers’ monthly bills.
It’s far from guaranteed customers’ bills will shrink that much, if at all. “Downward pressure” is not the same as a rate cut and many residential customers use more electricity each month than the 1,000 kilowatt-hours used to estimate bill impacts.
Any rate increases or decreases resulting from the agreement won’t be felt until 2029.
In a statement, Georgia Power CEO Kim Greene said the agreement will mean “more money stays in your pocket while we power Georgia’s future.”
“Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians,” Greene added.
The deal was announced just 90 minutes before hearings on the company’s plan were set to start Wednesday and was met with surprise at the PSC’s downtown headquarters. The hearings this week are the last chance for parties to argue for and against the deal before the commission votes on Dec. 19.
The hearings themselves, which could last through Friday, got off to a rocky start Wednesday.
As PSC Chairman Jason Shaw tried to kick off the proceedings, he was drowned out by a group of environmental and consumer advocates that stood in front of the dais chanting things like “Power to the people, not Georgia Power.” Several protesters were forced out of the hearing room by police, but it was not immediately clear if any were placed under arrest.
Editor’s note: This story will be updated with additional details and comments.
A note of disclosure
This coverage is supported by a partnership with Green South Foundation and Journalism Funding Partners. You can learn more and support our climate reporting by donating at AJC.com/donate/climate.
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