Georgia Power Seeks Approval for Major Energy Expansion

News Summary

Georgia Power is pursuing approval to add nearly 10 gigawatts of energy to the grid, primarily to meet demand from large data centers. This effort raises concerns about potential increased electricity bills for residential customers, as the utility has raised prices multiple times. Public advocates worry about overbuilding infrastructure and its financial impacts. Additionally, there are environmental concerns linked to the substantial water consumption of data centers. The Public Service Commission is set to discuss the utility’s request amid these challenges.

Atlanta, GA – Georgia Power is seeking approval from state regulators to add nearly 10 gigawatts of energy to the grid, which is enough to power the entire metro Atlanta area. This initiative is primarily aimed at meeting the anticipated energy demand from large data centers, which are expected to account for roughly 80% of the proposed new energy demand.

However, public advocates express concern that this expansion could lead to increased electricity bills for residential customers. Since 2022, Georgia Power has raised its prices six times, although the Public Service Commission (PSC) has approved a rate freeze that will last until 2028. Recent bill increases have sparked concerns among customers, such as Harriet Reddan, whose monthly bill rose from about $100 to $140 within the past year, raising questions about affordability.

Jennifer Whitfield, a senior attorney with the Southern Environmental Law Center, highlighted the uncertainty surrounding which data centers will actually establish operations in Georgia. There is a potential risk that overbuilding infrastructure could lead to financial strain on existing customers, especially if anticipated data centers do not materialize. If all the expected data centers come to fruition, bills could remain stable; however, failure to attract these centers could mean that existing customers bear the cost.

A spokesperson for Georgia Power indicated that it is premature to determine whether a price increase will be sought once the rate freeze ends. The PSC is scheduled to hold a hearing at 9:30 a.m. on Tuesday to discuss Georgia Power’s request.

In addition to the financial implications, concerns have been raised about the environmental impact of data centers and their substantial water consumption required for cooling. Currently, Georgia is home to nearly 100 operating data centers, but any new proposals for larger facilities requiring over 100 megawatts of energy are subject to scrutiny.

Georgia Power’s initiative comes amid projections indicating that data centers will consume about 90% of all new energy generated by 2031. The PSC has already approved a plan allowing Georgia Power to pursue additional capacity while requiring that data centers cover their electricity costs, including potential upfront collateral.

Clean energy advocates are concerned that overestimating demand for energy could shift costs to residential ratepayers and create an undue reliance on fossil fuel sources. Critics are alarmed at the long-term energy plans, suggesting they may lead to higher bills without providing relief to existing customers.

The PSC’s approval of Georgia Power’s integrated resource plan has included commitments to develop up to 4,000 megawatts of renewable resources by 2035, coupled with improved energy efficiency goals. As the utility moves forward with its plans, the balance between accommodating the growing demand from data centers and managing costs for consumers remains a critical issue.

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