(The Center Square) – The Georgia Public Service Commission will vote Friday on an agreement with Georgia Power that would increase the utility’s energy capacity, but some are raising questions.
Georgia Power announced the plan Dec. 10, saying it would ensure that $556 million in annual revenue from large load customers when the company makes its next rate case in 2028. The revenue would put downward pressure of at least $8.50 a month for the typical residential customer, the utility said in a news release.
“This stipulated agreement helps ensure we leverage Georgia’s growth in a way that lowers costs for customers,” said Kim Greene, chairman, president and CEO of Georgia Power. “Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians.”
The utility announced the deal after a report from the Public Service Commission’s staff indicated that a typical residential customer could see a $20 increase in their bill if the commission approved the additional 9,886 megawatts needed for larger load customers, such as data centers.
“Nonlarge load customers could experience significant harm if the Company were to commit to acquire the resources, and the new load and additional incremental revenues do not materialize,” the commission’s staff said in its report.
The announcement was praised by Gov. Brian Kemp on social media, but the agreement is getting pushback from some.
“It is a misrepresentation when Georgia Power says that larger users like data centers are paying more when, in actuality, these larger users are causing the new investments that will increase rates for families and businesses,” said Dr. Stephen Smith, executive director of the Southern Alliance for Clean Energy. “It also remains speculative whether that large-load demand will even materialize or stick around.”
Georgia Interfaith Power and Light and the Southface Institution questioned the utility’s statement about “downward pressure” on rates in a Wednesday filing. The organization asked the commission to question Georgia Power further about its proposal, including the projected revenues from large loads.
“In fact, without more information, the Stipulation’s apparent promise tells us little meaningful information about the ultimate bill impacts that Georgia Power expects to result from the costs of the certification resources,” the filing said. “The $8.50 downward pressure promise says merely that for three years ‘large loads’ will bring in more money than their (undefined) costs, causing general relief across the system for other (undefined) costs not attributed to the large loads in the first instance.”
The vote will be the last for Commissioners Tim Echols and Fitz Johnson, both Republicans, who lost their seats to Democrats Alicia Johnson and Peter Hubbard in November. Echols was first elected in 2010. Johnson was appointed by Kemp in 2021.
Johnson and Hubbard begin their tenure Jan. 1.
The vote is scheduled for 9:30 a.m. Friday.
