Georgia Power defends proposal for data centers, says $20 monthly increase ‘flatly incorrect’
ATLANTA, Ga. (Atlanta News First) — On Wednesday, Georgia Power filed new testimony defending its proposal to add roughly 10,000 megawatts of energy to help run data centers statewide.
For context, energy experts say 10,000 megawatts can power roughly nine million homes.
The move would have to be approved by the five-member Georgia Public Service Commission. Earlier this month, an advisory body cautioned the commission saying the cost of this massive energy boost could fall to Georgia Power customers to the tune of a $20 a month bump in utility bills.
“Non-large load customers could experience significant harm if (Georgia Power) were to commit to acquire the resources, and the new load and additional incremental revenues do not materialize,” wrote Tom Newsome, Philip Hayet, and Leah Wellborn, in testimony on behalf of Georgia Public Service Commission Public Interest Advocacy (PIA) staff.
Georgia Power refuted this assessment in new testimony filed on Wednesday, the final day Georgia Power had to file rebuttal testimony surrounding its energy proposal.
“This is flatly incorrect, and staff’s testimony provides no rationale for why the company would deviate from its current marginal pricing approach,” wrote Kristin W. Curylo, Jeffrey R. Grubb, Brandon Looney, and Francisco Valle, in rebuttal testimony in support of Georgia Power company’s application.
RELATED: Commission weighs massive boost to Georgia Power to accommodate data centers
“Commission approval of this request will not change residential customers’ rates and existing customers will not pay for the costs associate with serving new large load customers because those new large load customers are covering the incremental costs to serve them.”
The authors of the rebuttal testimony said the PIA staff did not account for revenues from data centers that would “offset the costs of the additional resources.”
In the meantime, Georgia Power has frozen any rate hikes for a three-year period, running through 2028.
The PSC Public Interest Advocacy Staff recommended the PSC to reject Georgia Power’s proposal and instead approve the acquisition of 3,125 MW of resources and conditionally certify another 4,298 MWs.
On Wednesday, Georgia Power countered saying the full ask should be delivered. The company said it had the commitment of data centers planning or under development in Georgia, with 7,900 MW under contract.
“The company needs every resource it requested in this case to meet the energy and capacity needs of its customers to support load growth that benefits all customers,” according to the testimony.
RELATED: Georgia Power will freeze base rates for at least 3 years
Georgia Power has more than 73 data centers currently, according to the testimony, and said a rejection of this energy boost proposal could “significantly inhibit Georgia Power’s ability to contract with new large load customers, stifle economic development growth in Georgia, compromise the efforts the company and the commission have taken to ensure industry-leading reliability, and reduce the opportunity to place downward pressure on rates for all customers.”
PSC Public Interest Advocacy Staff urged the commission to consider other date center regulation efforts employed by other states.
It highlights Kentucky Utilities/Louisville Gas and Electric requiring executed electric service agreements as a cost-recovery condition for a proposed combined cycle power plant.
The Public Interest Advocacy staff also recommended the commission approve a plan that would require signed contracts backing the capacity needs before any money is spent building out the new capacity.
RELATED: Georgia Democrats oust two GOP incumbents in Public Service Commission special election
The PSC will vote on Georgia Power’s proposal on Dec. 19. The five-member board currently has all Republicans. Two Democrats won election in November. They will take office Jan. 1, 2026.
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