Georgia Public Service Commission Approves Georgia Power’s Plans for Expanded Generation Capacity
In a recent 4-1 vote, the Georgia Public Service Commission (PSC) approved Georgia Power’s updated plans to significantly expand its generation capacity by investing in a heavier reliance on fossil fuels and adding more renewable energy over the next several years. The decision comes amidst increasing demands from data centers and other large industrial users in the state.
The approved plans include the construction of natural gas or oil-burning generators and solar battery energy facilities in an effort to meet the growing energy needs of customers. However, several clean energy groups raised concerns about allowing Georgia Power to build three fossil fuel burning units at Plant Yates located in Coweta County.
Despite these concerns, the PSC allowed Georgia Power to bypass the normal construction bidding process at Yates in order to swiftly construct units designed to produce electricity for another 40 years. Georgia Power has also committed not to seek recovery of any construction costs overruns from customers, unless caused by events beyond the company’s reasonable control.
Bryan Jacob, Solar Program Director at the Southern Alliance for Clean Energy, expressed disappointment in the decision, warning that customers could face higher bills when fuel prices rise. Last year, the average Georgia Power residential customer’s bill increased by $15.90 per month to offset unrecovered fuel costs and cover new expenses over the next two years.
Amidst these concerns, officials from Georgia Power and the PSC defended the decision, claiming that it would minimize the financial burden on residential customers while ensuring the reliability of electricity supply. Georgia Power estimates that the updated plans will save the typical residential customer about $2.89 on their monthly bills from 2026 to 2028.
Aaron Abramovitz, Chief Financial Officer for Georgia Power, emphasized the company’s commitment to providing clean, safe, reliable, and affordable energy to customers. The approved agreement is expected to benefit all customers and support the economic development of the state, while also lowering rates for customers.
However, the debate over Georgia Power’s utility rates has intensified in recent years, with customers facing hikes in electric base rates and soaring fuel costs. The approval of the updated resource plan comes as the company seeks to address these challenges and ensure a reliable electricity supply for millions of customers.
The PSC’s decision to approve Georgia Power’s updated plans by a 4-1 vote reflects a rare occurrence in an off-cycle year for the company’s integrated plan. Commissioner Lauren “Bubba” McDonald was the sole dissenting vote, raising concerns about the continued burden of rate increases on customers.
Georgia Power also announced plans to increase its renewable energy capacity, including the construction of a 500 megawatt solar facility with battery storage by the end of 2026. The company aims to continue purchasing electricity from external sources, such as a natural gas-fired generator in Pace, Florida, and 750 megawatts of electricity from Mississippi Power.
Critics, including the Southern Environmental Law Center, have raised concerns about the long-term implications of relying on fossil fuels, particularly the potential for locking in Georgia’s dependence on these sources for decades. They argue that Georgia Power could meet growth demands more sustainably by investing in renewable energy sources like solar.
The approval of Georgia Power’s updated plans marks a significant step in the utility’s efforts to address growing energy demands while balancing cost considerations and environmental concerns. As the company moves forward with its expansion plans, the focus will remain on providing reliable, affordable, and sustainable energy solutions for customers across the state.
In a recent decision, state utility regulators in Georgia have approved a plan by Georgia Power to use fossil fuels to power data centers in the state. This decision has sparked some controversy, as many believe that this move is not in line with efforts to reduce carbon emissions and combat climate change.
The use of fossil fuels to power data centers has raised concerns about the environmental impact of these facilities, as data centers are known to consume large amounts of electricity. Some critics argue that this decision goes against the state’s goals of transitioning to cleaner and more sustainable energy sources.
On the other hand, supporters of the plan argue that using fossil fuels to power data centers is a practical and cost-effective solution, as it ensures a reliable source of energy for these critical facilities. They also point out that Georgia Power has committed to offsetting the carbon emissions from these data centers through various initiatives.
Overall, this decision highlights the ongoing debate surrounding the use of fossil fuels in the data center industry, and the balance between reliability, cost, and environmental concerns. It remains to be seen how this decision will impact Georgia’s overall energy strategy and its efforts to address climate change.