Georgia Power Disputes $20 Monthly Increase Claim for Data Centers
Georgia Power has recently submitted new testimony aiming to clarify its proposal for expanding energy resources to support data centers across the state. The utility company plans to add approximately 10,000 megawatts of power, which could potentially service around nine million households. The Georgia Public Service Commission (PSC), a five-member body, will review and must approve this energy enhancement plan.
Potential Impact on Utility Bills
A recent report from an advisory group warned that this significant energy escalation could result in an additional $20 monthly charge for Georgia Power customers. This concern primarily affects non-large load customers, according to the testimony from Tom Newsome, Philip Hayet, and Leah Wellborn, representing the PSC’s Public Interest Advocacy (PIA) staff. They emphasized the risk of financial strain if Georgia Power commits to acquiring additional resources without securing new incremental revenues.
Georgia Power’s Rebuttal
In response to the advisory group’s claims, Georgia Power asserted that the concerns raised were inaccurate. The rebuttal testimony, authored by Kristin W. Curylo, Jeffrey R. Grubb, Brandon Looney, and Francisco Valle, insisted that customer rates would remain unchanged. They argued that new large load customers would bear the costs of services, thus preventing any financial burden on existing residential customers.
Energy Planning and Revenue Offset
The company believes that revenue generated from data centers would help offset the expenses associated with securing additional energy resources. Currently, Georgia Power has established contracts for 7,900 MW of energy with data centers either under development or planned within the state.
- Georgia Power has over 73 data centers operating.
- The utility firm aims to secure the requested full capacity to address energy demand effectively.
- A decision on their proposal is slated for December 19.
Position of the PSC Public Interest Advocacy Staff
The PIA staff has advised against fully endorsing Georgia Power’s extensive proposal. Instead, they recommend that the PSC consider approving a more modest acquisition of 3,125 MW of resources. Additionally, they suggest conditional certification for another 4,298 MWs.
In pushing for a more cautious approach, the PIA noted the necessity of supporting frameworks seen in other states. For instance, they highlighted Kentucky utilities’ requirement for signed electric service agreements to ensure cost recovery before any expansions are permitted.
Looking Ahead
Georgia Power’s proposal is not only crucial for meeting customer demand but also for fostering economic development within the region. A rejection of the expansion could hinder their ability to attract new large load customers and adversely affect overall reliability and rates for all clients. The PSC’s decision on December 19 will be pivotal in shaping the future of energy resources allocated for data centers in Georgia.
