- Georgia Power’s plan to build new power plants for data centers could raise residential monthly bills by $20 or more.
- Public Service Commission (PSC) analysts have called the proposed expansion “speculative,” recommending that only one-third of the project be approved for now.
- Experts warn that if the massive energy demand from data centers fails to materialize, existing customers could be forced to pay for unused power plants.
- The Georgia PSC is scheduled to vote on the controversial proposal on December 19, with outgoing commissioners casting decisive votes.
Analysts with the Georgia Public Service Commission (PSC) have issued a stark warning: Georgia Power’s residential customers could see their monthly bills climb by $20 or more if a massive energy infrastructure plan is approved. The proposal, designed to meet the surging electricity demand from new data centers, has sparked fears that households will bear the financial risk of the expansion.
A “Speculative” Bet on Data Centers
At the heart of the issue is Georgia Power’s request to add 10,000 megawatts of power generation capacity over the next five years—an unprecedented figure. However, PSC staff analysts argue that a significant portion of this projected demand is not guaranteed.
In written testimony, the analysts labeled the full expansion as “speculative,” noting that only a fraction of the proposed buildout is supported by signed contracts. They fear this could expose customers to “the risk of stranded costs if the anticipated load does not materialize.”
Instead of greenlighting the entire project, the PSC staff recommended approving only about a third of the new power plants and battery storage facilities for now. This cautious approach aims to protect consumers from paying for power infrastructure that may ultimately go unused.
Who Foots the Bill?
While Georgia Power has argued that new billing rules will protect residential customers from costs associated with serving data centers, PSC analysts remain unconvinced. They point out that most existing contracts with data centers were signed before these protective measures were in place.
“Without executed contracts under the new large load framework, there is no guarantee those costs will not be passed on to existing customers,” the analysts wrote.
Furthermore, the testimony highlighted that Georgia Power stands to profit “tremendously” from the expansion, as the new power plants would nearly double the company’s “rate base,” a key factor in calculating its earnings.
A Critical Vote Looms
Georgia Power has pushed back, stating that the demand forecast is based on firm commitments from large-scale customers. The company maintains that the new power generation is essential to support Georgia’s rapid economic growth, driven heavily by the data center industry.
The final decision rests with the PSC, which is set to vote on the proposal on December 19. The timing is critical, as two incumbent commissioners who lost their seats in recent elections—where rising utility bills were a major issue—will be casting votes just days before they leave office.
Adding to the concern is Georgia Power’s track record with large projects. Analysts cited the massive cost overruns and delays at the Plant Vogtle nuclear expansion as a cautionary tale, expressing concern that similar issues could plague this new buildout and leave customers paying the price.
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