ATLANTA — Georgia Power has reached an agreement with the state Public Service Commission that would allow the utility to add roughly 10,000 megawatts of new power supplies over the next five years, an expansion largely aimed at serving the rapid growth of data centers across the state.
As part of the deal, Georgia Power has agreed to freeze rates for three years. Company spokesman Jacob Hawkins says the additional revenue from major energy users could help ease monthly costs for residents and small businesses.
He states, “It’s going to allow us to meet this new demand, while also making sure the revenues from these large energy users put downward pressure on rates for residential customers and small businesses.”
Georgia Power estimates that the planned capacity boost is enough to power about 4 million homes and could save customers around $8.50 a month. Hawkins also pushed back on earlier projections of potential rate hikes, saying previous estimates “did not include revenues from some of these large energy users.”
However, some skeptics, including the Southern Environmental Law Center, warn there are many unanswered questions about such a large expansion in a short period of time.
Attorney Jennifer Whitfield says the financial risks will fall on customers if the anticipated wave of data centers does not materialize. She states, “Not only are we going to have to build it and breathe in the air that it pollutes, but also are going to have to pay for it.”
Whitfield also raised concerns about what happens once the three-year rate freeze expires. She states, “There’s a lot of ‘what if’s’ that we don’t have answered yet. On the plus side there are three years of protection, but only three.”
The price tag for the expansion is at least $15 billion, according to public filings.
Some critics expressed frustration that the deal was announced before Wednesday’s public hearing and before two newly-elected commissioners take office in January, arguing the commission should have paused to allow the incoming members to weigh in.
A final vote on the agreement is scheduled for later this month.
WSB Radio’s Veronica Water’s contributed to this story.