Environmental groups oppose Georgia Power expansion powering data centers

ATLANTA - Environmental groups are calling on state regulators to reverse a decision granting Georgia Power a massive expansion of its energy grid to meet the growing power need of nearby data centers. 

What we know:

State regulators are scheduled to vote on whether to rethink a decision approving Georgia Power's massive plan to overhaul its energy grid.
 
The company says it needs to keep up with demand from data centers.
 
Critics worry that if the data centers fail to show up, will customers get stuck footing the bill?

What they're saying:

Jennifer Whitfield, a senior attorney with the Southern Environmental Law Center, says state regulators were wrong to grant Georgia Power a whopping 10 gigawatts of extra capacity.
 
"This is a very big, high-stakes decision that will cost many billions of dollars," Whitfield said. "Which is why we're asking them to take a second look."

Dig deeper:

Late last year, the Public Service Commission voted to allow the utility to proceed with the massive expansion. It'll include new power plants, battery storage systems, and solar energy. The company says it needs to fuel the expected surge in data centers.
 
The Southern Environmental Law Center filed a petition asking the commission to reconsider its decision. The group says the plan is not in the public interest.
 
"Georgia Power does need some new resources. I think we all agree about that. The question is: how many? About a third of the resources, there is a very big question mark, Whitfield said."
 
Georgia Power expects the grid expansion to cost $15.6 billion. The petition says Georgia Power has not proven it has obtained signed contracts to support the extra supply. Whitfield worries consumers will be stuck covering the cost if the data centers fail to materialize.
 
"Georgia Power does not need all of that extra capacity," Whitfield said. "If we don't need it, all of us are going to have billions of additional dollars that we're going to have to come up with money for, and that's going to come out of our bills."
 
When asked if Georgia Power needs all that extra capacity, Tom Krause, spokesperson for the Public Service Commission, answered, "This was litigated with six months of open hearings and sworn testimony that did have cross-examination. The commissioners determined that it was necessary.
 
"As contracts come in for new data centers, public service commission staff is looking at the contract and assuring everything is in place and that everything is doable," Krause said.
 
When asked if Georgia Power's expansion is in the public interest, Krause responded, "The commissioners certainly believe so. They voted to approve it."
 
Krause says there are provisions in place to protect customers if data centers don't meet the expected numbers.

"We could tell them to stop construction on the projects, we could retire projects early, we could stop purchase agreements we do for other states for power, or we could tell them to sell the power on the open market," Krause said.
 
The Public Service Commission last year approved a rate freeze through 2028.
          
Georgia Power spokesperson Matthew Kent referred FOX 5 to a past statement they sent last week: "Residential and small business customers will not pay higher bills due to data centers. The Georgia PSC already has strong authority — reinforced by enhanced large load rules approved last year — to ensure that data centers and other large customers pay the full costs of serving them. Those protections are designed to shield families and small businesses from cost shifting while keeping Georgia competitive for jobs and investment. Because those safeguards are in place, additional statutory requirements for a single class would be duplicative. They could limit the commission's ability to balance affordability, reliability, and growth for all Georgians."

"Georgia is different than other states and markets. The way we are addressing growth is helping us keep costs low for customers - including our multi-year rate freeze in place now and more than $100 in annual savings for families beginning in 2028."

What's next:

The Public Service Commission is scheduled to meet at 9 a.m. on Wednesday.

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• PSC approves Georgia Power expansion amid protest
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• Georgia Power seeks $16B expansion to add 10 gigawatts to grid