ATLANTA — After months of debate, state regulators are set to approve a plan that could lead to the largest single increase of power production in U.S. history.
Georgia Power is requesting approval to add 10,000 megawatts to its power generation capabilities. Currently, Georgia Power produces between 14,000 and 20,000 megawatts in its entire system.
The total cost for the build-out is expected to top $16 billion.
“I believe that this is the largest expansion that we’ve seen in the United States,” Matthew Kent, a Georgia Power spokesperson, said.
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Kent told Channel 2’s Michael Doudna that the new capabilities are needed to meet the rising demand for data centers.
“Georgia Power has an obligation to serve our customers. And if these data centers do choose us to serve them, we have an obligation to serve them,” Kent said.
Georgia Power estimates that at least 80% of future demand is from data centers.
According to numbers provided by Kent, most of these centers will use at least 100 times more power a day than the average household.
“If these data centers do choose us to serve them, we have an obligation to serve them. So we need to install this infrastructure,” Kent said.
THE CONCERN
“My concern is we’re talking about theoretical contracts with theoretical large load data centers,” Liz Coyle, the Executive Director of Georgia Watch, said, “but the money to build these facilities is very, very real.”
Coyle worries that Georgia Power may be overestimating future demand while committing billions to non-renewable energy sources. She is concerned that if the contracts do not materialize, Georgia Power customers may need to pay more.
“It locks in potentially billions and billions of dollars in spending that some customers are gonna have to pay for,” Coyle said. ”Let’s say the contracts don’t come through; there are some mitigation actions that the commission or the company could take. Why are we setting ourselves up for the need to mitigate?"
Georgia Power says they have stopgaps in place if the contracts don’t happen. Also, earlier this year, the Public Service Commission passed rules that would require large load customers like data centers to pay for the power they use. That would include everything from construction to transmission to the power they actually use.
“They’re covering their cost so that it’s not passed on to the consumer,” Kent said.
However, Coyle says the PSC should wait for more clarity about what contracts are actually coming to the state. Also, this vote is set to happen just weeks before two new Democratic PSC members are set to take their seats in January.
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THE AGREEMENT
Last week, Georgia Power reached an agreement that promises to reduce energy bills for families while expanding the state’s power grid.
The stipulation agreement says Georgia Power would file its next base rate case in a manner that will ensure there is “downward pressure” of at least $8.50 a month to the typical residential customer.
Downward pressure is not a rate cut. However, it should reduce what the utility will ask for in its next rate case. This will not happen until at least 2028, as rates are already frozen for the next few years.
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