Georgia's Utility Regulator Rushes Deal for Georgia Power Before Public Hearing

ATLANTA, Georgia — An hour before hearing testimony from the public and advocacy groups, the Georgia Public Service Commission (PSC) posted a settlement agreement approving Georgia Power's plan to build the most expensive gas plants in the country, leaving Georgians to foot the bill.

The settlement, which the PSC is expected to vote on during its Dec. 19 meeting, approves Georgia Power's "Requests for Proposals," or RFP, despite clear warnings from the Sierra Club, Southern Alliance for Clean Energy, and PSC's own staff that Georgia Power's plan hinges on a data center bubble. The utility's proposal is expected to cost at least $15 billion in capital costs, though the total costs have yet to be publicly disclosed. The proposed settlement would dramatically increase Georgian's energy bills for years to come for data centers that might not even be built. Several counties in Georgia have already passed moratoriums on data centers, awaiting more insight into their potential impact on local communities.

"This proposed settlement is the largest single investment in electric infrastructure in the state's history. It calls for building the most expensive gas plants in the country and will result in higher prices for consumers and more pollution in our communities. It will cause temperatures to go up, more frequent and more powerful storms, and deadlier floods and heatwaves," said Dekalb County resident Lisa Coronado during the Dec. 10 hearing. "But Georgia Power doesn't care about any of that. When the temperatures go up, Georgia Power makes more money because Georgians run their air conditioning more often. When climate-change fueled storms wreck our infrastructure, Georgia Power passes repair costs onto us."

The settlement includes promises of "downward pressure" for ratepayers' bills, but Georgia Power's claim that typical ratepayers will eventually see a reduction of $8.50 per month is short-sighted. First, Georgia Power has made similar promises in the past and continued to raise rates. Second, the proposed rate decrease would only cover three years, whereas ratepayers will have to pay for gas plants for 45 years.

In response, the Sierra Club released the following statement:

"The PSC's own expert staff said Georgia building gas plants was not in the best interest of ratepayers," said Adrien Webber, Sierra Club Georgia Chapter Director. "At a time when the PSC should be fighting for affordability for Georgians, they instead push through a plan that will continue to squeeze Georgia families already struggling to make ends meet. As we consider our next steps, it's clear that the people of Georgia demand change from our PSC and the Sierra Club will continue to fight to make that change happen.

"'Georgia Power's agreement is still based on the idea that data center projects are coming, which is not guaranteed," Webber continued. "The PSC's own staff saw Georgia Power's plan as overbuilding for projects that may or may not appear, threatening to leave the cost for ratepayers to pick up. It's infuriating that Georgia Power and the PSC refuse to even take public comment or insight from advocates into consideration before coming to this agreement. Filing this agreement just an hour before the second round of hearings shows that the PSC refuses to be held accountable to the people of Georgia."