The Georgia Public Service Commission has approved Georgia Power Co.’s plan to build and buy more electrical generation, despite concerns from environmentalists about the impact on climate change. The plan, put forward by the largest unit of Southern Co., was approved by four Republican commissioners, while Republican Bubba McDonald abstained. Georgia Power is confident that the deal will lead to lower rates for existing customers, with the company pledging to credit $615 million a year in revenue toward future rate calculations in 2029 and later. This could potentially result in a rate decrease of 1.6% for a typical residential customer, although the company cannot guarantee that rates will fall due to other potential spending approvals in the meantime.
No changes to rates will occur as a result of the deal until 2026. Georgia Power Chief Financial Officer Aaron Abramowitz believes that the agreement will protect the reliability of electric service for customers and support the state’s economic development while lowering rates for all customers. The approval of the agreement comes at a time when Georgia Power customers have seen their bills rise significantly due to various factors, including higher natural gas costs and construction projects such as the new nuclear reactors at Plant Vogtle near Augusta. With a typical residential customer now paying around $157 a month, Commissioner Fitz Johnson emphasized the need to address rate hikes and ensure that customers are not burdened by additional costs.
Environmentalists and customer advocates have raised concerns about allowing Georgia Power to buy power and build new fossil fuel plants without undergoing a competitive process. Critics argue that using fossil fuel sources will lead to increased carbon dioxide emissions, contributing to climate change, and that cleaner, more cost-effective options could have been considered. The request for more generation capacity by Georgia Power is considered unusual as regulators typically evaluate such needs on a three-year cycle, with the next integrated resource plan scheduled for next year. However, the company argues that the surge in demand from new users, such as data centers, necessitates immediate action, with 6,200 megawatts of additional demand having signed up in recent years. This is almost three times the capacity of the new Vogtle reactors at Plant Vogtle.
The approved deal allows Georgia Power to contract for generation from a natural gas plant in Pace, Florida, and from Mississippi Power Co., another Southern Co. subsidiary. Additionally, the company has been approved to build three new combustion turbines at Plant Yates near Newnan, which could burn natural gas or oil. Critics argue that alternatives to the new capacity at Yates could have been explored through a competitive process, opting for cleaner sources of energy. Despite the approval, concerns remain among environmentalists and advocates about the environmental impact and the potential for rate increases. As the debate continues, the decision to move forward with these new projects will shape Georgia Power’s energy generation strategy and its impact on customers and the environment in the years to come.
