Andy Li, andy.li@sierraclub.org
ATLANTA - Details on the costs incurred by Georgia Power to serve large load customers, namely data centers, will remain secret until 2028 following a vote Tuesday by the Public Service Commission (PSC). The commission voted unanimously in favor of a settlement agreement, referred to as the Stipulated Agreement, that doesn’t require the utility company to prove that data centers would result in lower rates for all customers or how the costs of bringing these facilities online will be socialized among existing billpayers.
NRDC and partners Sierra Club and Southern Alliance for Clean Energy filed testimony that states that without more sufficient information provided by Georgia Power, the PSC will not be able to fully understand the deal’s impacts on customers.
Following is a statement from Patrick King II, state policy director with NRDC (Natural Resources Defense Council):
“Now that the stipulation has been approved without modification, we’re entering a period where Georgia Power customers are being asked to trust a process that offers little clarity. Despite being billed as a ‘rate freeze,’ we know customers will see multiple increases in the coming years — and neither they nor the commission have the data needed to understand the real cost impacts of large-scale data centers.”
Following is a statement from Lexy Doherty, Sierra Club Beyond Coal Campaign organizing strategist:
“Georgia Power has intentionally rushed this rate case process to keep organizations like the Sierra Club from fully investigating their claims and entirely failed to demonstrate that data center load growth will not impact billpayers’ pockets. Despite the smoke and mirrors of a so-called “rate freeze”, this settlement leaves the door open for Georgia Power to increase rates as soon as 2026. It is shameful that the Georgia Public Service Commission has chosen to side with a utility over the people of Georgia who are in desperate need for substantive relief, not empty promises.”
Background:
As part of the recently approved Stipulated Agreement, current base utility rates will remain the same until the next rate case, which is slated for 2028. This is great news for billpayers who have seen their monthly bills increase by an average of $43 since 2022 due to rate hikes and fuel costs approved by the PSC. That said, GPC customers can expect to see an increase in their bills at least twice before 2028 (in an all-source certification proceeding and in a special procedure next year for storm damage recovery).
These near-term rate increases may be compounded in 2028 when the utility files an illustrative cost of service study which will show how the costs to serve data centers will be shared among existing customers and new customers. Thus far, this data has not been presented in the ongoing Integrated Resource Planning Docket or in the recently approved proposal for changes to GPC’s rules and tariffs regarding data centers.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.
About NRDC
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).