Georgia Power Rates May Increase as PSC Considers Data Center Expansion, Analysts Say

Georgia Power Faces Potential Bill Increases Amid Data Center Expansion Proposal

Georgia Power customers may see an increase of $20 or more in monthly electricity bills if the Georgia Public Service Commission (PSC) approves the utility’s planned expansion to support new data centers. PSC staff analysts warn that the proposed buildout to add 10,000 megawatts of power infrastructure may burden existing customers with costs tied to uncertain future demand.

The commission’s staff recommends approving only about one-third of the requested new plants and battery storage projects, as much of the proposed capacity lacks binding customer contracts. Robert Trokey, PSC electric section director, and outside consultants emphasize the speculative nature of the remaining projects and caution about risks of stranded costs if data center growth falls short.

Scale and Risks of the Proposed Buildout

The expansion request is unprecedented in Georgia’s history, exceeding the capacity of the four nuclear reactors at Plant Vogtle combined. Environmental and consumer advocates describe the scale as the largest and most expensive power infrastructure buildout ever proposed in the state.

Georgia Power disputes claims of speculative demand, citing a portfolio of committed large customers totaling approximately 11,000 megawatts. However, PSC analysts note the utility’s past forecasts have overestimated actual electricity demand from data centers, highlighting the risk of overbuilding.

Financial Implications and Safeguards

Despite recent billing rule changes aiming to protect non-data center customers from bearing related costs, many contracts preceded these rules. PSC staff stress that without contracts adhering to new frameworks, there is no guarantee that costs won’t transfer to residential customers.

Georgia Power could profit significantly if the expansion proceeds, as it would nearly double the company’s rate base, affecting future earnings. The staff warns the utility may seek to recover various associated costs—whether or not all projects are completed—potentially increasing customer bills over time.

Concerns Over Delays and Cost Overruns

Past projects like the Plant Vogtle nuclear expansion, which experienced significant delays and doubled initial budgets, raise concerns about Georgia Power’s ability to deliver on time and within cost. Staff highlight that inflationary pressures and contractor inexperience especially in battery storage projects may fuel further overruns.

Given these factors, the PSC is urged to approve a portion of the expansion with conditions, reject the most expensive projects, and balance customer protection with infrastructure needs. The commission’s final decision is expected by mid-December.