On May 27, Georgia Public Service Commissioner Tricia Pridemore, left questioned the analysis of PSC staff witnesses who argued that Georgia Power should lower its data center growth forecasts in its 2025 long term plan. Stanley Dunlap/Georgia Power
The state’s largest electric utility says it needs to significantly increase its energy capacity to accommodate a potential wave of data centers.
Georgia Power plans to turn to some renewable energy to generate that electricity, but for the most part, the utility intends to lean on fossil fuel sources like gas-fired power plants to boost capacity.
Those controversial plans, packed into what’s called an integrated resource plan, received a public airing during three days of public hearings. Several clean energy advocacy groups and state regulator staffers urged members of the Georgia Public Service Commission to reject the plan.
Commissioners are set to vote on the proposal in July.
Data centers fuel growth forecasts
Georgia Power projects that over the next several years the growth of data centers will significantly increase the state’s electricity consumption, and the company is requesting to add about 9,000 megawatts of capacity by 2031. According to the utility’s forecasts, data centers will consume about 80% of the new power generated.
But some have questioned the accuracy of those projections.
PSC staff expert witnesses said this week they are concerned Georgia Power is using incorrect model forecasts. They also say the utility has not provided evidence showing that data centers are likely to materialize at a higher rate than other industries.
Georgia Power attorneys say the company’s forecast continues to grow based on the state’s economic projections for commercial and industrial customers.
PSC staff questioned the models used by the company that led to forecasting as much as 13,000 megawatts of peak load growth through 2044. The staff is recommending Georgia Power decrease its load growth projections for data centers by as much as 25%.
“Our recommendation is to adjust down Georgia Power’s load forecast,” said Robert Trokey, director of the Public Service Commission’s electric unit. “I think it’s important that they continue to file the data that they have been filing in quarterly reports. If we see trends continue over the short term as the projects roll out, then certainly Georgia Power should adjust its forecast methodologies.”
Advocacy groups have argued that overbuilding the infrastructure could shift the cost burden to ratepayers.
Public Service Commissioner Tricia Pridemore pushed back on the criticism, pointing to a recent rule change that requires data centers and other large companies consuming more than 100 megawatts of energy to cover their full electricity costs.
The change included a provision allowing Georgia Power to require companies to put up front-end collateral for energy costs over the lifetime of the contract. State regulators would also review any contract for high-energy users.
Clean energy versus fossil fuels
Georgia Power has come under fire for reversing plans to shutter a pair of coal plants, Bowen and Scherer. The company instead is asking that state regulators sign off on extending the life of the two plants and allow the company to ramp up its fossil fuel energy capacity.
The utility had planned to retire Bowen and Scherer by 2028. Since then, Georgia Power has cited the projected industrial growth boom primarily driven by massive data centers as a reason it is now planning to retire Bowen by 2035 and Scherer Unit 3 by 2038.
Energy experts and clean energy advocates expressed concerns about the company’s potential overestimation of electricity demand and the underestimation of gas-fired unit costs, which could lead to higher rates.
They recommended increasing planning flexibility, updating load forecasts, and exploring earlier deployment of renewables and energy storage. Their analysis compared different scenarios, showing that renewables and energy storage are more economical under various future conditions.
Critics of the plan advised the commission to require Georgia Power to present additional research portfolios and improve forecast accuracy. The company was also urged to further increase its investments in renewable energies like solar.
Energy consultant Maria Roumpani, who testified on behalf of the Georgia Conservation Voters, said that renewable energy and storage are much more economically viable than the expansion of gas-fired power plants.
“The analysis should focus on enabling earlier years of deployment for wind and energy storage, especially medium and low duration, as well as higher limits for solar,” she said.
Public, protestors weigh in
Clean energy and consumer advocates held a rally outside the PSC’s downtown offices while the hearing was underway Tuesday, warning of the potential consequences if the commission rubber-stamps Georgia Power’s long-term energy plans.
The five-member utility regulator is set to vote July 15.
Hundreds of written comments poured into the PSC, many of them dominated by concerns about rising utility bills and health risks tied to fossil fuels.
However, the three days of hearings began with public comments expressing split reactions to Georgia Power and its energy plans.
The long-term energy generation plan is receiving support from the Georgia Chamber of Commerce and local chamber officials such as Timothy Craig, director of business development of Valdosta-Lowndes County Chamber of Commerce.
Craig told commissioners that he felt the company’s energy plan provides the necessary infrastructure to continue providing reliable electricity to businesses.
“One of the first questions small business owners want to ask is: can I count on the systems that support my business?” Craig said this week. “Energy is at the top of that list. Whether it’s a local bakery or high tech firm, reliable energy is essential. Georgia Power’s plan delivers that reliability.”
Retired educator Bette Holland, founder of North Georgia Conservation Coalition, said it’s important that state regulators accept the science that shows that burning coal, oil and natural gas detrimentally increases the earth’s temperature.
“Solar and wind are much cheaper than fossil fuels to create energy,” Holland said. “The only thing that stops us are the energy companies and regulators who bow to the pressure of the fossil fuel companies. Please begin to think about the survival of the people in Georgia, in this country, on this planet, and about the survival of our natural resources in our wildlife.”
GET THE MORNING HEADLINES.
This post was originally authored and published by Stanley Dunlap from Georgia Recorder via RSS Feed. Join today to get your news feed on Nationwide Report®.
