Georgia Power is set to beef up its power generation after striking a deal early Wednesday with the Public Service Commission's Public Interest Advocacy staff. The agreement, pending approval from the Georgia Public Service Commission commissioners, will see the utility build new gas turbines and add battery storage to meet a surge in demand, primarily from burgeoning data centers and factories.
The deal encompasses the construction of three new natural gas and oil turbines at Plant Yates, in Coweta County, purchases of more electricity from other utilities, and significant battery deployments alongside existing solar setups. Despite a spate of rate hikes in the past 15 months, Georgia Power insists that the influx of new businesses should exert "downward pressure on rates." Aaron Abramovitz, Georgia Power's chief financial officer, claimed during a hearing, "This agreement provides substantial customer protections and ensures that Georgia Power has the needed capacity resources to preserve and protect the valuable energy reliability that our customers expect and Georgia’s growing economy must have," as WABE reported.
However, not everyone bought into Georgia Power's optimism. Critics, including consumer and environmental advocates, have expressed concerns about the plan's potential impact on customer bills and environmental implications. Jennifer Whitfield, an attorney with the Southern Environmental Law Center, voiced her skepticism in a statement saying, "This is a fossil fuel bonanza that skips the regulatory processes in place to protect billpayers." According to the same organization, the projected lifespan of the new infrastructure could bind the state to fossil fuels for over four decades.
Bypassing the standard competitive process also ruffled feathers among advocates who argue that viable alternatives like demand response strategies, and networks of residential and commercial solar panels, would be preferable. But Georgia Power plans to hold off launching a pilot virtual power plant program until next year, a move Don Moreland, executive director of the Georgia Solar Energy Association, deems a stalling tactic. Moreland argued, "Why wait to do a pilot program until 2025, when you can do the pilot program now and then be able to expand that program next year?" echoing statements obtained by WABE.
Amidst concerns about volatile energy costs and rising bills, Georgia Power officials have stated that the deal won't lead to higher rates due to sufficient revenue from new customers. However, Bryan Jacob of the Southern Alliance for Clean Energy pointed out that Georgia Power's promise doesn't encompass fuel costs, which have been a significant factor in recent bill spikes. The proposed agreement now awaits the final say of the commissioners as advocacy groups brace for the opportunity to push for amendments.
