Georgia PSC Approves Stipulated Agreement for New Power Generation Capacity

The Georgia Public Service Commission (PSC) voted unanimously (5–0) to approve a stipulated agreement allowing Georgia Power to produce 9,885 megawatts of new energy. Most of the new capacity is intended to serve large new customers, including data centers.

The approved agreement is designed to protect existing Georgia Power customers from increased rates associated with serving new large-load customers. Under the agreement, the costs of providing service to new data centers will not be passed on to current ratepayers. This protection remains in place even if projected data center demand does not materialize.

Georgia Power has agreed to financially backstop new generation projects in 2029, 2030, and 2031, extending beyond the current rate freeze that remains in effect through the end of 2028. If contracts with new data centers are not secured, the PSC will retain the ability to alter or reverse certification of the new infrastructure projects.

PSC Chairman Jason Shaw said the Commission reviewed written evidence, sworn testimony, and public comments before approving the agreement. He stated that the agreement ensures that data centers — or Georgia Power, if necessary — will cover the costs of the new infrastructure, rather than existing customers.

Georgia Power filed for PSC certification of the 9,885 megawatts of new power production on July 30. In testimony, the PSC’s Public Interest Advocacy Staff raised concerns that contracts had not been signed for all anticipated data center customers and that, if demand did not materialize, newly constructed facilities could become stranded assets.

Following negotiations, Georgia Power and staff reached an agreement to approve the full 9,885 megawatts while requiring Georgia Power to financially backstop the expected new load. This provision is intended to prevent stranded assets and is projected to create $8.50 per month of downward pressure on the average household bill for customers using 1,000 kilowatt-hours of electricity.

Commissioner Tim Echols said the vote addresses power needs through 2031 and noted that future investments beyond that timeframe may require data centers and related technologies to assume greater financial risk for new generation development.