Georgia PSC approves plan to deliver savings for electric customers, meet energy demands of a growing state

Georgia Power announced today that the Georgia Public Service Commission (PSC) has approved a plan which will allow the company to proceed with procuring approximately 9,900 megawatts (MW) of diverse, cost-effective generation resources to serve the energy needs of a growing state. The plan follows a stipulated agreement the company recently reached with the Public Interest Advocacy (PIA) Staff, where Georgia Power agreed that it will file its next base rate case in 2028 in a manner that will ensure incremental revenue from large-load customers will provide benefits of at least $556 million per year, equivalent to $8.50 per month (or approximately $102 per year) for the typical residential customer using 1,000 kilowatt-hours per month. These significant savings for Georgia Power customers reinforces the company’s commitment to delivering affordable energy for customers in the face of projected extraordinary growth, and follows the current freeze on the company’s base rates announced earlier this year.

Kim Greene, chairman, president and CEO of Georgia Power, highlighted the benefits of the agreement when it was reached with PIA Staff, saying, “We know every dollar counts. This plan means more money stays in your pocket while we power Georgia’s future. Unlike any other market in the country, we’re doing things differently here in Georgia to capture and serve this projected unprecedented growth. Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians.”

The plan approved today follows months of review and discussion of Georgia Power’s original filing in July, which requested the certification of more than 3,600 MW of new combined cycle natural gas generation; more than 3,000 MW of new battery energy storage systems (BESS); 350 MW of BESS plus solar; and more than 2,800 MW of power purchase agreements. These resources will serve and benefit all Georgia Power customers as part of a diverse generation mix, and construction projects are expected to positively impact communities across the state.

Georgia continues to experience extraordinary growth, with record-breaking investment in the state of more than $26 billion and more than 23,000 new private sector jobs expected from economic development activities in the last fiscal year, according to the Georgia Department of Economic Development. Georgia Power continues to work with the Georgia PSC to meet the projected demand for electricity, as growth drives new jobs and tax revenue for cities and counties across the state.

“Growth is good for Georgia and for communities of all sizes. The decision by the Georgia PSC today will help keep our state competitive by demonstrating that we are ready to meet the energy demands of new businesses for years to come,” added Greene. “We appreciate the work of the PSC, and all those who participated in this important process.”

Large-Load Growth Continues

Georgia Power will continue to file quarterly large-load reports with the Georgia PSC providing regular updates on forecasted growth and electrical demand. The company’s latest report in November highlights that large-load growth continues to materialize with thousands of megawatts of new electrical load projected in the coming years and construction underway or pending for nearly 30 large-load projects across the state. This growing pipeline of high-demand customers is a key factor enabling the company’s current three-year base rate freeze (excluding storm costs), helping to spread fixed costs across a broader customer base and protect residential and small business customers from paying more to serve large-load customers.

Following the Georgia PSC’s approval of updates to rules and regulations for the company in January, potential large-load customers must now meet more stringent criteria — including providing greater financial commitments and demonstrating infrastructure readiness — to remain in the company’s long-term development pipeline. These enhanced requirements help ensure that only the most credible and viable projects are included in Georgia Power’s risk-adjusted load forecast. The company has filed more than 3 gigawatts of new customer contracts with the Georgia PSC this year – agreements that were reached under the newly approved rules and regulations, which are designed to provide Georgia Power with the flexibility to sustainably serve large-load customers while safeguarding residential and small business customers from additional costs. Additional commitments are currently under evaluation by the company.

To learn more about how Georgia Power is keeping energy reliable and affordable for millions of Georgia homes and businesses, visit www.GeorgiaPower.com.