Stipulated agreement reached to help keep electricity affordable and meet future energy demand in Georgia
Good news for Georgia families and businesses: Georgia Power has reached an agreement with the Public Interest Advocacy (PIA) Staff of the Georgia Public Service Commission (PSC) that, if approved, will help lower energy costs—all while meeting growing electricity demand across the state. The company announced today it has reached the stipulated agreement with the PIA Staff, which is designed to allow the company to meet the projected rapidly increasing demand for electricity in the state while also keeping costs low for customers. The stipulated agreement marks a key milestone in the certification proceeding for approximately 9,900 megawatts (MW) of new resources that have been under review by the Georgia PSC since July. Read more here.
The stipulated agreement would allow the company to proceed with procuring diverse, cost-effective resources, most of which were procured through a competitive bid process. Importantly, the agreement notes that, when the company files its next base rate case in 2028, it would do so in a manner that ensures incremental revenue from large-load customers of at least $556 million per year will put downward pressure on rates of at least $8.50 per month (or approximately $102 per year) for the typical residential customer using 1,000 kilowatt-hours per month. This 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.
“We know every dollar counts. This plan means more money stays in your pocket while we power Georgia’s future,” said Kim Greene, chairman, president and CEO of Georgia Power. “Unlike any other market in the country, we’re doing things differently here in Georgia to capture and serve this projected unprecedented growth. This stipulated agreement helps ensure we leverage Georgia’s growth in a way that lowers costs for customers. Large energy users are paying more so families and small businesses can pay less, and that’s a great result for Georgians.”
Georgia continues to grow and experience an increased demand for electricity, driven by a strong economy and robust economic development activities. This stipulated agreement showcases how large energy users such as data centers are helping keep costs lower for all customers and supporting infrastructure investments that benefit the state’s entire electric grid. If approved by the Georgia PSC, the stipulated agreement will allow the company to proceed with 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.
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.
To learn more about how Georgia Power is keeping energy reliable and affordable for millions of Georgia homes and businesses, visit www.GeorgiaPower.com.
