Georgia Commission Approves 9.9 Gigawatts of New Generation for Data Centers With Ratepayer Protections

The Georgia Public Service Commission on Dec. 19 voted to approve an agreement allowing Georgia Power to move forward with 9,885 megawatts of new electricity generation, primarily intended to serve large new customers such as data centers, while shielding existing residential and business customers from higher rates. The approved capacity includes new natural gas generation, solar, and battery storage resources.

Under the order, Georgia Power assumes responsibility for backing the costs of the new projects if anticipated data center demand does not materialize. The regulator reiterated that its authority is limited to oversight of the utility’s electric service and does not extend to approving data center construction, siting, or operations. Georgia Power filed its certification request in July, formally initiating review and settlement discussions tied to the scale of the expansion and cost protections for projected data center demand.

As part of the agreement, Georgia Power committed to financially backstop new generation in 2029, 2030, and 2031. This commitment extends beyond the current rate freeze that remains in effect through the end of 2028 and gives the commission flexibility to revisit or reverse certifications if customer demand does not develop as anticipated.

The commission also highlighted a direct customer benefit tied to the settlement. The financial backstop is expected to place downward pressure of about $8.50 per month on the average household using 1,000 kilowatt-hours, reflecting protections built into the cost recovery structure.

The approved framework responds to concerns raised by the commission’s Public Interest Advocacy Staff during the certification review. Staff filings highlighted that contracts had not been executed for all projected data center load associated with the proposed capacity and warned that premature construction could expose customers to stranded generation assets. Following negotiations, the parties reached a settlement that preserves the full scale of the expansion while transferring the risk of underutilization to the utility.

The order takes effect immediately, with parties of record allowed 10 days to seek rehearing or reconsideration. The decision positions Georgia to accommodate rapid data center growth while reinforcing regulatory safeguards for existing ratepayers and limiting long-term exposure to demand uncertainty.