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Georgia Public Service Commission considers Georgia Power’s energy plan as data centers and AI boom

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ATLANTA — A plan before Georgia’s Public Service Commission could shape the future of the state’s energy grid system.

The commission held its third public hearing on Georgia Power’s integrated resource plan on Monday, Channel 2’s Michael Doudna reported. The power company is planning for the projected exploding demand for energy over the next six years.

“Really, our grid is going to double over the next eight to 10 years. That’s just staggering to think about,” said Tim Echols, a Georgia Public Service Commissioner.

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Georgia Power projects demand to increase by 8,200 megawatts by 2031. For comparison, the newly completed Plant Vogtle has a total generating capacity of approximately 4,800 megawatts.

Georgia Power said around 80% of the projected demand is from data centers.

“Who is paying the cost for things like the massive transmission lines that are going to now have to go up across the city, across the state. Who’s gonna pay for that?” said Jennifer Whitfield, an attorney with the Southern Environmental Law Center.

Georgia Power and commissioners say that data centers will pay their fair share. New rules will allow them to charge data centers for the increased cost of infrastructure and energy.

“Longer contract period, higher minimum bill, letter of credit, basically making them pay all the incremental cost of generating and transmitting power,” Echols said.

However, some are skeptical of the plan.

“So far, we haven’t seen the proof. And we haven’t seen commitments broad enough to give us the comfort that they will, in fact, make good on that,” Whitfield said.

To produce the needed energy, Georgia Power says they will need to ramp up their production. That includes increasing production from renewable sources but also includes relying on more fossil fuels.

“It’s something where we’ve got to provide that power. We want to be prepared for that,” Echols said. “The main thing is we’re going to keep it balanced. We’re going have some nuclear, we’re going have some fossil, We’re going to have some. Some solar and some batteries.”

In a news release from earlier this year, Georgia Power said they would look into:

  • Extended power uprates to reliable, emission-free units at Plants Hatch and Vogtle. (Uprates means increasing a nuclear power plant’s output, according to the Nuclear Power Commission.) The company has proposed more investment in Hatch Units 1 and 2 and Vogtle Units 1 and 2 to enable those units to deliver an additional 112 megawatts of carbon-free energy to customers.
  • Extensions and upgrades to existing power plants. The company’s integration of cleaner natural gas – which Georgia Power said has helped reduce overall carbon emissions by more than 60% since 2007 – into its fleet will continue. More upgrades are planned for Plant McIntosh near Savannah that would add an additional 268 megawatts of capacity. The company has also proposed extended operation of certain coal and natural gas units through at least 2034, with more upgrades and compliance activities planned. This effort includes the continued operation of coal-fired units at Plants Bowen and Scherer with about 4,000 megawatts of electricity. Georgia Power said over time, it has added and now operate state-of-the-art technology to reduce the environmental footprint of those facilities, including scrubbers, selective catalytic reduction systems and baghouses, advancements that the power company says resulted in reductions in emissions by more than 95% over the past few decades. 
  • Continued investment to modernize and operate Georgia’s hydro fleet. Georgia Power said its fleet of hydroelectric generating units is another source of emission-free energy, with some units serving the state for more than 100 years. Georgia Power said the proposal continues the company’s efforts to modernize its hydro fleet with new projects for nine existing hydro plants. This includes critical replacements and refurbishments needed for turbines, generators and other equipment. These units haven’t been previously approved for modernization, and Georgia Power said these efforts are expected to allow them to operate for at least another 40 years.

The commission is set to vote on the plan next month.

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