Fossil fuels to remain in Georgia Power energy-supply mix

Georgia energy regulators Tuesday unanimously approved Georgia Power's plan to keep burning coal and gas to generate electricity, a move critics warned will increase rates to meet the unsubstantiated needs of data centers.

ThestatePublicService Commission (PSC) signed off on the Atlanta-based utility's 2025 Integrated Resource Plan (IRP), outlining the mix of energy sources the company intends to rely on for power generation during the coming years. Although Tuesday's vote took place with virtually no discussion, it followed months of hearings on the plan, which Georgia Power submitted in January.

The IRP authorizes Georgia Power to produce at least 6,000 additional megawatts of generating capacity through 2031 and up to 8,500 megawatts if the utility demonstrates a need for it. To help meet that demand, the company plans to continue operating coal-burning plants at Plant Bowen near Cartersville and Plant Scherer near Macon and boost natural gas production at Plant McIntosh near Savannah.

The plan also commits GeorgiaPowertoincreasing its use of renewable energy through new utility-scale and rooftop solar projects as well as battery storage.

'As our state continues to grow and thrive, the approval of this comprehensive plan helps to ensure we have the resources and programs we need to reliably and economically meet the future energy needs of our customers,' Kim Greene, chairman, president and CEO of Georgia Power, said after Tuesday's 5-0 vote.

'I'm grateful to everyone who helped develop this plan and participated in the process over the last six months, and to the Georgia PSC for its careful consideration and approval of a strategy that will help us deliver the energy Georgians need and deserve.'

The company had planned to close all of its coal plants but decided the two Georgia plants and an additional coal plant in Alabama are still needed to help meet an unprecedented increase in generating capacity required to serve the rapid growth of power-hungry data centers springing up across Georgia.

'As data center construction continues in Georgia, this IRP puts us in a safe and secure spot to meet that energy demand,' commission Chairman Jason Shaw said. 'This long-term plan continues to strike a balance between reliability and affordability.'

The PSC passed a rule in January aimed at making sure data centers and other 'large-load' customers pick up the costs of the additional capacity they need rather than pass on those expenses to residential and small-business ratepayers. But legislation that would have given that mandate the authority of state law failed to gain traction in the General Assembly this year.

Two weeks ago, the commission approved Georgia Power's plan to freeze base rates for the next three years. However, the company still will be allowed to recover from customers its storm damage costs from Hurricane Helene as soon as next year.

Environmental groups that have opposed the IRP said Tuesday's vote will drive up electric rates while continued use of fossil fuels will harm both the environment and human health.

'The commissioners' reckless vote today means devastating costs and impacts are coming for the people of Georgia,' said Neil Sardana, senior policy manager for the nonprofit Georgia Conservation Voters. 'In 10 years, bills really could double if we continue down this path.'

Opponents also argued the plan is based on unreliable projections of the need for a huge increase in generating capacity. They cited language in an agreement Georgia Power and the PSC's Public Interest Advocacy Staff reached last week endorsing the IRP that acknowledged the projections used to justify the utility's continued need for fossil fuels are uncertain.

Environmental advocates also charged Georgia Power with violating the terms of a previous agreement by abandoning a pledge to expand 'demandside management' programs through energy conservation initiatives.

'I am shocked that Georgia Power did not honor its commitment and heartbroken the commission did not step up and defend billpayers in this moment,' said Jennifer Whitfield, a senor attorney in the Southern Environmental Law Center's Atlanta office. 'The commission had an opportunity to give this plan a silver lining but insteadleftmeaningfulrelief for Georgians on the table.'