Georgia Power’s Plan for New Generating Capacity Approved by Utility Regulators

Georgia Power Co. has received approval from the Georgia Public Service Commission to expand its electrical generation capacity, despite concerns from environmentalists about the use of fossil fuels. The decision, made by four Republican commissioners with one abstention, allows the utility company to build and purchase more power sources to meet the increasing demand in the state.

The plan put forward by Georgia Power includes a commitment to lower rates for existing customers, with a projected $615 million annual revenue credit towards future rate calculations. This could potentially reduce rates by 1.6%, or $2.89 per month, for a typical residential customer. However, the company has not guaranteed that rates will decrease, as other expenses could impact pricing in the future.

The approval allows Georgia Power to contract for generation from a natural gas plant in Florida and from a corporate sibling in Mississippi. Additionally, the company is authorized to build three new combustion turbines at Plant Yates near Newnan, which could burn natural gas or oil. Critics argue that cleaner and more cost-effective energy sources could have been pursued through a competitive process.

Despite opposition from environmentalists and customer advocates, supporters of the plan emphasize the urgent need for additional generation capacity due to the growing demand, particularly from new users like data centers. The decision has sparked a debate over the balance between meeting energy needs and environmental concerns, highlighting the complex challenges facing the state’s energy sector.