Georgia Power has proposed a fossil-heavy resource plan to meet a massive jump in future electricity demand that the utility says is primarily driven by new and expanding data centers. During a hearing last week, several experts testified that Georgia Power is likely overstating its demand forecast. With Georgia Power proposing to delay retiring its old, expensive coal plants and proposing to build many new fossil gas power plants, it is imperative that these decisions be made in the context of a reasonable view of the future.

Under state law, every three years, Georgia Power must show government regulators at the Georgia Public Service Commission (PSC) its plan to meet electricity demand over the next 20 years. The Commission then must either approve, deny, or amend what is typically a multi-billion-dollar plan that ultimately shows up on your electric bill. Georgia Power’s profits depend on the amount of spending approved in the plan. This year, the review is particularly important because customer bills have already skyrocketed due to two new nuclear plants and high fossil fuel prices. 

In its new plan this year, Georgia Power told state regulators that its customers would need a 50% increase in power in just six years, requiring a historically massive buildout of new power plants. For the last fifteen years, despite economic and population growth, most utilities around the country have seen slow or flat demand growth because appliances have become more efficient and now use less energy.  

In a hearing to review the plan, multiple experts testified that Georgia Power’s forecast is highly unlikely, even with expected growth in huge new computer data centers. Why is this so important? Because if the Commission approves the plan and the projected new demand doesn’t show up exactly as Georgia Power expects, existing customers will have to pay for billions of dollars of unneeded power plants. 

Huge Projected Computer Data Center Expansion Would Increase Fossil Fuel Usage

In order to power the projected electricity demand from huge new computer data centers, Georgia Power proposes to keep its old, inefficient coal-fired power plants (over 4,000 MW of coal-fired capacity) operating through the mid-2030s, when some will be over 60 years old. These plants have emitted an average of 10 million metric tons of carbon dioxide per year over the past few years. In previous Georgia Power resource plans, these plants were going to retire to reduce costs and health impacts. 

Georgia Power also proposes to double down on building many new gas-fired power plants (8,000-9,000 MW of gas-fired capacity) that would make the state’s economy fundamentally dependent for another fifty years on out-of-state oil and gas drilling. We estimate that the new gas power plants alone are likely to emit over 16 million metric tons of carbon dioxide emissions per year for decades. 

The coal and gas power plants would be by far the largest source of air pollution in the state, spewing tiny, toxic particles that cause heart attacks, asthma, and climate change.  

Experts Decry High Electricity Demand Forecast

Seven highly qualified experts hired by different interests disagreed with Georgia Power’s assumptions around demand forecast driven by data center expansion, and none endorsed them. For instance, a national electric reliability expert hired by SACE, NRDC, and Sierra Club testified that Georgia Power’s forecast was “malpractice.” Even the PSC’s own staff poked holes in Georgia Power’s demand forecast.

Expert witnesses Stenclik, Richwine, and Goulding; sponsored by SACE, NRDC, and Sierra Club:

Here is a list of the witness panels that had broad or specific issues with the demand forecast, and timestamps for the hearing video so you can listen to their critiques yourself.

• PSC Staff Witnesses Trokey, Pol, and Dugan: Day 1 0:58-2:39
• PSC Staff witnesses Sandonato, Wellborn, Hayet, and Newsome: Day 1 3:30-5:39
• Expert witness Roumpani; sponsored by Georgia Conservation Voters Education Fund; Day 2 0:18-0:57
• Expert witnesses Hotaling, Patel, Sherwood; sponsored by GIPL and Southface; Day 3 0:51-2:12
• Expert witnesses Stenclik, Richwine, and Goulding; sponsored by SACE, NRDC, and Sierra Club; Day 3 2:14-3:43

Next in the process, Georgia Power will file rebuttal testimony and have a hearing for that rebuttal. Intervenors and Georgia Power will then file final briefs, and the Georgia PSC will decide what to do with this IRP in July. The PSC is an elected body that oversees the work of utilities in the state. Georgia Power, which generates over $7 billion in revenue annually, is the only electric utility regulated by the PSC in Georgia.