The Georgia Public Service Commission (PSC) has approved a groundbreaking rule that impacts large-load customers, including data centers, using over 100MW of electricity. This new regulation mandates that such customers pay for the transmission and distribution costs associated with their energy use, a move aimed at addressing the significant demand these industries place on Georgia Power’s grid.
Key Provisions of the New Rule for Data Centers
Under the newly approved rule, data centers and other large-load customers will now bear the cost of transmission and distribution infrastructure required for their operations. This means that, as construction progresses, data centers will be responsible for paying for the network enhancements that support their growing energy consumption.
This shift is expected to ensure that existing Georgia Power customers are not burdened by the additional costs incurred from integrating these massive energy demands into the grid.
PSC Chairman’s Statement on the New Rule
“The amount of energy these new industries consume is staggering,” said PSC Chairman Jason Shaw. He emphasized that this rule is designed to protect the broader population of Georgia Power customers from potential rate increases tied to the large-scale power usage of new industries, such as data centers. The ruling comes as Georgia Power anticipates a significant increase in electricity demand over the coming years.
The Growing Demand for Electricity in Georgia
In line with Georgia Power’s forecast, the state’s electricity demand is expected to triple over the next decade, a projection that has led to an expansion of its development pipeline. The utility’s planned capacity jumped from 12GW to 36.5GW in 2024, with data centers alone accounting for a staggering 34.6GW of expected demand.
The Impact of Data Center Growth on Georgia’s Grid
Data centers, which are crucial to the state’s growing tech industry, are key contributors to the rising demand for electricity. Georgia Power is actively working to accommodate these needs by securing commitments from 70 data center facilities. Among the most notable is Stream Data Centers’ planned 49,300 sq ft (13,870 sqm) campus in Douglas County, set to bolster the sector’s infrastructure in the Atlanta region.
PSC’s Role in Overseeing New Contracts
As part of the rule change, new contracts between large-load customers and Georgia Power will now be subject to PSC review. This review process aims to ensure that the utility can meet the increasing demand without negatively impacting the grid or existing customers.
Georgia Power’s Strategy to Meet Future Demand
To address the rapid growth of data centers and other energy-intensive industries, Georgia Power has obtained PSC approval to expand its generation capacity. The utility plans to increase its reliance on both fossil fuels and renewable energy sources by 2025, striking a balance between meeting demand and maintaining sustainability.
FAQs About the New Georgia PSC Rule
How will the new rule affect data centers in Georgia?
The new rule requires data centers to pay for the transmission and distribution costs associated with their electricity usage, which helps ensure that existing Georgia Power customers are not burdened with these additional costs.
What is the reasoning behind this new rule?
The rule aims to address the rapid growth in electricity demand from data centers and other large industries, ensuring that the grid can handle the additional load without imposing higher costs on existing customers.
Will this rule impact other large industries in Georgia?
Yes, the rule applies to all large-load customers, including data centers, that use over 100MW of electricity, ensuring that they bear the costs of infrastructure upgrades needed to support their energy consumption.
How will Georgia Power manage the increase in demand?
Georgia Power plans to expand its generation capacity by increasing its reliance on both fossil fuels and renewable energy sources, ensuring the grid can support the projected rise in demand from large industries.
When will Georgia Power’s new Integrated Resource Plan be filed?
Georgia Power is expected to file its latest Integrated Resource Plan later this month, outlining strategies for meeting the growing energy needs of the state, including data centers.
