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Natural gas turbines, batteries and some solar energy are included in a large expansion of utility power generation capacity.
Image source: Hyosub Shin
Georgia's Power proposes an unprecedented 10,000 megawatt expansion in about five years. (Hyosub Shin/AJC 2015)
Georgia Power plans to build new gas installations, battery storage systems, and add some solar power, as part of its historical expansion of its fleet of generations, which the company says mainly needs to be provided for data center attacks.
The utility is proposing an unprecedented 10,000 megawatt expansion in about five years.
Georgia's Power said the increase in sales to data centers could cause “downward pressure” for residential customers. But environmentalists and consumer advocates say planned investments, especially in new gas plants, are risky for existing customers and the planet.
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Details of the company's long-awaited plans were revealed in regulatory filings late Wednesday.
The plan is far from finalized. The company needs the Public Service Commission to “certify” the new power supply to allow it to establish a new unit, execute an agreement to purchase power from a third party, and charge a fee for the customer later.
“The various resource portfolios we propose to the Georgia PSC will help us meet Georgia's growing demand for reliable and resilient energy while delivering long-term value to all of our customers,” Rick Anderson, senior vice president of Georgia Power, said in a statement.
Georgia Electric Power wants to build new gas installations at its existing plants, including Plant Bowen near Cartersville. (Hyosub Shin/2019)
Georgia Power's requirements include two parts.
The first is a proposal to spend roughly $15 billion to add about 8,000 megawatts of power between 2028 and 2031. To get there, the utility wants to build new gas-fired units at existing Georgia Power plants, including: Plant Bowen near Cartersville, Plant Wansley outside Newnan and Plant McIntosh near the Georgia-South Carolina border.
Georgia Electric also wants to license electricity from other gas plants in Georgia and Alabama and is seeking to install battery storage systems in nine locations across the state. Among the other two, the company hopes to pair the battery with a solar array.
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The second component is a requirement to add about 2,000 megawatts of electricity, which it says is needed in winter 2027. It determines that the power supply supply fill requires more battery storage, plus the power generated by two existing gas plants. It is not clear how much the second part of the proposal might cost.
Atlanta Diary Constitutional Analysis shows that about 58% of the new proposed power will come from gas units.
Power transport and combustion gases add effective greenhouse gases to the atmosphere, thus contributing to global warming. Natural gas is also susceptible to price fluctuations, and critics say investments in new plants, which may stay in service for 45 years or more, expose customers to market volatility.
“The more we invest in fossil fuels, the more uncertain the client's bills are,” said Jennifer Whitfield, a senior attorney at the Southern Environmental Law Center. “If methane gasoline prices soar, customers will be stabbed by Bill nails again.”
The company said it seeks to add electricity resources is selected through a competitive bidding process supervised by independent evaluators. But AJC analysis shows that nearly 80% of the proposed additives will be built and owned by Georgia Power, or purchased from existing factories owned by its parents, Southern.
As a monopoly utility, Georgia's power can guarantee a return on investment in infrastructure such as new power plants, transmission lines, etc.
In a company-approved remote energy program approved by the PSC in July, commission staff provided a green light to Georgia Power in search of adding new power capacity of 6,000 to 8,500 megawatts.
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Georgia's power has faced questions about whether its electricity demand forecast is too optimistic and whether all the assets it seeks are necessary. The utility insists on using the best modeling, but must submit updated forecasts in the coming months to support its request.
It is not clear that Georgia Power's plan will eventually cost non-DATA center customers.
The utility and PSC have committed to getting the data center to pay its due share and believe the guardrail is in place to ensure that this happens.
Credits: Miguel Martinez-Jimenez
Aerial view captures a large area of a new data center campus near Fayetteville. Georgia's Power said the increase in sales to data centers could cause “downward pressure” for residential customers. (Miguel Martinez/AJC)
Still, it may be 2028 until the full expansion costs of residential customers begin to focus. Earlier this summer, the PSC voted to keep Georgia's power's interest rates stable for the next three years. This prevents the possibility of an upcoming rate hike, but also means the commission will abandon the “rate case” planned for this year.
These procedures involve a thorough review of the company's finances. Without them, some consumer advocates fear that customers will soon be blinded by more growth.
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“Without this transparency, I’m worried that this could lead to a significant increase in customers’ electricity bills in just a few years,” said Liz Coyle, executive director of the nonprofit Georgia Observatory of Consumer Protection.
Several rounds of hearings are expected for the program, but the PSC will not vote on the program until the November 4 election will be held in two of the committee’s five seats.
Disclose notes
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Drew Kann is a reporter for the Atlanta Magazine Constitution, covering climate change and environmental issues. His passion is to capture the story of how humans deal with changing environments. He is a proud graduate of the University of Georgia and Northwestern University, and he held various positions at CNN before joining AJC.
Drew Kann is a reporter for the Atlanta Magazine Constitution, covering climate change and environmental issues. His passion is to capture the story of how humans deal with changing environments. He is a proud graduate of the University of Georgia and Northwestern University, and he held various positions at CNN before joining AJC.