Georgia power rate change approved to address data center energy use

ATLANTA - The Georgia Public Service Commission has approved a new rule allowing Georgia Power to charge new data centers above what normal ratepayers have to pay.

The new rule, which was unanimously approved on Thursday, allows the utility company to bill any new customers that use more than 100 megawatts of energy beyond the cost of standard customers. The data centers would also have to pay for costs for upstream generation, transmission and distribution as construction progresses.

The backstory:

Demand for data centers ballooned in recent years due to the rapid growth of cloud computing and artificial intelligence, and local governments in Georgia and across the country are competing for lucrative deals with big tech companies. 

Nearly 100 data centers are already established in Georgia. The majority of these are in the metro Atlanta area.

But as data centers begin to move into more densely populated areas, some residents are pushing back over concerns about the economic, social and environmental health of their communities.

Last year, the Atlanta City Council approved ordinances prohibiting data centers around the Beltline or within a half-mile of transit centers such as MARTA stations or bus stops.

What we know:

Commissioners say the new rule will protect Georgia Power's residential and other commercial customers from higher rates based on the increased power outage to the overall system.

 "The amount of energy these new industries consume is staggering," said PSC Chairman Jason Shaw. "By approving this new rule, the PSC is helping ensure that existing Georgia Power customers will be spared additional costs associated with adding these large-load customers to the grid."

The new rule also allows longer contract lengths of up to 15 years for these higher-load customers to ensure that the data centers don't shut down while new infrastructure is being built. 

All new Georgia Power contracts with high major energy consumers will also be reviewed by the PSC.

What they're saying:

"Our Commission’s action today protects residential and small business customers from data center load financial impacts," said PSC Vice Chairman Tim Echols. "We want to keep Georgia the best place to do business, but data centers will need to bear the cost of their electricity acquisition."
"This rule is one of several actions the PSC is planning to protect ratepayers on this subject matter," said Commissioner Lauren "Bubba" McDonald. "Data center power usage will be addressed further in the upcoming 2025 Integrated Resource Plan."

The Georgia Public Service Commission voted unanimously on Thursday to approve a new rule that allows Georgia Power to charge new data centers in a manner that will protect ratepayers from cost shifting.