PSC staff disputes Georgia Power generating capacity request
Published 5:00 pm Tuesday, May 27, 2025
ATLANTA – Georgia Power has overestimated how much additional electrical generating capacity it will need to meet the demands of data centers, representatives of the state Public Service Commission’s Public Interest Advocacy (PIA) Staff testified Tuesday.
But those witnesses also supported the Atlanta-based utility’s plan to continue operating two of the company’s coal-burning power plants at Plant Bowen near Cartersville and Plant Scherer near Macon as well as upgrading existing natural gas units.
Tuesday’s testimony came as the commission opened a second round of hearings on Georgia Power’s 2025 Integrated Resource Plan (IRP) outlining the mix of energy resources the utility plans to rely on for power generation in the coming years.
The rapid growth of both data centers and cryptocurrency mining operations across Georgia is spurring expectations of a huge increase in demand for electricity. In its 2025 IRP, Georgia Power is forecasting a need for 13,140 megawatts of additional peak generating capacity, mostly from “large-load” customers including data centers.
A megawatt is enough electricity to power about 750 homes.
But the utility hasn’t produced adequate evidence to support such a massive increase, Rob Trokey, director of the PSC’s Electric Unit, testified.
“The company has not provided empirical evidence suggesting that data centers or cryptocurrency customers are likely to materialize at a higher rate than other industrial customers,” he said.
“If the commission approves Georgia Power’s current load forecast … that would lead to over-procurement, potentially including the risk of keeping coal longer,” added Isabella Ariza, a lawyer representing the Sierra Club and the Southern Alliance for Clean Energy.
The PIA Staff is recommending that the commission reduce Georgia Power’s load forecast by 2,000 megawatts.
But Brandon Marzo, a lawyer representing Georgia Power, said the staff’s analysis did not take into account three data center projects that have broken ground in Georgia that will add 3,721 megawatts of generating capacity.
“All of these data centers are in development,” he said. “Staff is proposing to make a 2,000-megawatt adjustment to the forecast, which could have a horrific impact if wrong.”
“They have made an investment,” Commissioner Tricia Pridemore added. “They have secured the capital. Why is it that the opinion of the staff is they’re not going to materialize?”
Trokey responded that the staff does believe substantial growth in demand by data centers will occur in Georgia. But he said the staff isn’t forecasting that demand will increase as much as Georgia Power is predicting.
“We’ve seen some data centers pull back in certain regions,” he said.
While the PIA staff’s recommendation to reduce Georgia Power’s load forecast is supported by consumer watchdogs and environmental advocates, staff witnesses backed up the utility’s plan to continue using fossil fuels to generate power.
“This option would allow the company to continue operating an existing resource and maintain fuel diversity as well,” said Anthony Sandonato, an independent contractor retained by the staff.
Jennifer Whitfield, a lawyer representing Georgia Interfaith Power & Light and the Southface Institute, suggested Georgia Power could save customers billions of dollars by retiring the two coal plants.
Energy lawyer Bobby Baker argued the utility doesn’t need to nearly double its current generating capacity over just the next eight years, calling it a “historic” expense that wouldn’t benefit Georgians.
“Why not put (data centers) in Virginia or Texas?” he asked. “They don’t bring anything to Georgia. They serve international customers.”
But David Hayet, a member of the PIA staff, said the huge increase in capacity Georgia Power is seeking would be offset in part when some of the company’s power-generating assets are taken offline.
“There are going to be retirements,” he said. “There are also going to be transactions that are going away, thousands of megawatts.”
The hearings will continue on Wednesday and possibly extend into Thursday. The PSC is scheduled to vote on the Georgia Power IRP on July 15.