COLUMBUS, Ga. (WRBL) — In a move to bolster the state’s energy infrastructure, the Georgia Public Service Commission has given the green light for Georgia Power to significantly expand its electricity generation and storage capabilities. The unanimous decision will see an addition of nearly 9,900 megawatts to the grid, a step deemed crucial to accommodate the rising energy demands, particularly from burgeoning data centers.

The expansion plan is a strategic response to Georgia’s burgeoning population and economic development, ensuring the power grid remains robust and reliable. Georgia Power’s strategy includes a diverse energy mix, featuring new natural gas plants, sophisticated battery energy storage systems, and solar power agreements.

Matthew Kent, a spokesperson for Georgia Power, announced, “The commission’s approval allows us to move forward with the construction of approximately 9,900 megawatts of new generation and storage capacity, ensuring we can adequately serve our Georgia customers.”

Furthermore, Georgia Power has committed to a financial arrangement affecting future rates as part of its base rate case. The company has pledged to leverage revenue from major energy-consuming entities, such as data centers, to exert “downward pressure” on energy costs. This means that these large users will shoulder more of the cost burden, potentially easing what residents pay.

However, any changes in residential rates are not expected to take effect until 2028, thanks to a rate freeze that was put in place earlier this year, which will remain for the next three years.

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“In 2028, when Georgia Power goes back for a rate case, this agreement… will guarantee $8.50 per month or $102 a year of downward pressure in savings for Georgia customers,” Kent said.

The company says those protections are possible because large-load customers are required to sign long-term contracts, pay upfront infrastructure costs, and meet minimum usage requirements under rules approved by the commission earlier this year.

During public hearings, opponents questioned whether projected demand from data centers would fully materialize and warned that if it does not, existing customers could still bear some of the costs of overbuilding.

“Any meaningful overbuild could easily result in rate impacts several times larger than the projected eight-and-a-half dollars of downward pressure,” said Dr. Josh Tolbert, a Georgia resident and professional engineer, during public comment.

Other speakers criticized the commission for voting before two newly elected commissioners take office in January.

Environmental advocates also raised concerns about the inclusion of new natural gas generation, arguing it could worsen climate impacts.

“You are approving a historic expansion of the power grid and fossil fuel production,” said Fulton County resident Zak Norton. “When top climate scientists tell us that we need to rein in fossil fuel capacity.”

Georgia Power says only a portion of the new capacity will rely on natural gas and that most of the expansion will involve storage and renewable-related resources. The company will continue filing quarterly large-load forecasts with the commission, allowing regulators to slow or scale back the buildout if projected demand from data centers does not occur.