PSC Approves Rule to Allow New Power Usage Terms for Data Centers

Staff Report From Georgia CEO

Friday, January 24th, 2025

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.

The new rule approved Thursday derives from the Public Service Commission’s decision on the interim Integrated Resource Plan, unanimously approved by Commissioners in April 2024. That docket (55378) added extra capacity to Georgia’s power grid.

The new Georgia Power rule states that any new customers using more than 100 megawatts of energy can be billed using terms and conditions beyond those used for standard customers to address risks associated with these large-load users. In addition to site specific costs, the data centers would pay for costs incurred by upstream generation, transmission and distribution to these large-load power users as construction of the data centers progresses. This protects Georgia Power’s residential and other commercial/industrial customers.

The new rule also allows for longer contract lengths (from 5-year contracts to 15-year contracts) and minimum billing requirements for high-load customers. This helps ensure any new high-usage customers do not shut down and leave the state before paying for new infrastructure built specifically to handle the needs of their businesses.

The rule also states that any new Georgia Power contract with a company that fits the 100 MW usage category must be submitted to the PSC for review.

“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.”

Georgia law requires the Public Service Commissioners to approve all of Georgia Power’s new or amended rules.

“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 is a five-member constitutional agency that exercises its authority and influence to ensure that consumers receive safe, reliable, and reasonably-priced telecommunications, electric and natural gas service from financially viable and technically competent companies. For more information on the Commission, see the Commission website at https://psc.ga.gov