Environmental groups take PSC to court over Georgia Power data center expansion
Environmental and faith groups have escalated their fight against Georgia Power’s data center-driven expansion, asking a court to review whether regulators broke state law by approving the utility’s plan to add a slew of new power resources.
In the petition, the groups argue Georgia Power never proved all of the new power resources were needed, a requirement under state law for the Public Service Commission to approve them. They argue overbuilding for data centers that have not signed contracts with Georgia Power exposes other ratepayers to the prospect of higher bills.
The challenge lodged Wednesday in Fulton County Superior Court was filed by the Southern Environmental Law Center and the Sierra Club. The SELC is representing Georgia Interfaith Power & Light, Park Avenue Baptist Church and the Unitarian Universalist Church of Savannah. The Sierra Club is representing itself in the case, along with the Southern Alliance for Clean Energy and Sierra Club member Adrien Webber.
Their petition names the PSC as the respondent. The commission voted in December to “certify” the company’s construction of eight new gas-burning power plants, plus battery storage systems and some solar. Regulators also gave the utility permission to buy electricity from several existing power plants.
At the time of the unanimous vote to approve, Republicans held all five PSC seats. Since then, two of the PSC’s GOP members were replaced by Democrats, who rode a wave of voter discontent over their high Georgia Power bills to claim seats on the commission.
‘Unnecessary costs’
The expansion that’s being contested is the largest one in Georgia Power’s history.
The PSC’s staff estimated the company will need to collect between $50 billion and $60 billion from customers in the coming decades to pay for the expansion. Certification paves the way for the utility to charge customers for the costs down the line, but Georgia Power has repeatedly vowed that residential customers won’t subsidize the data center build-out.
Webber, a plaintiff in the case, said the PSC’s decision worsens fossil fuel dependence and pollution while adding “unnecessary costs that show up directly on the bills of Georgians.” The majority of the power resources Georgia Power plans to add rely on oil and gas. Burning fossil fuels is the main driver of human-caused climate change.
“We are tired of a Public Service Commission bending and outright breaking its rules and the law to give Georgia Power whatever it wants, no matter the cost to our air and water or the impact on our monthly energy bills,” Webber added.
Tom Krause, the PSC’s public information officer, declined to comment on the petition, citing the commission’s policy not to weigh in on active litigation.
In a statement, Georgia Power spokesperson Matthew Kent said the company is reviewing the petition, but said it does not believe this “positive, constructive plan for Georgia electric customers needs to be reconsidered.”
“The generation resources were properly approved and certified by the Commission. This suit has no merit and is a simple attempt to create economic and regulatory chaos,” Georgia Power said after it had additional time to review the suit.
Kent also pointed to the expansion’s purported benefits.
With the help of extra revenue from data centers, Georgia Power has agreed to put $8.50 in “downward pressure” on the average residential customer’s monthly bills for the years 2029 through 2031. But that doesn’t mean bills will drop — just that they will be $8.50 lower than they otherwise would be.
The SELC, the Sierra Club and their clients already asked the PSC earlier this year to reconsider its approval of the new power plants, but the Republican majority that still controls the commission rejected their request last month.
The petitioners have asked the court to reverse the PSC’s order and require that it reevaluate the evidence presented in the case.
The groups also asked the court to order the commission to decertify at least 757 megawatts of generation capacity, which they argue haven’t been proven necessary. That’s roughly the output of the new gas-burning unit Georgia Power is building at Plant McIntosh outside Savannah. Experts have testified it may be the most expensive gas unit proposed anywhere in the U.S.
It was not immediately clear when the Fulton County Superior Court will decide the case.
Data center, fuel cost uncertainty
If the commission’s vote stands, it will mean Georgia Power has permission to add almost 10,000 megawatts of generating capacity to its grid. That’s the equivalent of adding about nine of the 1,100-megawatt nuclear reactors at Plant Vogtle near Augusta.
The expansion is set to unfold over just five years and is overwhelmingly to generate electricity for data centers. Metro Atlanta remains one of the country’s top destinations for the computer server-filled warehouses, which are used to train artificial intelligence and drive the digital economy.
But a lot has changed since December, when the PSC approved the company’s plans.
The U.S. and Israel attacked Iran, throwing a wrench into global energy supply chains and markets. It’s unclear how long the conflict will last, but some analysts have warned prolonged disruption could weigh down the data center boom, even in the U.S.
A note of disclosure
This coverage is supported by a partnership with Green South Foundation and Journalism Funding Partners. You can learn more and support our climate reporting by donating at AJC.com/donate/climate.
About the Author
Drew Kann is a reporter at The Atlanta Journal-Constitution covering climate change and environmental issues. His passion is for stories that capture how humans are responding to a changing environment. He is a proud graduate of the University of Georgia and Northwestern University, and prior to joining the AJC, he held various roles at CNN.
