Georgia Public Service Commission Approves Georgia Power’s Major Generation Expansion To Support Data Center Load

Key Takeaways

• The Georgia Public Service Commission (PSC) has unanimously approved Georgia Power Company’s (Georgia Power) plan to add nearly 9,885 MW of new generation capacity, primarily to meet projected demand from data centers and other large loads.[1]
• The proposed build-out is one of the largest electric generation expansions in the United States.
• Construction is estimated at $16.5 billion, although customers could pay $50-60 billion over decades.
• The approval follows months of contested proceedings, expert testimony, and technical filings in PSC dockets concerning the utility’s long-term Integrated Resource Plan (IRP) and related certification requests.
• This approval, formalized through a negotiated stipulation, reflects a regulatory willingness to support significant capacity buildouts while embedding conditions intended to mitigate risks and protect ratepayers.
• The decision is the latest to address the ongoing national debate regarding forecast accuracy, cost allocation, environmental impacts, and the adequacy of consumer protections.
• For large-load customers, the approval signals that power availability in Georgia is being unlocked through regulatory action, while shifting increased attention to how long-term generation costs are allocated and underwritten.

Background

Georgia Power’s 2025 IRP, filed in January and approved in July 2025, projects extraordinary electric demand growth over the next decade, driven largely by data center expansion. The 2025 IRP outlines how the company expects to meet these needs through investments in generation and transmission, including continued integration of renewables and storage resources.

To address projected capacity needs in the 2027/28 through 2030/31 time period, Georgia Power sought PSC certification for approximately 9,885 MW of new resources, about two-thirds of which is comprised of natural gas-fired units, with the rest a blend of battery energy storage systems (BESS) and BESS paired with renewable resources. Georgia Power sought certification for a mix of power purchase agreements (including with its affiliate, Southern Power Company) and Georgia Power-owned resources, all sourced through an “all-source” competitive procurement process.[2]

Stipulated Agreement and PSC Approval 

On December 10, 2025, Georgia Power and PSC Public Interest Advocacy Staff executed a stipulated agreement (Stipulation) outlining terms for certifying all requested capacity, with conditions designed to mitigate customer risk.[3] Importantly, these terms require Georgia Power to:

• Allocate significant costs for the portfolio to large-load customers in its next base rate case, sufficient to “ensure the incremental revenue from large load customers has downward pressure of at least $8.50 per month to the typical residential customer using an average of 1,000 kWh per month for the years 2029, 2030 and 2031.”
• Work with PSC staff to engage current and potential large load customers regarding options for large load flexibility, including “contract terms and cost saving opportunities resulting from flexibility,” and report to the PSC within 120 days of the PSC order on the Stipulation regarding recommendations for any load flexibility programs.

The PSC adopted this agreement on December 19, 2025, authorizing Georgia Power to proceed with procurement and construction for 9,885 MW of new generation capacity.[4]

Primary Concerns Underlying Stipulation

The record before the PSC demonstrated significant concern among PSC staff and ratepayer advocates regarding the durability of Georgia Power’s load forecasts and the associated risk of stranded costs should the forecasted large loads not materialize. Georgia Power’s filings indicated that executed large-load contracts had increased but still represented a relatively small portion of the total projected demand, raising questions about the degree of speculation in the load forecast and the risks of certifying nearly 10 GW of new capacity on this basis.[5] PSC staff filings and hearing testimony warned that much of the requested capacity was driven by speculative load forecasts, based on a pipeline of prospective large customers rather than fully executed contracts, and that over-forecasting could lead to stranded costs from unnecessary generation assets if data center demand does not materialize. Staff recommended certifying a smaller fraction of new capacity (e.g., 30%-40% of the request) and relying more on PPAs rather than utility-owned generation to manage this risk, noting that only a minority of the proposed capacity was supported by executed contracts.[6] These concerns formed the backbone of the contested proceedings and likely shaped the risk-mitigation conditions ultimately embedded in the Stipulation.

Similarly, consumer advocates objected to the scope of the stipulated agreement, arguing that overbuilding could expose residential customers to significant costs if data center demand does not materialize, based on some estimates that suggest that overbuilding could raise rates by approximately $3.4 billion, or about $20 per month per household, absent mitigation.[7] Environmental advocates also criticized the proposal’s reliance on new methane gas units, contending that fossil fuel additions from methane-gas-powered plants undermine climate and public health goals and risk locking in emissions for decades—even as “downward pressure” on bills is temporary and not guaranteed beyond 2031.[8] Broadly, opposition in Georgia is driven by concerns about rate increases, environmental impact, transparency, and how future energy costs and risks are allocated.

Political Context 

The PSC’s vote occurred shortly before newly elected commissioners—who had expressed concerns about the plan’s scope and consumer protections—were scheduled to take office. This timing has been criticized by opponents, who called for a delay to allow broader review, highlighting ongoing tensions around energy policy, rate impacts, and regulatory process.

Implications for Stakeholders

• Utility and energy developers. The approval signals regulatory openness to large, demand-driven capacity expansions but underscores the importance of robust forecast evidence, contract status, and risk allocation in certification proceedings. Political headwinds are swelling, however, and will require renewed focus on cost containment and risk mitigation for residential ratepayers, as well as creative solutions to encourage load flexibility where possible.
• Large power users (data centers and industrial loads). The outcome highlights the need for executed contracts and risk mitigation in large-load negotiations. It remains to be seen how Georgia Power will effectuate the requirement for “downward pressure” on residential rates, and whether creative combinations of cost allocation and load flexibility may arise because of the Stipulation’s requirements. This underscores the importance of evaluating regulatory durability and cost risk alongside interconnection availability when underwriting Georgia projects.
• Environmental and clean energy stakeholders. The decision intensifies debates over fossil fuel generation versus cleaner alternatives and may shape future advocacy around resource planning and climate impacts.

Conclusion

Georgia Power’s approved generation expansion marks a significant regulatory development in response to surging data center demand. While the stipulated agreement includes measures to protect ratepayers, concerns remain regarding forecast reliability, cost allocation, and environmental impacts. Stakeholders should closely monitor the implementation of these projects, the development of load flexibility programs, the impact on customer rates, and potential legal challenges as Georgia’s electricity landscape continues to evolve.

Endnotes

[1] Order Adopting Stipulation and Granting Order Certification of Capacity from the 2029-2031 All-Source RFP and Supplemental Resources for 2028-2031 Capacity) (Dec. 19, 2025) (Final Order), Docket Nos. 56298 (In Re: Georgia Power Company’s Application for the Certification of Capacity from the 2029-2031 All-Source RFP) and 56310 (In Re: Georgia Power Company’s Application for the Certification of Supplemental Resources for 2028-2031 Capacity) (Dec. 19, 2025); Georgia PSC Commissioners Approve Agreement for New Power Infrastructure; see also Georgia PSC approves plan to deliver savings for electric customers, meet energy demands of a growing state.

[2] Georgia Power Company’s Application for the Certification of the All-Source Capacity Power Purchase Agreements and Company-Owned Proposals and Application for the Certification of Supplemental Resources for 2028-2031 Capacity (collectively All-Source Certification Proceeding), Document Filing #223493 and Document Filing #223492 (July 30, 2025).

[3] All Source Certification Stipulation, Docket Nos. 56298 and 56310 (Dec. 10, 2025).

[4] Final Order, Docket Nos. 56298 and 56310 (Dec. 19. 2025). The approved portfolio includes: Company-Owned Projects: 7,065 MW of new resources, including nine standalone BESS projects, two solar-plus-BESS projects, and three combined cycle (CC) units (Bowen Units 7-8, Wansley Units 10-11, McIntosh Unit 12); Power Purchase Agreements: 2,821 MW from a combination of thermal and BESS PPAs, including contracts with NextEra Energy Resources and Tenaska, as well as amendments to existing agreements; Supplemental Resources: Five BESS PPAs paired with existing solar facilities, a new BESS project, and additional thermal capacity.

[5] Rebuttal Testimony of PSC PIA Staff (Nov. 2025) Docket Nos. 56298 & 56310.

[6] Direct Testimony of Robert L. Trokey. In re: Georgia Power Company’s Application for the Certification of Capacity from the 2029–2031 All-Source RFP, Dkt. No. 56298 & In re: Georgia Power Company’s Application for the Certification of Capacity Supplemental Resources, Dkt. No. 56310. Document Filing #224483. 12 Nov. 2025. p.4.

[7] Georgia PIRG Comments Opposing Stipulation. Dec. 2025, Docket No. 56310.

[8] Post-Hearing Brief of Southern Alliance for Clean Energy (SACE) and Sierra Club, Docket Nos. 56298 & 56310 (Dec. 16, 2025); PSC Staff reverses course on data center concerns, endorses Georgia Power’s fossil fuel reliant plan, Southern Environmental Law Center (Dec. 10, 2025).