Advocates question fuel rates amid data center boom

Georgia Power, the state's largest electric utility, has proposed lowering its fuel rates, which would result in a small reduction in customer bills. However, during recent hearings before the Georgia Public Service Commission, consumer and environmental advocates expressed significant concern that this new rate structure could unfairly burden ordinary customers with the costs of providing electricity to large data centers. According to Public Service Commissioner Peter Hubbard, a key question is whether data centers are adequately paying for the enormous energy demands they create. Georgia Power is investing an estimated $15 billion in new infrastructure, including power plant expansions and storage batteries, largely to meet a projected surge in electricity demand driven by data center development. While the utility maintains that large users like data centers pay their fair share and help keep rates down for others, advocates argue existing protections are insufficient. Specifically, critics worry that the proposed fuel rate includes new firm transportation costs for natural gas delivery, which are necessary to support new turbines planned primarily for data centers. They contend that residential and small business customers would subsidize these costs, even though large commercial customers pay their fuel costs differently, often in real-time. The commission's public interest advocacy staff has recommended an investigation into large commercial rates and potential changes to how these customers are billed for fuel. They also suggested denying over $10 million in fuel costs related to power plant outages. The commission is expected to vote on the fuel cost proposal and storm recovery costs later this month.