Regulators approve plans to build new power plants in Georgia, fueled by growing demand – WABE

Utility regulators on Tuesday approved Georgia Power Co.’s plan to expand its power plant southwest of Atlanta.

The Georgia Public Service Commission voted 5-0 to allow a unit of Atlanta-based Southern Co. to build three new fossil-fuel-fired units at Plant Yates, near Newnan.

The company would not say how much it plans to spend on the plants, which will burn natural gas or diesel fuel to generate electricity. But commission staff said similar plants in other states have cost $800 million or more.

The commission gave the green light to the plant in April when it approved a special plan to expand generating capacity because the utility said demand was growing faster than previous forecasts, driven in part by a boom in computer data centers in Georgia. The utility obtained a permit to build the units themselves, without seeking outside bids to generate the electricity, because its forecasts show it will need more electricity by the end of 2026.

“The short answer is we need to build these units, and we need to do it now,” Georgia Power General Counsel Steve Hewitson said during a committee hearing Thursday.

Typically, commissioners approve Georgia Power’s long-term generation and rate plans once every three years, but this approval came midcycle. Because regular generation and rate plans will be considered next year, customers won’t see any changes to their bills due to Plant Yates until 2026.

Georgia Power customers have seen their bills rise sharply in recent years due to higher natural gas costs, construction costs, including two new nuclear reactors at Plant Vogtle near Augusta, and other factors. The typical Georgia Power residential customer now pays more than $173 a month, including taxes.

Environmentalists and customer advocates have challenged Georgia Power’s ability to build new fossil fuel plants without going through a competitive process. Using these sources would mean Georgia Power emits more climate-changing carbon dioxide than using solar generation, other renewables, and environmental protections.

They also say it exposes customers to the risk of rising natural gas costs, which have been a major component of recent bill increases. The units will primarily run on natural gas, but will switch to diesel when electricity demand peaks and more natural gas can no longer be purchased or delivered through the pipeline.

Curt Thompson, a lawyer representing the Sierra Club and the Southern Alliance for Clean Energy, argued Thursday that Georgia Power should shoulder some of the risk of rising natural gas costs. In Georgia, the company has been allowed to pass on all of the fuel costs for its power plants, including the combustion turbines it wants to build in Yates.

“The utility industry in general, and Georgia Power in particular, has become increasingly dependent on gas,” Thompson said. “The Yates CTs would only deepen that dependence on gas.”

Opponents again asked the commission to wait until bids for power generation are considered, even though commissioners approved Yates’ plan in April

“These resources could prove to be cheaper, cleaner and better suited to the needs of Georgia Power customers,” Thompson said.

Georgia Power has agreed not to charge for turbine cost overruns unless they are caused by factors beyond the company’s “reasonable control.” It is to file progress reports every six months.

The company would not say how much it plans to spend on the plants, which will burn natural gas or diesel fuel to generate electricity. But commission staff said similar plants in other states have cost $800 million or more.

The commission gave the green light to the plant in April when it approved a special plan to expand generating capacity because the utility said demand was growing faster than previous forecasts, driven in part by a boom in computer data centers in Georgia. The utility obtained a permit to build the units themselves, without seeking outside bids to generate the electricity, because its forecasts show it will need more electricity by the end of 2026.

“The short answer is we need to build these units, and we need to do it now,” Georgia Power General Counsel Steve Hewitson said during a committee hearing Thursday.

Typically, commissioners approve Georgia Power’s long-term generation and rate plans once every three years, but this approval came midcycle. Because regular generation and rate plans will be considered next year, customers won’t see any changes to their bills due to Plant Yates until 2026.

Georgia Power customers have seen their bills rise sharply in recent years due to higher natural gas costs, construction costs, including two new nuclear reactors at Plant Vogtle near Augusta, and other factors. The typical Georgia Power residential customer now pays more than $173 a month, including taxes.

Environmentalists and customer advocates have challenged Georgia Power’s ability to build new fossil fuel plants without going through a competitive process. Using these sources would mean Georgia Power emits more climate-changing carbon dioxide than using solar generation, other renewables, and environmental protections.

They also say it exposes customers to the risk of rising natural gas costs, which have been a major component of recent bill increases. The units will primarily run on natural gas, but will switch to diesel when electricity demand peaks and more natural gas can no longer be purchased or delivered through the pipeline.

Curt Thompson, a lawyer representing the Sierra Club and the Southern Alliance for Clean Energy, argued Thursday that Georgia Power should shoulder some of the risk of rising natural gas costs. In Georgia, the company has been allowed to pass on all of the fuel costs for its power plants, including the combustion turbines it wants to build in Yates.

“The utility industry in general, and Georgia Power in particular, has become increasingly dependent on gas,” Thompson said. “The Yates CTs would only deepen that dependence on gas.”

Opponents again asked the commission to wait until bids for power generation are considered, even though commissioners approved Yates’ plan in April

“These resources could prove to be cheaper, cleaner and better suited to the needs of Georgia Power customers,” Thompson said.

Georgia Power has agreed not to charge for turbine cost overruns unless they are caused by factors beyond the company’s “reasonable control.” It is to file progress reports every six months.