Public Service Commission approves Ga. Power request for more fossil fuel use, more batteries (2024)

ATLANTA — The Georgia Public Service Commission voted Tuesday to approve a plan by Georgia Power that would let them expand their fossil fuel use and increase battery storage capacity. While the vote happened, the decision was not unanimous. Four of five commissioners approved the plan.

While the commission did approve an expansion on how much it can increase, via installations, it was only approved to own and operate half of what it had requested. Georgia Power asked for approval to get 1,000 megawatts of capacity for its battery storage, and PSC only approved 500.

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Instead, the commission is requiring Georgia Power to solicit bids for the remaining 500 MW requested, which would then need to be approved by PSC.

The PSC did approve a request to let Georgia Power purchase electricity from Mississippi Power’s coal-fired power plant, with the trade-off that it has to use an expected increase in revenue to lower monthly bills for residential customers.

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The fifth commissioner, Bubba McDonald, abstained from the vote simply voting “present” rather than “yea” or “nay” after an amendment he introduced to wait until after the 2024 presidential election failed to pass.

McDonald’s amendment cited an “unclear” energy policy as it relates to fossil fuels, depending on who is president in 2025.

After the vote, Commissioner Fitz Johnson made a statement telling the power company that he, and Georgia residents, were concerned about future costs.

“Our ratepayers cannot continue to see rate hikes. That message needs to go back loud and clear. I want you to understand that to continue to help those in need, but the overall rate base, the overall ratepayers are tired OK, and I know it’s a delicate balance, Georgia is doing, you know it’s the No. 1 state to do business, there’s a reason for that, Governor Kemp and his staff have done a great job of bringing economic development here, we need to continue to see that, that’s all, it benefits us all, but the ratepayers are weary, I want you to make sure you to understand that with 2025 coming up that this commissioner is very concerned about the rate hikes,” Johnson said.

Following the vote, Georiga WAND, a nonprofit focused on environmental justice, said the approval meant increased rates and pollution for Georgia residents.

“Georgia Power’s 2023 Integrated Resource Plan Update hearings concluded today, promising another round of rate increases and the continued reliance on fossil fuels for energy generation. Through a settlement reached earlier this month, it was established that the result of this IRP hearing process would be an approval of ongoing dependence on fossil fuels like coal and oil as well as methane as a primary fuel source with the approval of combustion turbines (CTs) at Plant Yates, and the reduction of solar capacity by the utility, despite Georgia Power’s initial proposal for including more solar,” Georgia WAND said in a statement.

For a full breakdown of the agreement between Georgia Power and the Georgia Public Service Commission, the documents are available from the PSC Docket online.

In response to Channel 2 Action News, Georgia Power’s CFO provided the following response:

“At Georgia Power, our customers are at the center of everything we do, and we are unwavering in our commitment to provide them with clean, safe, reliable and affordable energy,” said Aaron Abramovitz, chief financial officer for Georgia Power. “The stipulated agreement benefits all customers, and approval of this agreement will preserve and protect the reliability and quality of electric service our customers expect and supports the continued economic development of our state – all while placing downward pressure on rates for all customers.”

A statement from the company following the vote said “The 2023 IRP Update is projected to provide over $500 million of net benefit for customers for 2026 through 2028,” with the expectation that retail rate would be pushed lower during the company’s next rate case filing.

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