Data Rates Legislation SB 34: Q&A

Why should data centers pay for generation built to meet their needs?

• In October 2024, Bain & Company announced the results of a study that data center load would drive an extraordinary rise in electricity bills absent swift action. On December 6, 2024, the AJC published an essay written by Georgia PSC Bobby Baker that data centers (industrial) rates do not include capital costs, unlike residential rates.
• Data centers are largely owned by Microsoft, Amazon, Meta, and other large, wealthy corporations with billions of dollars in annual profits. The average annual income in Georgia is $52,000 and Georgia Power bills are already fifth highest in the nation.

The Georgia legislature has authorized the Public Service Commission to make rate case decisions. Why is this legislation needed?

• Between 2010 and 2023 the Georgia Public Service Commission increased residential rates 56.8%, nearly twice the rate of inflation of 31.6%.. 
• Between 2010 and 2023 the Georgia Public Service Commission increased industrial rates 6.1%, five-fold lower than the rate of inflation.

Georgia Power is a monopoly granted to them by the people of Georgia through the state legislature, and dozens of laws set forth requirements for how the states wants energy regulated. Why draw the line in front of data centers when substantial harm to small customers has already taken place, and is accelerating? This is especially true without a Consumer Utility Counsel in place to represent and lobby for their interests.

Hasn’t the PSC already adopted rules that data centers must pay for generation? 

• PSC rules can be changed in 30 days when public attention has turned away, 
• And the rules allow flexibility in whether such costs will actually be charged.