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Beginning in January, three of the five officials on the Georgia Public Service Commission will be Democrats. It will be the first time the party has controlled the powerful energy regulation board in 30 years. The commission, which regulates utilities including the state\u2019s largest electric provider, Georgia Power, has come under more scrutiny in recent years due to rising power bills and the high energy demands of data centers.\u00a0<\/p>\n
Now, Democrats plan to focus on affordability, clean energy, and closer scrutiny of Georgia Power.\u00a0<\/p>\n
\u201cThere\u2019s a long laundry list of things that need to be looked into,\u201d said Democratic commissioner Peter Hubbard, who won his reelection bid this week. \u201cAnd so we\u2019ll have to triage, in fact, and decide how best to move forward.\u201d<\/p>\n
One of his first priorities will be launching an affordability docket, he said \u2014 a series of hearings that would delve into the reasons for high power bills and ways to save customers money. Hubbard said he and his fellow Democrats also plan to bring close scrutiny to upcoming Georgia Power requests around making more energy and adjusting customer rates. Shelia Edwards and Alicia Johnson are the other two Democrats on the PSC.<\/p>\n
But any changes, especially to power bills, will likely take time.\u00a0<\/p>\n
\u201cWe may not be able to expect immediate effects on our wallets,\u201d said Emory University associate professor Kristin Phillips, who studies energy burden and the PSC. \u201cBut I think we can expect immediate change in the types of decisions that are made.\u201d<\/p>\n
Affordability and high energy bills were driving issues in the campaigns both this year and last year, the two elections that together resulted in the new Democratic majority on the commission.<\/p>\n
\u201cWe knew that we had to connect the dots between energy and affordability,\u201d said Briont\u00e9 McCorkle of Georgia Conservation Voters, a group that campaigned for the Democratic candidates and worked to draw attention to the PSC elections. \u201cIt\u2019s not just this obscure regulatory body like it used to be treated. Its decisions directly affect household budgets, communities, health, and our energy future.\u201d<\/p>\n
Chris Womack, the CEO of Southern Company, Georgia Power\u2019s parent company, also acknowledged the central importance of affordability during the company\u2019s third-quarter earnings call on Thursday. But Womack said he\u2019s confident the utility can address those concerns with the new commissioners.<\/p>\n
\u201cIf you look at what we have been doing with rate freezes, with benefits, with how we are providing benefits from growth to customers \u2014 existing customers \u2014 as well as to the communities, we think that\u2019s a strong platform to stand on,\u201d he said.<\/p>\n
Since the data center boom in Georgia began, Georgia Power has maintained that the increased revenue would more than pay for the new infrastructure to serve them, which the utility argues would keep rates lower for residential and small business customers. The utility calls this \u201cdownward pressure.\u201d It doesn\u2019t mean rates will go down, but rather that any increases would be offset by the influx of revenue from data centers.\u00a0<\/p>\n
The utility recently doubled down on that promise as part of its deal to serve a massive new OpenAI data center. The deal, Georgia Power said, would bring $15 of not savings but downward pressure per month for what Georgia Power calls the \u201ctypical\u201d residential customer.\u00a0<\/p>\n
Separately, Georgia Power also credited the increased revenue from data centers for the temporary rate freeze approved last year. But the rate freeze received criticism from some advocacy groups. Instead of first holding a PSC hearing to give advocates a chance to verify the utility\u2019s financial claims, Georgia Power announced the temporary rate freeze. Advocates feel that the backward process left them unable to confirm whether the company was delivering on its promises and fully shielding ordinary customers from data center costs.\u00a0<\/p>\n
It\u2019s part of a broader criticism often leveled at the PSC and Georgia Power: lack of transparency. The OpenAI contract was entirely redacted, and only a summary provided to the public after it was approved. Specific details involved in service contracts, deals to buy energy, and construction costs are often redacted from the utility\u2019s public filings under the auspices of trade secrecy.<\/p>\n
\u201cI absolutely think transparency is potentially one of the biggest impacts here,\u201d said Phillips of the election results. \u201cIt has been often on advocates to push on the way that the PSC communicates about the decisions that it\u2019s making, and I\u2019m hoping that there will be more clarity and transparency.\u201d<\/p>\n
The Democrats on the commission have promised to bring increased scrutiny to the next rate-setting process, due in 2028, along with Georgia Power\u2019s long-term plans to make and deliver energy, its forecasts about rising demand, and other issues. Hubbard has also proposed conducting a rate case for the state\u2019s natural gas utilities, which he said hasn\u2019t been done in over a decade. And he said they\u2019ll push for other changes going forward.<\/p>\n
\u201cWe\u2019ll continue with an agenda next year and the year after that to take advantage of this four-year period when we have the majority and can push for long-lasting reforms and shifting the direction of the state in terms of energy,\u201d Hubbard said.<\/p>\n
This article originally appeared in Grist at https:\/\/grist.org\/georgia-psc\/democrats-take-control-of-georgias-powerful-utility-regulator\/.<\/p>\n
Grist is a nonprofit, independent media organization dedicated to reporting on climate change.<\/p>\n
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