by Dave Williams | May 23, 2025 | Capitol Beat News Service
ATLANTA – Starting May 27, Georgia Power executives will defend the mix of energy resources the utility intends to rely on for generating electricity against critics who say the plan relies too much on fossil fuels and not enough on renewable power.
The state Public Service Commission (PSC) will hold a second round of hearings expected to last several days on Georgia Power’s 2025 Integrated Resource Plan (IRP). The first round of hearings over three days in late March gave company witnesses a chance to outline how they propose to meet a massive increase in demand prompted by the growth of power-hungry data centers across the state.
The new IRP calls for Georgia Power to continue operating coal-burning plants at Plant Bowen near Cartersville and Plant Scherer near Macon, providing about 4,000 megawatts of electricity. A megawatt is enough electricity to power about 750 homes. The Atlanta-based utility also plans to upgrade existing natural gas units.
On the renewable side, the IRP proposes to add 4,000 megawatts of generating capacity from a combination of utility-scale and rooftop solar projects as well as battery storage.
But consumer watchdog and environmental advocacy groups argue Georgia Power could and should add more renewable energy to the utility’s portfolio beyond the 4,000 megawatts and do away with its aging fleet of carbon-emitting coal and gas plants.
“By arbitrarily capping solar development in its Integrated Resource Plan, Georgia Power has sidelined one of the most cost-effective resources available in favor of expensive fossil gas infrastructure,” said Patrick King II, Georgia policy advocate for the Natural Resources Defense Council. “This approach ignores more sensible pathways that would cut emissions, lower financial risk, and save bill payers money.”
But Georgia Power executives say the soaring demand for electricity to serve “large-load” customers including data centers makes retaining the coal and gas plants critical. The 2025 IRP estimates the utility will need an additional 8,200 megawatts of electrical generating capacity during the next six years, an increase of more than 2,200 megawatts above projections in an updated IRP the commission approved a year ago.
“We need these units,” Jeff Grubb, Georgia Power’s director of resource planning, testified during the hearings in March. “They’re an economical way to serve the load growth that we have.”
Grubb warned that if the company doesn’t keep those plants operating, it would need to build more expensive new generating capacity by 2032.
A key disagreement between Georgia Power and the IRP’s critics is over whether the utility really needs that much additional generating capacity.
During cross-examination of Grubb and other Georgia Power executives at the March hearing, energy lawyer Bobby Baker said the utility’s demand forecast has increased 27-fold since 2022.
“Doesn’t that raise some red flags for y’all, an enormous jump?” Baker asked the Georgia Power witness panel. “Hasn’t the company consistently overestimated load growth?”
Baker said the costs of overbuilding generating capacity would fall squarely on Georgia Power customers.
But Fernando Valle, director of forecasting and analytics for Georgia Power, defended the utility’s forecasting track record.
“The load forecast has always incorporated the best available information we have at the time of the forecast,” he said. “Predicting the future is inherently uncertain.”
Grubb said Georgia Power customers also would be on the hook if the company underestimates how much generating capacity will be needed.
“Under-forecasting is a bigger risk than over,” he said. “We don’t want to be short.”
The PSC is scheduled to vote on the proposed IRP on July 15.
by Dave Williams | May 22, 2025 | Capitol Beat News Service
ATLANTA – An early task for Georgia lawmakers in determining how to regulate data centers should be determining how much electricity and water they’re sucking up, the head of a local nonprofit group said Thursday.
“How are you guys supposed to plan for the future if you don’t know what you’ve got right now?” Amy Sharma, executive director of Science for Georgia, told members of a House special committee Speaker Jon Burns created early this year to formulate policies for handling the growing demand for energy and water power-dependent industries including date centers are putting on the state’s resources.
Sharma said the lack of availability of reliable data is forcing “best guesses” on the impacts of the growing number of data centers springing up across Georgia.
According to Science for Georgia’s estimates, there are currently 97 data centers in the Peach State with another 19 announced but yet to be built. Those facilities are using 14,000 megawatts of electrical generating capacity, enough to power 6.3 million homes, and drinking up 27 billion gallons of water each year, enough to serve 560,000 people.
Sharma said Georgia is among the leading states for data centers because it boasts cheap land and cheap water as well as extensive broadband capability. Data centers have become a valuable source of property tax revenue in the areas where they locate.
But unlike manufacturing plants, they are not great job creators, Sharma said.
“They employ less than your average McDonald’s,” she said.
Also on the down side, huge warehouse-size data centers take up a lot of land, added Jennette Gayer, director of Atlanta-based Environment Georgia. The 85 million square feet data centers currently occupy would take up about 1,500 football fields, she said.
Gayer said data centers also are affecting air quality across the state, particularly in metro Atlanta, Augusta, Valdosta, and Northwest Georgia near Chattanooga, Tenn.
Sharma said the tax incentives big tech companies are getting as an enticement to build data centers in Georgia are costing $300 million a year in lost tax revenue.
“We need data centers, and we need AI (artificial intelligence),” she said. “[But] are we willing to incentivize them the same way we would a Hyundai plant?”
Sharma said a major uncertainty hanging over the industry is whether the growth of data centers will continue unabated or whether the current trend of rapid expansion is a bubble that could burst. She said there are already signs of a pause.
“Some of this growth is very speculative,” Sharma said. “They’re not saying they’re quitting. But they’re saying they’re not sure what they’re going to do.”
Rep. Brad Thomas, R-Holly Springs, the special committee’s chairman, said his goals for the panel’s work are long term.
“The purpose of this committee is what do the next 20 years look like,” he said. “A forward-thinking approach really can set up the next generation for success.”
The committee is scheduled to hold several hearings across the state this summer, with separate subcommittees focusing on energy use and water usage.
by Dave Williams | May 22, 2025 | Capitol Beat News Service
ATLANTA – Mercedes-Benz will move up to 500 jobs to an existing facility in Sandy Springs as part of the automaker’s plan to establish its North American headquarters in Fulton County, Gov. Brian Kemp announced Thursday.
The company’s “1MB” facility opened in 2018 and currently supports about 800 jobs.
“We’re excited that a job creator that already has close ties to Georgia is doubling down on the choice and growing their presence here,” Kemp said. “Georgia continues to lead the way in the future of mobility and technical innovation.”
“This strengthens our position for continued growth and reinforces our established commitment to the U.S. market,” added Jason Hoff, CEO of Mercedes-Benz North America. “Bringing our teams closer together will enable us to be more agile, increase speed to market, and ensure the best customer experience.”
The Sandy Springs facility will house the company’s existing sales teams as well as financial services teams and corporate functions.
Also on Thursday, Mercedes-Benz also announced plans to build a state-of-the-art research and development hub near the headquarters facility. The company expects the move to be completed by August of next year.
The Georgia Department of Economic Development’s Global Commerce team worked on the project in partnership with the city of Sandy Springs, the economic development agency Select Fulton, the Metro Atlanta Chamber, and Georgia Power.
by Dave Williams | May 21, 2025 | Capitol Beat News Service
ATLANTA – Georgia Power’s pledge this week to freeze rates for the next three years would benefit both the utility’s customers and bolster the state’s ability to attract jobs and investment, Gov. Brian Kemp said Wednesday.
“This is good news,” Kemp told reporters during a news conference at the state Capitol. “Georgia’s going to be in a great place.”
Kemp appeared with two members of the state Public Service Commission two days after Georgia Power and the commission’s Public Interest Advocacy Staff announced an agreement to hold the line on base rates through 2028. The agreement, subject to the PSC’s approval, would cancel the rate case the company had been planning to submit by July 1.
Georgia Power has raised rates three times in the past three years, a period that has seen a huge increase in demand for electricity sparked in large part by the rapid growth of power-hungry data centers across the state.
“All of our neighboring states are going to have massive increases,” commission Chairman Jason Shaw said Wednesday. “We’ve worked on our grid system so we can handle this growth.”
Wednesday’s news conference took place amid a backdrop of criticism from consumer watchdog and environmental groups that the proposed agreement would not prevent some rate hikes because the deal would allow Georgia Power to recover from ratepayers increased fuel costs and costs associated with Hurricane Helene, which devastated large portions of the southern and eastern halves of the state last September. Under the agreement, the PSC would consider those costs next year.
Shaw, who lives in South Georgia, noted that his region has been hit by hurricanes three times in the last 14 months.
“These are reasonable and prudent expenses,” he said.
Kemp said freezing Georgia Power’s rates would make Georgia more attractive to prospective business tenants.
“This will be a huge talking point as we compete with other states,” he said.
The governor pushed back on arguments from critics that the rate freeze is being timed to coincide with this year’s PSC elections. If the commission approves the agreement, incumbent Commissioners Tim Echols and Fitz Johnson – both Republicans – wouldn’t have to vote on a rate hike before voters decide whether to retain them in office.
“We’re not basing our calendars on when political elections are coming up,” Kemp said.
The PSC will hold a public hearing on the proposed agreement on June 26 ahead of a vote set for July 1.
Commissioner Lauren “Bubba” McDonald appeared with Kemp and Shaw at Wednesday’s news conference.
by Dave Williams | May 20, 2025 | Capitol Beat News Service
ATLANTA – The head of a commercial real estate investment firm has been sentenced to 87 months in prison and ordered to pay $45 million in restitution in a fraud scheme involving the Atlanta Financial Center in Buckhead.
Elchonon (Elie) Schwartz, 46, of New York City pleaded guilty in February to one count of wire fraud. Schwartz convinced more than 800 investors to send him $62.8 million, including $54 million earmarked for the huge office building on Peachtree Road. Instead of using the money for legitimate purposes, he diverted it into buying luxury items for his own use.
“Schwartz’s greed was boundless,” said Theodore S. Hertzberg, interim U.S. attorney for the Northern District of Georgia. “He callously abused the trust of hundreds of investors to line his own bank accounts. … Schwartz’s sentence reflects our office’s commitment to hold fraudsters accountable for exploiting investors who innocently rely on their false representations.”
According to court records, Schwartz set up a crowdfunding website – CrowdStreet Marketplace – that raised nearly $63 million, including $54 million for the Atlanta Financial Center and $9 million for a mixed-use building in Miami Beach. He represented to investors that he would safeguard their funds within segregated bank accounts, would not commingle the investors’ money, and would use the funds only for investment in each property.
Schwartz then directed the money into his personal bank account as well as unrelated commercial real estate investments he controlled, using it to buy luxury watches, invest in stocks and options in a personal brokerage account, and cover payroll expenses for unrelated commercial real estate businesses.
The case was investigated by the FBI with assistance from the Security and Exchange Commission’s Division of Enforcement.
Along with the jail time and restitution order, Schwartz was sentenced to three years of supervised release after he completes his prison term.
