by Dave Williams | Jul 16, 2025 | Capitol Beat News Service
ATLANTA – The “Big Three” bond rating companies again have given Georgia the highest rating of AAA, praising the state’s commitment to fiscal responsibility and record of economic growth and job creation.
“The ‘AAA’ long-term rating reflects our view of Georgia’s demonstrated resilient budgetary performance across credit cycles, coupled with responsible fiscal management that has enabled the state to make timely adjustments to general fund expenditures,” wrote S&P Global Ratings, which gave Georgia its highest credit score along with Moody’s and Fitch Ratings.
“The rating also incorporates our view of the state’s favorable population growth trends, and ability to attract diversified business developments and expansion within Georgia’s already large and diverse economic base, and our expectation that the state’s annual growth rates will match or be slightly above that of the nation.”
Sitting on a bulging budget surplus, Gov. Brian Kemp and Georgia lawmakers for the second year in a row were able to fund building projects with cash rather than general obligation bonds.
“Georgia continues to be a safe and stable bet for job creators,” Kemp said Tuesday. “That’s why we continue to see record investment and economic development, and it’s one of the many reasons we are well-positioned to save Georgia taxpayers millions of dollars with low-interest borrowing rates in the years to come.”
However, storm clouds are looming on the horizon in the form of the federal budget bill the Republican majorities in Congress passed two weeks ago, which slashes spending by about $1.5 trillion to help offset the revenue hit of a $4 trillion tax cut.
With states potentially facing huge losses in federal assistance, Kemp ordered state agencies last week to maintain current levels of spending in both their fiscal 2026 mid-year and fiscal 2027 budget requests.
by Dave Williams | Jul 15, 2025 | Capitol Beat News Service
ATLANTA – Clean-energy advocate Peter Hubbard captured the Democratic nomination for a seat on Georgia’s energy-regulating Public Service Commission (PSC) Tuesday.
Hubbard defeated former Atlanta City Councilwoman Keisha Sean Waites with 58.2% of the vote to 41.8% for Waites in Tuesday’s runoff election, according to unofficial results. He will face incumbent Republican Commissioner Fitz Johnson in November in PSC District 3, which covers Fulton, Clayton, and DeKalb counties.
Waites was the top vote-getter in a three-way race in last month’s Democratic primary, with Hubbard coming in second. While neither candidate received the 50%-plus-one vote margin needed to win the primary outright, third-place finisher Robert Jones, a former utility executive, was eliminated.
Hubbard is an advocate for the nonprofit Georgia Center for Energy Solutions. In that role, he has served as an intervenor calling for reducing the use of fossil fuels in the production of electricity, which is expensive, pollutes the air and harms human health.
Waites served three terms in the state House of Representatives before being elected to the Atlanta City Council in 2021. Before entering city and state politics, she spent 15 years working in the federal government, with the Small Business Administration and the Federal Emergency Management Agency.
The nonprofit group Georgia Conservation Voters congratulated Hubbard Tuesday night on his victory.
“We endorsed Peter because he knows how to bring bills down,” said Connie Di Cicco, the group’s political director. “When we talk to voters about a candidate, they ask two questions: Are they qualified, and will they fight for me? With Peter, the answer to both is yes.”
Gov. Brian Kemp appointed Johnson to the commission in 2021 to fill a vacancy, so this year will mark the first time he has faced Georgia voters.
Both the 2022 and 2024 PSC elections were postponed pending the outcome of a lawsuit that challenged the way commissioners are elected. Voting rights advocates argued that choosing members of the PSC statewide rather than by districts dilutes Black voting strength in violation of the 1965 federal Voting Rights Act.
A federal appeals court ruled against the plaintiffs in the lawsuit, leaving the system of statewide PSC elections intact.
Two seats on the commission will be on the ballot this fall. Besides the District 3 contest, incumbent Republican Commissioner Tim Echols is seeking reelection in District 2 against Democratic challenger Alicia Johnson. District 2 stretches from Atlanta’s eastern and southeastern suburbs to Savannah.
by Dave Williams | Jul 15, 2025 | Capitol Beat News Service
ATLANTA – Georgia energy regulators Tuesday unanimously approved Georgia Power’s plan to keep burning coal and gas to generate electricity, a move critics warned will increase rates to meet the unsubstantiated needs of data centers.
The state Public Service Commission (PSC) signed off on the Atlanta-based utility’s 2025 Integrated Resource Plan (IRP), outlining the mix of energy sources the company intends to rely on for power generation during the coming years. Although Tuesday’s vote took place with virtually no discussion, it followed months of hearings on the plan, which Georgia Power submitted in January.
The IRP authorizes Georgia Power to produce at least 6,000 additional megawatts of generating capacity through 2031 and up to 8,500 megawatts if the utility demonstrates a need for it. To help meet that demand, the company plans to continue operating coal-burning plants at Plant Bowen near Cartersville and Plant Scherer near Macon and boost natural gas production at Plant McIntosh near Savannah.
The plan also commits Georgia Power to increasing its use of renewable energy through new utility-scale and rooftop solar projects as well as battery storage.
“As our state continues to grow and thrive, the approval of this comprehensive plan helps to ensure we have the resources and programs we need to reliably and economically meet the future energy needs of our customers,” Kim Greene, chairman, president and CEO of Georgia Power, said after Tuesday’s 5-0 vote.
“I’m grateful to everyone who helped develop this plan and participated in the process over the last six months, and to the Georgia PSC for its careful consideration and approval of a strategy that will help us deliver the energy Georgians need and deserve.”
The company had planned to close all of its coal plants but decided the two Georgia plants and an additional coal plant in Alabama are still needed to help meet an unprecedented increase in generating capacity required to serve the rapid growth of power-hungry data centers springing up across Georgia.
“As data center construction continues in Georgia, this IRP puts us in a safe and secure spot to meet that energy demand,” commission Chairman Jason Shaw said. “This long-term plan continues to strike a balance between reliability and affordability.”
The PSC passed a rule in January aimed at making sure data centers and other “large-load” customers pick up the costs of the additional capacity they need rather than pass on those expenses to residential and small-business ratepayers. But legislation that would have given that mandate the authority of state law failed to gain traction in the General Assembly this year.
Two weeks ago, the commission approved Georgia Power’s plan to freeze base rates for the next three years. However, the company still will be allowed to recover from customers its storm damage costs from Hurricane Helene as soon as next year.
Environmental groups that have opposed the IRP said Tuesday’s vote will drive up electric rates while continued use of fossil fuels will harm both the environment and human health.
“The commissioners’ reckless vote today means devastating costs and impacts are coming for the people of Georgia,” said Neil Sardana, senior policy manager for the nonprofit Georgia Conservation Voters. “In 10 years, bills really could double if we continue down this path.”
Opponents also argued the plan is based on unreliable projections of the need for a huge increase in generating capacity. They cited language in an agreement Georgia Power and the PSC’s Public Interest Advocacy Staff reached last week endorsing the IRP that acknowledged the projections used to justify the utility’s continued need for fossil fuels are uncertain.
Environmental advocates also charged Georgia Power with violating the terms of a previous agreement by abandoning a pledge to expand “demand-side management” programs through energy conservation initiatives.
“I am shocked that Georgia Power did not honor its commitment and heartbroken the commission did not step up and defend billpayers in this moment,” said Jennifer Whitfield, a senor attorney in the Southern Environmental Law Center’s Atlanta office. “The commission had an opportunity to give this plan a silver lining but instead left meaningful relief for Georgians on the table.”
by Dave Williams | Jul 15, 2025 | Capitol Beat News Service
ATLANTA – Gov. Brian Kemp is ordering state agencies to hold their spending at current levels during this fiscal year and fiscal 2027.
“While the governor remains committed to meeting the needs of our growing state, conservative fiscal management means prioritizing spending to live within our means and keeping more tax dollars in the pocketbooks of our citizens,” Rick Dunn, director of the Governor’s Office of Planning and Budget (OPB),” wrote state agency heads in letter dated last Friday.
Kemp’s order comes amid uncertainty over the potential impacts of President Donald Trump’s budget bill on states. The Republican-controlled Congress passed legislation July 3 containing about $1.5 trillion in spending reductions aimed at partly offsetting a $4 trillion tax cut Democrats argue will primarily benefit the wealthy. Those cuts are expected to filter down to the state and local levels of government, affecting among other things health-care services and education programs.
Dunn’s letter calls on state agency heads to develop plans for dealing with potential losses in federal funding.
“While we believe our current revenue projections are sufficient to meet our spending requirements, prudent fiscal management requires that agencies be prepared if conditions were to change,” the budget director wrote. “We are asking that all agencies internally prepare thoughtful plans for a state funds holdback contingency as we continue to monitor economic trends and policy changes at the national level.”
There will be some wiggle room in the governor’s order. Agencies with “mandatory” needs that cannot be met by redirecting fund from the current fiscal year without hurting service delivery will be allowed to discuss those needs with the OPB.
Some legislative Democrats are calling on Kemp to call a special session of the General Assembly to consider providing state funds to fill the gaps caused by federal spending reductions. However, the Republican governor thus far has shown no inclination to reconvene lawmakers under the Gold Dome before the start of the 2026 legislative session in January.
The state began fiscal 2026 July 1 with a budget of $37.7 billion. State agency heads must submit their spending requests for the 2026 mid-year budget and the fiscal 2027 spending plan by Sept. 5.
by Dave Williams | Jul 14, 2025 | Capitol Beat News Service
ATLANTA – The Georgia Council for the Arts has awarded more than $1.3 million in grants to recipients in 49 counties across the state.
The 177 grants will support both single arts events and ongoing arts education programs.
“The arts are at the heart of Georgia’s communities, and our vibrant arts organizations are enhancing downtowns, creating jobs and connecting people,” Pat Wilson, commissioner of the state Department of Economic Development, which oversees the arts council, said Monday.
“These grants will help strengthen communities across the state, encouraging tourism, business opportunity, and local pride. These awards also will provide educational opportunities for students, fostering creativity, critical thinking, and problem-solving skills that are essential for the future workforce in any industry.”
Grant recipients include the second annual Statesboro Festival of the Arts in Bulloch County, the creation of a mural in a prominent location along U.S. 1 in Jefferson County, an arts education afterschool program in Catoosa County, and a musical program at Woodland High School in Bartow County.
The arts council used peer-review panels to evaluate grant applications. Additional grants for fiscal 2026 will be awarded this fall.
The council is funded by the General Assembly and the National Endowment for the Arts.
