by Dave Williams | May 28, 2025 | Capitol Beat News Service
ATLANTA – An Augusta woman has pleaded guilty to running a “ghost” tax preparation business out of her home.
Kim Brown, 40, faces up to three years in prison on each of two counts of aiding and assisting in the preparation and filing of false tax returns, a period of supervised release after serving her sentence, and monetary penalties.
According to a plea agreement entered Tuesday in U.S. District Court for the Southern District of Georgia, Brown failed to comply with IRS requirements by failing to identify herself as a paid preparer on the tax returns she filed on behalf of her clients.
She also fabricated income to qualify her clients for tax credits, claimed fake deductions to boost the size of the refund, and charged clients a fee based on a percentage of the refund.
In all, Brown prepared 22 false tax returns that cost the U.S. Treasury Department $541,912 in false refunds.
The case was investigated by the IRS’ Criminal Investigation Division and prosecuted by Assistant U.S. Attorney George J.C. Jacobs III.
by Dave Williams | May 27, 2025 | Capitol Beat News Service
ATLANTA – Georgia Power has overestimated how much additional electrical generating capacity it will need to meet the demands of data centers, representatives of the state Public Service Commission’s Public Interest Advocacy (PIA) Staff testified Tuesday.
But those witnesses also supported the Atlanta-based utility’s plan to continue operating two of the company’s coal-burning power plants at Plant Bowen near Cartersville and Plant Scherer near Macon as well as upgrading existing natural gas units.
Tuesday’s testimony came as the commission opened a second round of hearings on Georgia Power’s 2025 Integrated Resource Plan (IRP) outlining the mix of energy resources the utility plans to rely on for power generation in the coming years.
The rapid growth of both data centers and cryptocurrency mining operations across Georgia is spurring expectations of a huge increase in demand for electricity. In its 2025 IRP, Georgia Power is forecasting a need for 13,140 megawatts of additional peak generating capacity, mostly from “large-load” customers including data centers.
A megawatt is enough electricity to power about 750 homes.
But the utility hasn’t produced adequate evidence to support such a massive increase, Rob Trokey, director of the PSC’s Electric Unit, testified.
“The company has not provided empirical evidence suggesting that data centers or cryptocurrency customers are likely to materialize at a higher rate than other industrial customers,” he said.
“If the commission approves Georgia Power’s current load forecast … that would lead to over-procurement, potentially including the risk of keeping coal longer,” added Isabella Ariza, a lawyer representing the Sierra Club and the Southern Alliance for Clean Energy.
The PIA Staff is recommending that the commission reduce Georgia Power’s load forecast by 2,000 megawatts.
But Brandon Marzo, a lawyer representing Georgia Power, said the staff’s analysis did not take into account three data center projects that have broken ground in Georgia that will add 3,721 megawatts of generating capacity.
“All of these data centers are in development,” he said. “Staff is proposing to make a 2,000-megawatt adjustment to the forecast, which could have a horrific impact if wrong.”
“They have made an investment,” Commissioner Tricia Pridemore added. “They have secured the capital. Why is it that the opinion of the staff is they’re not going to materialize?”
Trokey responded that the staff does believe substantial growth in demand by data centers will occur in Georgia. But he said the staff isn’t forecasting that demand will increase as much as Georgia Power is predicting.
“We’ve seen some data centers pull back in certain regions,” he said.
While the PIA staff’s recommendation to reduce Georgia Power’s load forecast is supported by consumer watchdogs and environmental advocates, staff witnesses backed up the utility’s plan to continue using fossil fuels to generate power.
“This option would allow the company to continue operating an existing resource and maintain fuel diversity as well,” said Anthony Sandonato, an independent contractor retained by the staff.
Jennifer Whitfield, a lawyer representing Georgia Interfaith Power & Light and the Southface Institute, suggested Georgia Power could save customers billions of dollars by retiring the two coal plants.
Energy lawyer Bobby Baker argued the utility doesn’t need to nearly double its current generating capacity over just the next eight years, calling it a “historic” expense that wouldn’t benefit Georgians.
“Why not put (data centers) in Virginia or Texas?” he asked. “They don’t bring anything to Georgia. They serve international customers.”
But David Hayet, a member of the PIA staff, said the huge increase in capacity Georgia Power is seeking would be offset in part when some of the company’s power-generating assets are taken offline.
“There are going to be retirements,” he said. “There are also going to be transactions that are going away, thousands of megawatts.”
The hearings will continue on Wednesday and possibly extend into Thursday. The PSC is scheduled to vote on the Georgia Power IRP on July 15.
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.
