Northwest Georgia State Senator Chuck Hufstetler, a Republican, is raising alarms about a major Georgia Power “stipulation” that the Georgia Public Service Commission (PSC) plans to vote on December 19—just days before two newly elected Democratic commissioners take office on January 1.

The agreement, negotiated between Georgia Power and PSC staff, would green-light a massive $16 billion expansion plan that includes new natural gas plants, battery storage, transmission upgrades, and other infrastructure aimed largely at serving the explosive growth of energy-hungry data centers. The plan would add thousands of megawatts of new capacity over the next several years, one of the largest utility build-outs in the country.

Georgia Power and PSC staff say the deal would use extra revenue from large data-center customers to push typical residential bills about $8.50 a month lower than they otherwise would be once the new projects are built—though bills would still rise from today’s levels. Hufstetler argues that kind of language is misleading: if a bill goes up by $50 instead of $58.50, he says, that is not a true rate decrease for Georgia families.

He says the December 19 vote would effectively put customers on the hook for $16 billion in new construction, instead of shareholders bearing the risk if costs rise or demand doesn’t fully materialize. Hufstetler points to Georgia Power’s history of major cost overruns and warns that final costs could end up two to three times higher than currently projected.

The senator also criticizes the profit structure Georgia Power operates under, noting that the utility earns roughly 12% profit on capital construction. Under the current “cost-plus” rules, he says, “the more they spend, the more profit they make,” creating an incentive to build “big, expensive stuff” such as new gas turbines rather than seek cheaper, more efficient solutions.

Hufstetler notes that Georgia Power sold fewer kilowatt-hours in 2023 than in 2011, largely because energy efficiency has reduced usage per customer. Given that trend, he argues, residential and small-business customers should not be paying for a huge wave of new capacity being driven in large part by data-center growth.

He is especially critical of the timing. Voters recently defeated two incumbent commissioners, and two Democrats are slated to be sworn in on January 1. Despite that, the current five-member commission—including the outgoing incumbents—is moving ahead with the December 19 vote. Critics, including Hufstetler, describe this as a “lame-duck” move that should be delayed until the new commissioners are seated.

The senator also highlights his own Senate Bill 34, which would require large data centers to pay all of their infrastructure costs instead of shifting those costs onto other ratepayers. He notes that Georgia Power has publicly stated that data centers will cover their own costs and argues that, if that is true, the company and the PSC should support his legislation.

Hufstetler warns that Georgia already has some of the highest average electric bills in the country, while Southern Company—Georgia Power’s parent company—continues to post strong profits. He calls the stipulation a “smoke and mirrors proposal” and predicts it “will not age well,” adding that anyone who votes for it should be prepared to answer to voters in the next election.

The PSC’s final decision on the Georgia Power stipulation and build-out plan is scheduled for December 19 in Atlanta.