Georgia Power Pushes Back on Data Center Misinformation

Georgia Power addressed growing public concerns about data centers and electric rates during the Fayette Chamber of Commerce’s recent Economic Development Summit, pushing back on what company leaders called widespread misinformation about energy shortages and rising costs.

Jeff Butterworth, Georgia Power’s area manager for Fayette, Coweta, and Spalding counties, said data centers have dominated headlines statewide, often accompanied by claims that they will strain the electric grid or drive up residential rates.

“It is hard to pick up a newspaper or turn on the news these days and not hear or see headlines about data centers,” Butterworth said. “The thing seems to be that these data centers are going to cause power shortages and increase customer rates.”

Butterworth acknowledged that in some parts of the country, those concerns may be valid.

“Nationally, that is part of the story,” he said. “There are places around the country where that is something that you may even really worry about.”

But he said Georgia operates under a different regulatory structure.

“The thing you need to know is that is not in Georgia,” Butterworth said. He credited the Georgia General Assembly and the Georgia Public Service Commission (PSC) with ensuring what he described as “constructive energy policy and regulation that protects customers, encourages growth and strengthens our energy infrastructure.”

Who pays for large users?

A central concern raised by residents in recent months is whether large energy users — particularly data centers — could shift costs onto residential customers.

Butterworth said Georgia’s regulatory framework requires those large customers to shoulder the full cost of service.

“Large energy users, like data centers — and we have large manufacturing and all kinds of things all over the state — those customers must pay all the cost that they bring to the electric system,” he said. “They pay more so that everybody else pays less.”

According to Butterworth, those agreements include long-term contracts, minimum monthly billing requirements even if electricity is not used, significant termination payments if a company leaves early, and financial collateral requirements.

“They are on the hook for long-term contracts, minimal bills, even if they never use a single kilowatt hour,” he said.

He said those provisions are designed to protect other customers from financial risk tied to major industrial projects.

Rate freeze through 2028

Butterworth also addressed concerns about rate increases, stating that Georgia Power has agreed to freeze its base rates for three years.

“Last year, we worked with the Public Service Commission to take two actions that will help all customers,” he said. “First, we agreed to freeze our base rates for three years. That’s through the year 2028.”

“So when you hear their rates are going to go up — our rates are going to go up — that is actually factually false for Georgia Power customers through 2028,” Butterworth said.

The rate freeze means base rates will not increase during that period, though they are not scheduled to decrease as part of the freeze itself.

Separately, Butterworth said the company agreed to a longer-term plan projected to save the typical residential customer at least $102 per year during the three years following 2028.

In addition, he said Georgia Power plans to file two items with the Public Service Commission this month related to fuel costs and hurricane recovery.

“Those two things collectively — together — they will actually end up being a net lower rate for our customers, starting in June,” Butterworth said.

Any change tied to those filings would be subject to PSC review and approval.

Energy supply and reliability

Beyond pricing, Butterworth said Georgia Power is expanding generation capacity to meet growing demand.

“From a supply perspective and reliability, we include power adding nearly 10,000 megawatts of new energy,” he said.

He framed the company’s role as both supporting economic development and protecting residential customers.

“For almost a century, Georgia Power has helped the state grow and prosper by locating new businesses to the state,” Butterworth said. “Georgia’s future is bright, and certainly Fayette County is no exception.”

As debate over data centers continues across metro Atlanta, Butterworth urged residents to separate national headlines from Georgia-specific policy.

“So when you hear about fears of rising power costs due to data centers, reliability concerns due to data centers, please remember that is not Georgia,” he said. “At Georgia Power, we are here for Georgia. We’re here for you.”The summit featured presentations from multiple municipalities and business leaders discussing economic growth across Fayette County, which The Citizen will be running each week for the next several weeks. Last week Fayetteville was covered.