In 2022, energy demand skyrocketed for Georgia Power’s large project customers, like data centers, leaping 22 times its historical average.
This, plus additional load forecast modeling by Georgia Power, suggests the demand will continue to increase over the next four to five years. That drove the company to create an off-cycle resource plan that’s updated every three years. It’s also known as the Integrated Resource Plan, a long-term plan that Georgia Power must provide to the Public Service Commission.
In its 2023 Integrated Resource Plan Update, Georgia Power wrote,
“To put the magnitude of this growth in context, based on the economic data available during the 2022 IRP, the Company anticipated less than 400 (megawatts) of growth between the winter of 2023 winter of 2030. In contrast, because of the rapid pace of economic development since January 2022, the Company’s current projections reflect load growth of 6,600 MW through the winter of 2030, 17 times greater than previously estimated.”
Commissioner and chairman of the PSC, Jason Shaw, one of five who will approve or defer this stipulated 2023 Integrated Resource Plan, is in a period of final review, studying the stipulation. Shaw represents PSC District 1, which includes Muscogee County.
“The case was filed back in October based on the enormous changes to load forecasting that resulted mainly from unprecedented growth that the state saw in 2022,” Shaw said. “Eighty percent of this growth is attributed to artificial intelligence and data centers. These industries use an enormous amount of electricity and energy.”
The Atlantic Journal-Constitution found 18 data center campuses are in development or preparing for expansion in Georgia, mostly near Atlanta. Metro Atlanta is the number six market in the U.S. for data centers.
Shaw said the crux of his job is striking the balance between ensuring reliability on the system and protecting ratepayers from energy burdens.
Shaw, could not comment on how he would vote nor give more details because the PSC is in exparte until the April 16 vote.
“You can not put all your eggs in one basket, moving toward clean energy transition is very challenging with this unprecedented growth,” Shaw said.
Could a different approach work to meet demand?
Marilyn Brown, a professor of sustainable systems at Georgia Tech who held the role of Public Service Commissioner at the Tennessee Valley Authority for eight years, argued in the 2022 Integrated Resource Plan hearings that the modeling itself needs to be changed.
“While solar and battery backup is an excellent way to go, we need to have diversity,” Brown told the Ledger-Enquirer. “I suggest that the demand side management can be treated like a power plant.”
Brown said buildings are inefficient and there is an opportunity to have arrangements with customers to turn off a water heater, for example. With their own built-in battery for the hot water tank, the hot water tank will still work when there is a power outage.
“If Georgia Power creates arrangements with customers to turn their water heaters off they won’t know the difference,” she said. “Instead of turning on Yates you turn off the water heaters, it’s pollution-free, good for the customers, and they are paid to make their water heater available.”
Brown hopes the commissioners negotiate these stipulated terms and consider demand response as a competitive resource.