Subcommittee backs measure allowing longer contracts for MEAG participants

The State and Local Government Subcommittee voted to advance HB 1027, a bill designed to let Municipal Electric Authority of Georgia (MEAG) member cities enter retail electric service contracts with large‑load customers for longer terms — aligning retail contract lengths (up to 20 years) with bond terms, supporters said.

Chairman Anderson introduced the bill; Pete Dagnum, general counsel for MEAG Power, told the committee the change would allow cities to structure long‑term power sales contracts with large‑load customers, including data centers, and to validate those contracts in Georgia courts to ensure enforceability and reasonableness. Jim Thornton of the Georgia Municipal Association said extending terms to 20 years better aligns contract terms with bond financing and the association supports the bill.

Committee members asked whether the change would affect data centers and how the validation process would protect ratepayers; MEAG legal counsel said validation and judicial review would be part of the process to ensure enforceability. The subcommittee moved and seconded the bill and reported it out by voice vote; the chair recorded one opposed voice on the record. The sponsor and MEAG representatives said they would be available to answer follow‑up questions before full committee consideration.