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Senate committee hears wide testimony on bill to codify PSC protections for very large electricity customers (100 MW+)
Summary
Senators heard hours of testimony on a substitute bill that would codify protections for large electricity customers (defined as 100 megawatts or greater), including data centers; PSC staff described tariffs that require minimum bills, long contracts and collateral, while data‑center and Georgia Power witnesses urged careful, end‑use‑neutral drafting to avoid unintended consequences.
Senators in the Regulated Industries and Utilities Committee spent the second half of the meeting on a substitute (LC560546S) offered by Senator Hufstedler to address how very large electricity customers — commonly data centers — should pay for incremental generation and transmission costs.
The substitute shifts the bill’s focus from naming "data centers" to treating "large load customers" (those of roughly 100 megawatts or more) under an end‑use neutral standard. The sponsor said the goal is to prevent homeowners and small businesses from absorbing capital costs tied to new generation built primarily to serve mega‑customers.
Why it matters: Georgia has seen rapid growth in large data centers and other high‑load facilities. The Public Service Commission has already adopted a tariff for customers of 100 MW or more that requires minimum bills, longer contract terms and performance security; the legislation would codify statutory protections, but several witnesses warned that locking detailed rate‑making in law could reduce regulatory flexibility.
What witnesses said
Tom Bond, speaking for PSC Chairman Jason Shaw, told the committee that the commission has defined "large load" as 100 megawatts and adopted tariff and rule changes requiring minimum bills, long contracts and collateral; those filings and draft contracts are reviewed by PSC staff and can be rejected if they do not protect existing customers. Bond cautioned that legislation that prescribes rate‑making methodology risks hamstringing the PSC as the industry evolves.
Kara Bender, director of state policy for the Data Center Coalition, supported the bill’s intent but urged an end‑use neutral approach and precise drafting so that only costs "solely attributable" to large loads are shifted to those customers. Bender said data center members (including major operators) support paying the full cost of service and noted Georgia Power and the PSC have already taken steps to allocate costs appropriately.
Aaron Mitchell, senior vice president for strategic growth at Georgia Power, described the company’s contract and security practices for mega‑customers: longer contract terms (minimums of 15 years, sometimes 20+), customer‑specific minimum bills designed to cover incremental generation and transmission costs, letters of credit or other collateral and large termination/early‑exit penalties. Mitchell told senators those customers have paid and will pay substantial upfront and ongoing contributions and that, under December PSC actions and agreements, the company is able to freeze base rates through Dec. 31, 2028 and provide modeled customer benefits (he cited a figure of roughly $102 per residential customer per year over a specified multi‑year period).
Key questions and concerns
Committee members asked whether these rules would apply beyond Georgia Power, how enforcement and security (letters of credit, parent guarantees) operate in bankruptcy, what counts as costs "solely attributable" to a large load, and whether codifying granular rate provisions could deter manufacturers or other industries if the statute reduces the PSC’s contracting flexibility. Witnesses responded that the PSC’s tariff process includes review of draft contracts, that collateral and termination provisions are designed to protect other customers, and that the commission’s rules currently aim to prevent cost shifting.
What’s next: Senator Hufstedler said she expects to return with refinements and invited stakeholders to submit technical language. The committee did not take a final vote; members asked PSC staff and company officials for additional details and indicated further committee work before a reported recommendation.
Representative quotes
"This is designed to prevent the cost to serve these data centers from shifting to existing customers," Tom Bond said of the PSC tariff. Aaron Mitchell told senators: "These customers are paying all costs that we incur to serve them." Kara Bender urged an "end use neutral" framing so Georgia remains competitive for major employers.
The committee recessed after hearing testimony and committed to additional meetings and language work before taking formal action.
