Georgia Senate fails to advance data center energy cost bill

The Georgia Senate failed to vote on a bill aimed at protecting consumers against the costs of energy infrastructure improvements for data centers. The failure happened just two days after a Senate committee watered down the initial protections of Senate Bill 34.

The Senate Regulated Industries Committee voted 9-3 to pass legislation that would require electric utilities to write contracts with new data centers to protect other customers from related costs, but the bill lacks specific language to prohibit electric companies from passing on costs of expanding capacity to customers, according to The Capitol Beat.

“The data center boom created this historic demand for new electric generation, and they should pay for it,” said Bobby Baker, a consumer advocate. “Current ratepayers should not be underwriting this $34 billion investment that could undermine the reliability and affordability of Georgia’s electric system.”

State Sen. Chuck Hufstetler, R-Rome, sponsored the bill and attempted to pass an amendment Thursday that would revert the bill back to its original form.

“Eighty percent of the people in Georgia want this. They want this protection. We need to provide it for them,” Hufstetler told The Georgia Recorder after adjournment.

Public Service Commission Chair Jason Shaw advocated against stricter legislation in the committee hearing saying that the PSC needs flexibility to set electricity rates. The PSC has raised rates six times since 2023.

“We can all argue all day about what it’s going to take to keep the lights on,” Shaw said. “It’s still a national problem. But I feel like we are in the right spot with being able to stabilize these rates, because Lord knows, everybody’s tired of increases.”

Shaw said the commission has protected consumers by passing an agreement last year to freeze Georgia Power’s electricity rates for the next three years.