Georgia Power and the staff of the Georgia Public Service Commission (GPSC) have reached a contentious deal on the utility’s long-term energy strategy, known as the Integrated Resource Plan (IRP), sparking immediate backlash from consumer and environmental advocates who claim it violates a previous agreement. The proposed settlement, slated for a GPSC vote on Tuesday, July 15, 2025, would permit coal-fired power plants to operate longer than anticipated, include investments in grid modernization, and launch a new pilot program for rooftop solar with battery storage. This development carries significant market implications for Georgia’s energy transition and customer costs.

At the heart of the dispute is the deal’s proposed reduction in demand-side management (DSM) targets. Advocates, including the Southern Environmental Law Center and Georgia Watch, argue this directly contravenes a 2023 agreement linked to the cost recovery for the Plant Vogtle nuclear reactors. That prior settlement, which saw consumer groups forgo challenges to Georgia Power’s $10.2 billion share of Vogtle’s capital costs, included a commitment to pursue an ambitious 0.75% annual energy savings target through DSM programs. The new stipulated agreement, however, lowers this target to 0.5%, prompting Jennifer Whitfield, an attorney with the Southern Environmental Law Center, to express shock that Georgia Power had “chosen to violate an order of this commission.” Georgia Power and commission staff contend they have adhered to the letter of the prior agreement, with utility lawyer Steve Hewitson dismissing the violation claims as “silly and frivolous.”

Beyond the DSM controversy, the IRP addresses Georgia’s rapidly escalating energy demand, driven largely by new data centers. While the commission staff previously criticized Georgia Power’s demand forecast as overblown, the new agreement deems it an “adequate method of forecasting” based on “substantially accurate data.” It mandates quarterly reports on large new customers and an updated forecast in October before the utility seeks bids for thousands of megawatts of new power generation. Analysts anticipate a significant portion of this new capacity will come from natural gas, a fossil fuel opposed by environmental groups due to its greenhouse gas emissions.

The proposed IRP outlines a substantial expansion of generation capacity, including an all-source bidding process for 6,000 to 8,500 megawatts (MW) and a separate bidding process for up to 4,000 MW of utility-scale renewable energy. Additionally, the deal introduces a program allowing companies to add large-scale renewable projects to the grid independently, a long-sought initiative by corporate clean energy buyers. Katie Southworth of the Clean Energy Buyers Association noted that customers are “ready to bring shovel-ready projects.” Conversely, the agreement’s provision for extending the operational lives of coal plants underscores a continued reliance on fossil fuels, a point of contention for clean energy proponents. The GPSC’s decision on this complex agreement will shape Georgia’s energy landscape for the foreseeable future, balancing economic development, environmental concerns, and customer affordability.