Georgia Power files plan to reliably, economically meet the energy needs of a growing Georgia

Rhea-AI Summary

Georgia Power has filed its 2025 Integrated Resource Plan (IRP) detailing strategies to meet growing energy demands in Georgia. The company projects approximately 8,200 megawatts (MW) of electrical load growth over the next six years, with a 2,200 MW increase by 2030 compared to 2023 projections.

Key proposals include: power uprates at Plants Hatch and Vogtle adding 112 MW of carbon-free energy; upgrades to Plant McIntosh adding 268 MW capacity; extended operation of coal and natural gas units through 2034; modernization of 9 hydroelectric plants; and procurement of 4,000 MW of renewable resources by 2035, expanding the renewable portfolio to approximately 11,000 MW.

The plan also includes transmission improvements across 1,000+ miles of lines and enhanced customer programs focusing on energy efficiency and income-qualified assistance.

Positive

• Projected 8,200 MW load growth over next six years indicates strong market demand
• Addition of 112 MW carbon-free energy through nuclear plant uprates
• 268 MW capacity increase at Plant McIntosh
• Expansion to 11,000 MW renewable portfolio by 2035
• Grid enhancement across 1,000+ miles of transmission lines

Negative

• Extended operation of coal units through 2034 may face environmental regulatory risks
• Significant capital expenditure required for plant upgrades and modernization
• Large infrastructure investments may impact future rate structures

Expansion of a diverse energy mix includes continued investment in Georgia Power's existing generation fleet; 
Enhancements to the power grid to increase reliability and resiliency; 
Customer-focused programs that include expanded renewable energy options and increased initiatives for income-qualified customers

ATLANTA, Jan. 31, 2025 /PRNewswire/ -- Georgia Power today filed its 2025 Integrated Resource Plan (IRP), which details the company's plan to meet the energy needs of customers and support the state's expected continued extraordinary growth. In the IRP, the company has proposed necessary investments in its generation fleet and transmission system to help ensure Georgia Power can continue to provide its customers with the reliability and resiliency they deserve and expect, as well as demand-side and customer programs.

Today's filing with the Georgia Public Service Commission (PSC) builds on the foundation of previous IRPs and the recent 2023 IRP Update, which was approved by the Georgia PSC in April 2024 (read more here). Georgia Power continues to see positive economic development trends, in the short and long term, with many of the businesses coming to the state bringing large electrical demands. Over the next six years, Georgia Power projects approximately 8,200 megawatts (MW) of electrical load growth – an increase of more than 2,200 MW by the end of 2030 when compared to projections in the 2023 IRP Update.

"At Georgia Power, our vision extends far beyond today — we plan for tomorrow, the next ten years and decades to come," said Kim Greene, chairman, president and CEO of Georgia Power. "As Georgia continues to grow, this state is well-positioned for the future thanks to proactive planning, policies, and processes like the Integrated Resource Plan. The 2025 IRP provides a comprehensive plan to support Georgia's continued economic growth and serve Georgians with clean, safe, reliable and affordable energy well into the future." 

Expansion of a Diverse Energy Mix
Throughout its more than 140-year history, Georgia Power has built, maintained and improved power plants across the state to reliably serve customers and a growing Georgia. The company's diverse generation mix has evolved to include cleaner and more efficient forms of energy generation as technology has advanced and, as part of the Southern Company system, Georgia Power continues to be an industry leader in the research and development of emerging energy technologies.

With the 2025 IRP, Georgia Power proposes continued investments in existing power plants already in operation today to serve the needs of a growing Georgia more economically and with increased efficiency.

Proposed economical extensions and enhancements to existing generating units include:

• Extended power uprates to reliable, emission-free units at Plants Hatch and Vogtle. With the completion of Units 3 & 4 at Plant Vogtle, Georgia is now home to the largest generator of clean energy in the U.S., and Georgia Power continues to recognize the importance of additional nuclear capacity for Georgia's energy future. In this IRP, the company has proposed additional investment in Hatch Units 1 & 2 and Vogtle Units 1 & 2 to enable those units to deliver an additional 112 MW of carbon-free energy to Georgia Power customers.
  
  
• Extensions and upgrades to existing power plants. The company's integration of cleaner natural gas – which has helped reduce overall carbon emissions by more than 60% since 2007 – into its fleet continues in the 2025 IRP, with additional upgrades planned for Plant McIntosh near Savannah that would add an additional 268 MW of capacity. The company has also proposed extended operation of certain coal and natural gas units through at least 2034, with additional upgrades and compliance activities planned at multiple facilities. This effort includes the continued operation of coal-fired units at Plants Bowen and Scherer, which have served Georgia Power customers reliably for decades with approximately 4,000 MW of electricity. The units are among the most advanced coal-fired units in the world and, over time, have added and now operate state-of-the-art technology to reduce the environmental footprint of those facilities, including scrubbers, selective catalytic reduction systems and baghouses. These advancements have resulted in reductions in main air emissions by more than 95% over the past few decades.
  
  
• Continued investment to modernize and operate Georgia's hydro fleet. Georgia Power's fleet of hydroelectric generating units is another source of emission-free energy, with some units serving the state of Georgia for more than 100 years. The 2025 IRP continues the company's efforts to modernize its hydro fleet with new projects for 9 existing hydro plants including critical replacements and refurbishments needed for turbines, generators and other equipment. These units have not been previously approved for modernization and these efforts are expected to allow them to operate for at least another 40 years while improving the efficiency and integrity of the hydro fleet and preserving valuable, dispatchable carbon-free resources for the long-term benefit of customers.  

Growing Renewable Energy
In its filing, Georgia Power also continues to demonstrate the importance of economical new energy procurements through competitive RFP processes, which help maintain flexibility amid changing market conditions and enable the company to continue to bring more renewable energy to customers. The company's long-term plan highlights the procurement of a total of 4,000 MW of renewable resources by 2035, with at least 1,100 MW of new renewable resources proposed in this IRP. These new resources would expand the company's renewable resource portfolio to approximately 11,000 MW by 2035. 

Procurement of energy from new battery energy storage (BESS) projects is also expected to be a part of all-source capacity RFPs, building on the company's current plans to add more than 1,500 MW of BESS in the coming years (read more).

Enhancing the Power Grid to Increase Reliability and Resiliency
Georgians continue to benefit from a more reliable and resilient power grid, thanks in large part to strategic investments Georgia Power has made over the last decade. In recent years, the company has provided exceptional reliability with fewer and shorter power interruptions (read more), and the state's growing "smart grid" is showing value for customers by reducing service impacts of severe weather from events like Hurricane Helene and Winter Storm Cora.

A large factor in maintaining reliable electric service every day, as well as during severe weather events, is Georgia Power's continued investment in the state's integrated transmission system. The transmission system moves high-voltage energy from generation plants to local distribution power lines to serve customers.

The 2025 IRP includes Georgia Power's 10-year transmission plan, which identifies the transmission improvements needed to maintain a strong and reliable transmission system to move energy from new and existing power plants to customers across the state. The company's 10-year plan proposes new transmission resources across more than 1,000 miles of transmission lines, improving the system's efficiency and resiliency, and providing the energy infrastructure needed for a growing state. Additionally, the company has proposed a variety of economic and innovative solutions, including new grid enhancing technologies to help meet increasing grid capacity needs and enable further reliable integration of the state's growing amount of solar generation and BESS.

Diverse, Customer-Focused Programs 
In addition to investments in its transmission and generation systems and assets, Georgia Power recognizes how important demand-side resources, such as energy efficiency programs and demand response programs, are to its resource mix and customers' overall experience. Georgia Power's portfolio of customer programs is continually evolving to offer innovative options that help customers meet their sustainability and resiliency goals, as well as enhance energy efficiency and provide customers with more control over their energy usage.

"The changing needs of our customers – and how they use energy every day in their homes and businesses – are at the center of every decision we make," added Greene. "We work with customers every day to help them find solutions that work for them, and we know that every kilowatt we can help them save matters. Through the IRP process, we not only consider how we make and move electricity, but also how to leverage the latest customer insights to develop programs that help our customers meet their unique needs and use energy more efficiently."

In the 2025 IRP, Georgia Power seeks to continue to advance and innovate its program designs, while maintaining focus on enhanced system reliability and affordability for all customers. Highlights include:

• Solutions to meet increasing customer demand for emission-free, sustainable, and resilient energy including a new solar plus storage program for residential and small commercial customers; a new distributed energy resource (DER)-enabled demand response program aimed at meeting the capacity and resiliency needs of large customers; and expanding existing customer subscription programs to facilitate the addition of more renewable resources available for customer subscriptions. 
  
  
• Increased initiatives for income-qualified customers. The 2025 IRP includes a focus on demand side management offerings specifically for income-qualified customers. The company proposes to continue and expand successful programs including Energy Assistance for Savings and Efficiency (EASE) and HopeWorks, among other adjustments to various customer programs.

To learn more about how Georgia Power is meeting the needs of customers through a diverse, balanced energy portfolio, and the IRP process, visit www.GeorgiaPower.com.

About Georgia Power
Georgia Power is the largest electric subsidiary of Southern Company (NYSE: SO), America's premier energy company. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company's promise to 2.8 million customers in all but four of Georgia's 159 counties. Committed to delivering clean, safe, reliable and affordable energy, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Georgia Power offers rates below the national average, focuses on delivering world-class service to its customers every day and is recognized by J.D. Power as an industry leader in customer satisfaction. For more information, visit www.GeorgiaPower.com and connect with the company on Facebook (Facebook.com/GeorgiaPower), X (X.com/GeorgiaPower) and Instagram (Instagram.com/ga_power).

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning projected economic growth and load growth, planned capacity additions, and expected timing for the Georgia PSC vote on the 2025 IRP. Georgia Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Georgia Power; accordingly, there can be no assurance that such suggested results will be realized.  The following factors, in addition to those discussed in Georgia Power's Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: variations in demand for electricity; available sources and costs of natural gas and other fuels and commodities; transmission constraints; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects due to challenges which include, but are not limited to, changes in labor costs, availability, and productivity, challenges with the management of contractors or vendors, subcontractor performance, adverse weather conditions, shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor, contractor or supplier delay, the impacts of inflation, delays due to judicial or regulatory action, nonperformance under construction, operating, or other agreements, operational readiness, including specialized operator training and required site safety programs, engineering or design problems or any remediation related thereto, design and other licensing-based compliance matters, challenges with start-up activities, including major equipment failure or system integration, and/or operational performance, challenges related to pandemic health events, continued public and policymaker support for projects, environmental and geological conditions, delays or increased costs to interconnect facilities to transmission grids, and increased financing costs as a result of changes in interest rates or as a result of project delays; legal proceedings and regulatory approvals and actions related to past, ongoing and proposed construction projects, including Public Service Commission approvals and Federal Energy Regulatory Commission and U.S. Nuclear Regulatory Commission actions; the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; advances in technology, including the pace and extent of development of low- to no-carbon energy and battery energy storage technologies and negative carbon concepts; the ability to successfully operate Georgia Power's generation, transmission, and distribution facilities, and the successful performance of necessary corporate functions; the inherent risks involved in generation, transmission and distribution of electricity, including accidents, explosions, fires, mechanical problems, discharges or releases of toxic or hazardous substances or gases and other environmental risks; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Georgia Power; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the direct or indirect effect on Georgia Power's business resulting from cyber intrusion or physical attack and the threat of cyber and physical attacks; global and U.S. economic conditions, including impacts from geopolitical conflicts, recession, inflation, tariffs, interest rate fluctuations and financial market conditions, and the results of financing efforts; access to capital markets and other financing sources; the ability of Georgia Power to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars or other similar occurrences; and the direct or indirect effects on Georgia Power's business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure, or operation of generating or storage resources. Georgia Power expressly disclaims any obligation to update any forward-looking information.

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SOURCE Georgia Power

FAQ

What is Georgia Power's projected energy demand growth by 2030?

Georgia Power projects approximately 8,200 MW of electrical load growth over the next six years, with a 2,200 MW increase by 2030 compared to 2023 IRP Update projections.

How much renewable energy capacity will Georgia Power (SO) add by 2035?

Georgia Power plans to procure 4,000 MW of renewable resources by 2035, with at least 1,100 MW proposed in the 2025 IRP, expanding their renewable portfolio to approximately 11,000 MW.

What upgrades are planned for Georgia Power's nuclear plants?

Georgia Power plans power uprates at Plants Hatch and Vogtle that will add 112 MW of carbon-free energy capacity.

How long will Georgia Power continue operating its coal plants?

Georgia Power has proposed extended operation of coal units at Plants Bowen and Scherer through at least 2034.

What transmission system improvements are included in Georgia Power's 2025 IRP?

The 10-year transmission plan includes improvements across more than 1,000 miles of transmission lines to enhance system efficiency and resiliency.