Georgia Power faced a potential crisis as the demand for electricity in the state was projected to outpace production by 2025. To address this, the power company proposed various measures including purchasing power from other utilities, adding solar and battery storage, and building new natural gas turbines. However, experts raised concerns about the accuracy of the demand projections and criticized the reliance on gas-powered solutions instead of carbon-free alternatives.
One of Georgia Power’s controversial moves was entering into power purchase agreements with its affiliate companies in Mississippi and Florida. These deals bypassed the normal competitive bidding process and raised suspicions about self-dealing. Critics argued that the agreements allowed Georgia Power to offload the negative effects of coal power, such as pollution and coal ash disposal costs, onto Mississippi Power without proper consultation with the Mississippi Public Service Commission.
Furthermore, while federal regulations oversee affiliate transactions like these agreements, there have been concerns about the lack of transparency and potential for favoritism towards sister companies. Advocates have called for increased scrutiny from state regulatory bodies and the adoption of regional wholesale markets to ensure fair and transparent energy transactions.
The Southern Company, which controls Georgia Power and its affiliates, has defended the current model of electricity regulation in the Southeast, arguing that it provides affordable and reliable energy. However, critics contend that the lack of competition and transparency in the regulated monopoly system can lead to decisions that prioritize profits over public interest and hinder the transition to a cleaner energy future.
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