Senate · Introduced · 2025-2026 Regular Session

SB34: SB34 Public Service Commission; costs incurred by an electric utility as a result of providing electric services to commercial data centers from being included in any rates; prohibit

Last action February 25, 2026 · Senate Committee Favorably Reported By Substitute

A Senate substitute bill would require electric utilities in Georgia to include specific consumer protection terms in contracts with very large power customers, like data centers, that use 100 megawatts or more.

In plain language

Data centers and other very large electricity users can strain the power grid and potentially raise costs for everyday customers if a utility has to build new infrastructure to serve them. This substitute version of SB 34 does not ban those costs from being passed on entirely, despite the bill's original title. Instead, it adds a new Code section to Georgia law (O.C.G.A. Chapter 2 of Title 46) requiring that any contract signed on or after the bill becomes law between an electric utility and a 'large load customer' include protective terms. A large load customer is defined as one expecting 100 megawatts or more of peak demand at one site or connected sites. Contracts with such customers must include minimum billing requirements, allow contract terms longer than standard tariffs, include performance and credit safeguards, and address what happens if the contract ends early. The law would take effect as soon as the Governor signs it or it becomes law without his signature.

What the bill does

Adds a new Code section (O.C.G.A. § 46-2-25.4) defining a 'large load customer' as one with expected peak demand of 100 megawatts or more at one site or connected tracts of land.
Requires new contracts between electric utilities and large load customers to include minimum billing terms that recover the utility's added costs of serving that customer.
Allows utility contracts with large load customers to run longer than the standard service tariff period.
Requires contracts to include performance and credit provisions meant to protect other retail customers if the large customer defaults.
Requires contracts to include termination provisions meant to protect retail customers if the contract ends early.
Applies only to contracts signed on or after the bill's effective date, and repeals any conflicting Georgia laws.

Who it affects

Electric utilities regulated by the Georgia Public Service Commission, very large electricity users such as data centers and industrial facilities expecting 100 megawatts or more of demand, and residential and retail electricity customers whose rates could otherwise absorb costs from serving those large users.

Why it matters

If a utility signs up a massive new customer like a data center, building the capacity to serve it can be expensive. This bill aims to make sure those costs are addressed through contract terms rather than falling on everyday residential and retail customers' electric bills.

Key provisions

Section 1 adds Code section 46-2-25.4, defining 'large load customer' as one with 100 megawatts or greater peak demand at one or more premises on the same or contiguous land.
Section 1(b) requires qualifying contracts entered on or after the effective date to include terms protecting residential and retail customers from costs of serving large load customers.
Section 1(b)(1) requires minimum billing requirements to recover incremental costs of serving or preparing to serve the large customer.
Section 1(b)(2) permits contract terms that exceed the length of the utility's standard service tariff.
Section 1(b)(3) requires performance and credit provisions to protect retail customers if the large customer defaults on the contract.
Section 1(b)(4) requires termination provisions to protect retail customers if the contract for electric service ends.
Section 2 sets the effective date as the date the Governor signs the bill or it otherwise becomes law without his signature.
Section 3 repeals any conflicting Georgia laws.

Status timeline

2026-02-25Senate Committee Favorably Reported By Substitute (Senate)
2026-01-12Senate Recommitted (Senate)
2025-02-27Senate Read Second Time (Senate)
2025-02-26Senate Committee Favorably Reported By Substitute (Senate)
2025-01-28Senate Read and Referred (Senate)
2025-01-27Senate Hopper (Senate)

Topics

electric utility rates
data centers
Public Service Commission
energy policy
consumer protection