Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 1027: Local government; authorize certain long-term contracts for sale of electric power
Last action March 31, 2026 · Senate Tabled
A Senate substitute to HB 1027 would let Georgia counties, cities, and the Municipal Electric Authority of Georgia sign longer contracts, up to 20 years, for electric power sold to very large industrial customers, with rules meant to keep those costs off regular ratepayers.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Current Georgia law generally caps county and municipal utility contracts at 10 years, with a 20 year exception only for solar and wind power deals. This bill adds a new 20 year exception for contracts to sell electric power to a single large customer, but only if a Fulton County Superior Court validates the contract as reasonable and enforceable, and only if the contract makes that customer pay the cost of any new power plant built to serve it during its first purchase agreement. If a new plant's output is shared with other governments, those governments cannot be charged more than their share of the plant's output. The bill also broadens the county provision (O.C.G.A. § 36-1-26) and rewrites the municipal provision (O.C.G.A. § 36-30-3) to apply to any 'political subdivision,' not just municipal corporations, and removes language that had limited emergency relief from contract obligations to situations of impossibility or substantial financial burden. Separately, it adds a new section to the law governing the Municipal Electric Authority of Georgia (O.C.G.A. § 46-3-126) defining a 'large load customer' as one needing 100 megawatts or more of power, and requiring contracts with such customers to include billing, term, credit, and termination protections for residential and retail customers, plus authority for the customer to pay for new generating capacity built to serve it.
What the bill does
- Adds a new 20 year contract exception for electric power sales validated by Fulton County Superior Court as reasonable and enforceable, on top of the existing solar and wind exceptions.
- Requires that in these validated long-term power contracts, the large customer pays for any new power plant built to serve it during the contract's initial term.
- Caps how much cost governments sharing a new power plant's output with a large customer can be charged, limiting them to their pro rata share of the plant's output.
- Expands the municipal utility contract law from applying only to 'municipal corporations' to applying to any 'political subdivision.'
- Removes language that had limited a government's excuse from contract obligations during emergencies to cases of impossibility or substantial financial burden.
- Defines 'large load customer' (100 megawatts or more of peak demand) in the Municipal Electric Authority of Georgia's powers law and requires new contracts with such customers to include ratepayer protections.
Who it affects
Georgia counties, municipalities, and other political subdivisions that buy or sell electric power; the Municipal Electric Authority of Georgia and the political subdivisions that contract with it; very large industrial or data center customers needing 100 megawatts or more of power; and residential and retail electricity customers whose rates the bill's protections are meant to shield.
Why it matters
As large industrial and data center customers seek massive amounts of power, this bill lets Georgia governments and MEAG lock in longer power deals and shift the cost of building new power plants onto those big customers rather than everyday ratepayers, subject to court review and specific contract protections.
Key provisions
- Section 1 amends O.C.G.A. § 36-1-26 to add a third 20 year contract exception (beyond solar and wind) for electric power sales validated by Fulton County Superior Court, with the large customer bearing new plant costs during its initial contract term.
- Section 1 also caps political subdivisions' share of new power plant construction costs at their pro rata share of the plant's output when output is shared with a large customer.
- Section 2 makes the same 20 year exception and cost allocation rules apply under O.C.G.A. § 36-30-3, and replaces 'municipal corporation' with 'political subdivision' throughout that section.
- Sections 1 and 2 both drop prior language limiting emergency relief from contract duties to situations that made compliance impossible or created a substantial financial burden.
- Section 3 adds a new paragraph to O.C.G.A. § 46-3-126 defining 'large load customer' as a customer needing 100 megawatts or more of peak demand on one or connected tracts of land.
- Section 3 requires new contracts between the Municipal Electric Authority of Georgia (or its member political subdivisions) and large load customers to include minimum billing requirements, contract terms that can exceed the standard tariff, credit and performance protections, and termination protections for retail customers.
- Section 3 authorizes the authority and political subdivisions to make large load customers pay all costs of new generating capacity built to serve them during the contract's initial term.
- Section 4 repeals any conflicting laws.
From the bill
“The sale of electric power which is validated by the Fulton County Superior Court as to its reasonableness and enforceability, including specific contract terms requiring the costs of any new power generation plant required to service a specific customer to be paid by such customer during the term of the customer's initial power purchase agreement”
“'large load customer' means customers with an expected total peak demand of 100 megawatts or greater at one or more premises located on one tract or contiguous tracts of land”
“such large load customer agrees to pay, during the initial term of such contract, all costs associated with creating or establishing more electric generating capacity for such customer”
Discussed in meetings (14)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Governmental Affairs Committee, February 4, 2026
From 0:59:53 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1027 would allow cities and the county participating in MEAG to enter retail electricity contracts lasting up to 20 years, rather than 10, to protect existing customers from infrastructure costs associated with serving large new customers. The sponsor said the change concerned selling electricity, not purchasing it, and described superior court review of contracts for reasonableness and enforceability. Asked whether customers could be stuck with a rate as markets changed, the sponsor said the bill would not lock rates. The sponsor explained that longer commitments could help recover infrastructure investments and that a 20-year contract would remain enforceable if a customer left after 10 years. In response to another member, the sponsor confirmed that contracts could cover data centers or other customers requiring substantial infrastructure improvements. The committee approved the bill by voice vote, with no opposition voiced.
House Rules Committee, February 9, 2026
From 0:27:56 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1027 would allow cities and the one county participating in MEAG to enter electric-service contracts with end users for up to 20 years. No questions were asked, and the committee took no calendar action.
House Rules Committee, February 19, 2026
From 0:42:38 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The committee placed HB 1027 on Thursday’s floor calendar under modified structured rules after a motion and second. No opposition was voiced, and there was no substantive discussion.
House floor session, February 19, 2026 (legislative day 21)
From 1:39:19 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 727
Summary by Georgia Commons: The sponsor said HB 1027 would allow members of the Municipal Electric Authority of Georgia to enter retail electricity sales contracts lasting 20 years rather than the current 10 years, with validation by a superior court judge. The sponsor described the longer contracts as a way to protect electric ratepayers. No questions were asked. The House passed the bill 162-2.
Senate Regulated Industries and Utilities Committee, March 17, 2026
From 2:05:22 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair announced that the bill would be heard Thursday afternoon. The committee did not discuss its substance or take a vote.
Senate Regulated Industries and Utilities Committee, March 19, 2026
From 0:34:12 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1027 would let participating local governments enter retail electricity sales contracts lasting up to 20 years, rather than 10, to recover infrastructure costs and protect existing customers. The sponsor said contracts would require superior-court validation. Asked about customer size, the sponsor said the bill was not limited to large users. MEAG's general counsel said proposed additional language would cover customers requiring new generation, including in Crisp County, and require those customers to pay its full cost. MEAG witnesses said longer contracts would match financing needs and allow participating communities to share project costs and earnings. One witness described potential construction of up to 1,200 megawatts of gas-fired generation. Asked why customers would not build their own plants, counsel said MEAG could provide backup from its wider generating fleet. The chair questioned construction overruns, bankruptcy risks and whether residents would receive savings. Witnesses said they intended to assign construction, operating and fuel costs to new customers and structure debt so bondholders could not pursue MEAG or its cities if a customer defaulted. Counsel acknowledged that cities would not have to pass savings to residents. No amendment or vote occurred. The chair planned revised cost-protection language and another hearing Tuesday at 10:00.
Senate Regulated Industries and Utilities Committee, March 24, 2026
From 0:22:52 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1027 would extend allowable electric-power contracts for MEAG Power and participating local governments from 10 to 20 years to help them compete for long-term customers. The committee substitute added customer-paid generation costs and restrictions against charging large customers less than retail customers. For loads of at least 100 megawatts, the sponsor described minimum billing, credit, default and termination protections for other customers. The sponsor questioned the undefined retail-rate comparison and said different customer classes have different costs. One member supported the added protections; another warned that steady large loads can cost less to serve and that pricing restrictions could hinder competition. MEAG Power's chief executive said local retail rates vary, so the restrictions could exclude some communities from competitive bids. The executive estimated residential rates at 10 to 16 cents per kilowatt-hour and prospective data-center rates at 9 to 10.5 cents. The executive said longer contracts would help match borrowing obligations to customer payments without exposing communities to unpaid debt. Members explored removing pricing provisions or applying similar rules across utilities, but adopted no amendment. The chair held action for further review.
Senate Regulated Industries and Utilities Committee, March 27, 2026
From 0:37:37 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair said the bill would extend certain electric-power contracts from 10 to 20 years to accommodate large customers such as data centers. The sponsor said the substitute replaced retail-rate restrictions with requirements that large customers pay their share of new generating capacity during the initial contract, while municipal participants pay no more than their proportional share. MEAG Power’s general counsel said Fulton County Superior Court would review the contracts through its bond-validation process, which supports borrowing terms. A member asked why that court was specified; the witness cited MEAG’s governing law. The chair questioned whether removing rate restrictions could let data centers receive preferential prices and give MEAG an advantage over other utilities. Another member argued that equal-rate requirements could disadvantage MEAG because large, steady loads differ from residential use. The witness said MEAG would negotiate large-customer energy prices centrally, while ordinary municipal rates vary. The sponsor maintained that construction-cost requirements would protect other customers and provide comparable treatment to Georgia Power. Legislative counsel identified drafting errors and an unintended removal of existing utility-contract requirements; the sponsor said that removal was not intended. The committee approved the substitute 9 to 1, subject to editing, and sent it to Rules.
Senate Rules Committee, March 30, 2026
From 0:26:51 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1027 would allow Municipal Electric Authority of Georgia members to enter electricity sales contracts lasting up to 20 years. The sponsor described it as a ratepayer protection measure and said the Senate committee had strengthened those protections. A member selected it, and the committee unanimously approved the calendar containing it.
- Read aloud: House floor session, January 28, 2026 (legislative day 8), 0:30:45
- Read aloud: House floor session, January 29, 2026 (legislative day 9), 0:53:49
- Read aloud: House floor session, February 5, 2026 (legislative day 13), 0:49:23
- Read aloud: Senate floor session, February 20, 2026 (legislative day 22), 0:39:03
- Read aloud: Senate floor session, March 27, 2026 (legislative day 38), 0:28:25
Status timeline
- Senate Tabled (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
Show full history (10 actions)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Victor Anderson (R, HD-10)
- Bill Yearta (R, HD-152)
- Bruce Williamson (R, HD-112)
- Noel Williams, Jr. (R, HD-148)
- Matthew Gambill (R, HD-15)
- Matt Barton (R, HD-5)
- Frank Ginn (R, SD-47)
Votes
- House voteFebruary 19, 2026
162 yea, 2 nay (7 not voting, 6 excused)
- Senate voteMarch 31, 2026
39 yea, 10 nay (2 not voting, 3 excused)
Topics
- electric utilities
- local government contracts
- data centers and power demand
- Municipal Electric Authority of Georgia
- ratepayer protection