Senate · Introduced · 2025-2026 Regular Session

SB 34: 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 for SB 34 would require electric utilities in Georgia to include specific consumer-protection terms in contracts with very large power customers, such as data centers, so their costs are not shifted onto residential customers.

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In plain language

Large industrial customers, including commercial data centers, can require enormous amounts of electricity, sometimes over 100 megawatts. Building the infrastructure to serve them can be costly, and if a large customer defaults or leaves, those costs could otherwise be spread across residential and other retail electric customers through rates. This bill amends Georgia's Public Service Commission law (O.C.G.A. Chapter 2 of Title 46) by adding a new Code section, 46-2-25.4. It defines a 'large load customer' as one with an expected peak electricity demand of 100 megawatts or more at one site or connected tracts of land. For contracts signed after the bill takes effect, electric utilities must include specific protective terms, such as minimum billing requirements, contract lengths that can exceed standard tariffs, credit and performance safeguards, and termination provisions, all meant to shield residential and retail customers from absorbing costs tied to serving these large customers. The law would take effect as soon as the Governor signs it.

What the bill does

Creates a new legal definition of 'large load customer' as one needing 100 megawatts or more of peak electricity demand at a single site or contiguous tracts.
Requires new contracts between electric utilities and large load customers to include terms protecting residential and retail customers from related costs.
Mandates minimum billing requirements in these contracts to recover costs incurred in serving or preparing to serve large load customers.
Allows contract terms with large load customers to run longer than the utility's standard service tariff.
Requires performance and credit provisions to protect retail customers if a large load customer defaults on its contract.
Requires termination provisions that protect retail customers if a large load customer's electric service contract ends.

Who it affects

Electric utilities operating in Georgia, large industrial and commercial electricity users such as data centers with very high power needs, and residential and other retail electric customers whose rates could otherwise be affected by the costs of serving those large users.

Why it matters

As data centers and other massive power users expand in Georgia, serving them can require costly grid upgrades. This bill aims to keep those costs tied to the large customer's contract rather than spread across everyday households' electric bills, changing how utilities must structure new large-load contracts.

Key provisions

Section 1 adds new Code section 46-2-25.4 to Georgia law, defining 'large load customer' as one with expected peak demand of 100 megawatts or greater at one or more premises on contiguous land.
Section 1 requires contracts with large load customers signed after the effective date to include minimum billing requirements tied to incremental service costs.
Section 1 allows contract terms to exceed the length of the utility's standard service tariff.
Section 1 requires performance and credit provisions to protect retail customers if a large load customer defaults on its contract.
Section 1 requires termination provisions protecting retail customers if the electric service contract ends.
Section 2 makes the Act effective immediately upon the Governor's signature or upon becoming law without signature.
Section 3 repeals any conflicting laws.

From the bill

“the term '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.”
This is the bill's definition of which large electricity users the new contract rules apply to.

“shall include terms and conditions designed to protect residential and retail electricity customers from costs associated with serving new large load customers”
This is the bill's core requirement that utility contracts shield ordinary customers from large-user costs.

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 regulation
data centers
Public Service Commission
electricity rates
utility contracts

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