HB1027: HB1027 Local government; authorize certain long-term contracts for sale of electric power

Under current Georgia law, local governments generally cannot sign utility contracts (for electric, natural gas, or water service) longer than ten years. This bill changes that limit for certain electricity deals. Counties and municipalities could sign contracts of up to 20 years for solar or wind power, and for electric power sales validated by the Fulton County Superior Court as reasonable and enforceable, including contracts requiring a large customer to pay the cost of any new power plant built to serve it. The bill also adds new rules for the Municipal Electric Authority of Georgia (O.C.G.A. Title 46) when it or member political subdivisions contract with 'large load customers,' defined as customers needing 100 megawatts or more of power. Those contracts must include protections for regular residential and retail customers, such as minimum billing requirements and default and termination provisions, and may require the large customer to cover the cost of new generating capacity built for it.

• Raises the maximum contract length from 10 to 20 years for county and municipal solar and wind utility contracts (O.C.G.A. 36-1-26 and 36-30-3).
• Allows counties and cities to sign up to 20-year electric power sale contracts if a court (Fulton County Superior Court) validates the contract as reasonable and enforceable.
• Lets those long-term power contracts require a large customer to pay the costs of any new power plant built to serve it during its initial contract term.
• Requires that when a new power plant's output is shared between a large customer and local governments, construction costs be split based on each party's share of the plant's output.
• Adds a new definition of 'large load customer' (100 megawatts or more of peak demand) to the law governing the Municipal Electric Authority of Georgia.
• Requires contracts between the Authority (or its member political subdivisions) and large load customers to include billing, credit, default, and termination protections for residential and retail customers.

County and municipal governments that buy or sell electric, gas, or water utility service; the Municipal Electric Authority of Georgia and its member cities and counties; large industrial electricity users needing 100 megawatts or more; and residential and retail electric customers whose rates could be affected by these large contracts.

As data centers and other very large power users seek electricity in Georgia, this bill lets local governments and the Municipal Electric Authority sign longer contracts to build and pay for the generation those customers need, while adding contract terms meant to keep ordinary residential customers from absorbing the cost if a large customer's deal falls through.

• Section 1 amends O.C.G.A. 36-1-26 so county utility contracts for solar, wind, or court-validated electric power sales can run up to 20 years instead of 10.
• Section 1 and 2 require that when a new power plant serves both a large customer and local governments, construction costs be allocated according to each party's pro rata share of the plant's output.
• Section 2 makes the same 20-year contract term change for municipal corporations under O.C.G.A. 36-30-3.
• Section 3 adds a new paragraph to O.C.G.A. 46-3-126 defining 'large load customer' as a customer with expected peak demand of 100 megawatts or more.
• Section 3 requires Municipal Electric Authority of Georgia contracts with large load customers to include minimum billing requirements, extended contract terms, default protections, and termination protections for retail customers.
• Section 3 authorizes the authority and its member political subdivisions to require a large load customer to pay all costs of new generating capacity built for it during the contract's initial term.
• Section 4 repeals any conflicting laws.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-27Senate Read Second Time (Senate)
3. 2026-03-27Senate Committee Favorably Reported By Substitute (Senate)
4. 2026-02-20Senate Read and Referred (Senate)
5. 2026-02-19House Passed/Adopted (House)
6. 2026-02-19House Third Readers (House)
7. 2026-02-05House Committee Favorably Reported (House)
8. 2026-01-29House Second Readers (House)

• Victor Anderson (R, HD-010)Primary sponsor
• Bill Yearta (R, HD-152)
• Bruce Williamson (R, HD-112)
• Noel Williams (R, HD-148)
• Matthew Gambill (R, HD-015)
• Matt Barton (R, HD-005)
• Frank Ginn (R, SD-047)

1. PassedHouse voteFebruary 19, 2026

   162 yea, 2 nay (7 not voting, 6 absent)

   Passage: House Vote #533

2. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• electric utility contracts
• local government power
• large data center power demand
• renewable energy contracts
• Municipal Electric Authority of Georgia