Environmental groups urge delay of GA Power gas turbine project

Atlanta

Georgia Power should delay construction of three new dual-fuel turbines at Yates Plant near Newnan to give it time to consider potentially cheaper alternatives, an independent energy consultant said Wednesday.

The Atlanta utility received bids late last week in an all-source procurement request for proposals (RFP) to expand its electricity generation capacity to meet Georgia’s rapidly growing need for power. By taking the time to evaluate those bids, Georgia Power could reduce its reliance on natural gas, Albert Lin testified at a hearing held by the state’s Public Service Commission (PSC).

“Georgia Power’s level of reliance on natural gas generation is higher than the national average,” Lin said. “Further increasing the company’s reliance on natural gas will only expose the system and its users to a greater incidence of price shocks. … It will be visible in customers’ bills.

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Georgia Power is seeking PSC certification to build the three turbines. The turbines will run primarily on natural gas, but can switch to ultra-low-sulfur diesel fuel when gas is not available, which is typically the case on cold winter mornings.

Opponents of the project are not only concerned about Georgia Power’s increasing reliance on carbon-emitting fossil fuels, they also argue that natural gas prices are highly volatile.

“Monthly price swings for natural gas are often more than 50 percent,” said Lin, who testified Wednesday on behalf of the Sierra Club and the Southern Alliance for Clean Energy. “Moreover, the volatility increases over time.”

But Preston Thomas, an attorney for the PSC’s Public Interest Advocacy Staff, said concerns about natural gas price volatility are overblown. The staff has recommended approving the project.

“There have been peaks, but there have also been sustained periods of low prices,” Thomas said.

Jeffrey Grubb, director of resource policy and planning for Georgia Power, testified that waiting until the company completes the full RFP process would delay plans to expand energy capacity, which is desperately needed to serve Georgia’s growing number of energy-hungry data centers.

“Delaying the certification process or decision is simply not an option,” Grubb said. “The RFP process is generally helpful, but it is time-consuming and does not provide the ability for the rapid deployment needed to meet the company’s short-term capacity needs.”

Grubb also pointed out that the first of the new turbines Georgia Power plans to build will come online in the winter of 2026/2027, while the RFP is aimed at the winter of 2029/2030 and beyond.

The PSC is expected to vote on the project on August 20.