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Utility Company in Legal Dispute Over Excess Energy Production

Utility Company in Legal Dispute Over Excess Energy Production

Environmental and religious organizations are suing Georgia regulators after they approved an energy expansion plan by a utility company.

On March 25, the Southern Environmental Law Center (SELC) and other activist groups filed a petition in Fulton Superior Court. They are challenging Georgia Power’s proposal to acquire or construct 28 energy production resources. The lawsuit claims that the Georgia Professional Standards Commission (PSC) overstepped its authority by permitting a “monopoly utility” to undertake “unnecessary and uneconomic investments” that would be funded by customers who have no alternatives, as stated in the filed documents.

The SELC is a nonprofit legal organization that has received substantial funding, including over $50 million from billionaire Fred Stanbeck, known for donating to various environmental initiatives, as well as causes related to abortion and population control. Additionally, SELC has obtained more than $175.4 million from the Foundation for the Carolinas, where Stanbeck holds considerable accounts.

In the lawsuit, the SELC is representing the Sierra Club, the Georgia Interfaith Power & Light, Park Avenue Church, the Unitarian Universalist Church of Savannah, the Southern Alliance for Clean Energy, and Adrian Webber, a leader with the Sierra Club in Georgia.

Georgia Interfaith Power & Light (GIPL) is described on their website as an organization focused on empowering faith communities to implement climate solutions and advocate for issues related to climate change, environmental justice, and community resilience.

Park Avenue Church identifies itself as an “abolitionist church” with a mission to resist militarism and policing within a patriarchal and white supremacist structure, while also aiming to create new systems in collaboration with the Spirit of God.

The PSC granted Georgia Power certification for 9,617 megawatts, raising the company’s total capacity to 32,117 megawatts. This substantial energy acquisition was made in response to potential demand from companies looking to establish data centers in Georgia, according to the petition.

The SELC contends that the PSC exceeded its legal authority by approving 757 megawatts more than the necessary capacity, which is estimated to be around 31,360 megawatts. To put that into perspective, 757 megawatts could power more than 150,000 homes.

The petition alleges that Georgia Power misrepresented the costs associated with this certification, implying they would be charged to current customers rather than new ones, and raising concerns about other projects contributing to increasing demand. They also pointed out that Georgia Power had incurred costs related to a proposed $100 million methane gas-fired power plant before receiving the certification.

Further, the SELC claims that Georgia Power listed several of these resources as not subject to competitive bidding, which the PSC did not appropriately assess in terms of whether Georgia Power could buy the resources bypassing the bid process.

Adrien Webber, a plaintiff, expressed concerns regarding the Commission’s approval, stating that it would only worsen pollution and increase costs for Georgians evident on their energy bills. “We’re frustrated with a Public Service Commission that bends the rules to accommodate Georgia Power, disregarding the impact on our air, water, and monthly bills,” Webber said.

Georgia Power, a subsidiary of the Southern Company, received a noteworthy $26.5 billion loan from the U.S. Department of Energy in February to enhance electrical grids in Georgia and Alabama.

In broader terms, energy companies have been entangled in lawsuits regarding their adverse impact on climate. For instance, the Maryland Supreme Court recently dismissed lawsuits against 26 fossil fuel companies from Baltimore, Annapolis, and Anne Arundel County, which alleged violations of state law due to harmful fossil fuel emissions.

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