Georgia Power has received regulatory approval for its contract to serve an OpenAI project in Effingham County, Georgia, with the Georgia Public Service Commission signing off on the agreement as part of a broader framework the utility has been building to turn extraordinary demand growth into lower costs for its 2.8 million customers.

The approval, announced on August 26, 2026, marks the latest milestone in Georgia Power's strategy to channel large-load industrial and technology customers into tangible financial benefits for residential ratepayers.

The company now projects that savings for the typical residential customer will reach at least USD 180 per year beginning in 2029, up from a commitment of USD 102 per year that Georgia Power made in December 2025.

The OpenAI Contract and What It Covers

Georgia Power filed the contract with the Georgia PSC in July 2026. Under the terms of the agreement, OpenAI's Effingham County project will represent 3,200 megawatts of new demand, making it one of the largest single customer commitments the utility has entered into.

OpenAI has agreed to pay the full cost of the infrastructure required to serve its facility, a condition that the company says is central to ensuring that existing customers bear none of the capital expense associated with connecting the project to the grid.

The contract also includes a flexible demand response commitment of up to 1,000 megawatts. That provision allows Georgia Power to reduce the amount of energy delivered to the OpenAI facility during periods of peak system demand, a mechanism the utility says will allow it to invest in fewer new generation resources to serve future growth across its service territory.

The Financial Picture for Customers

Georgia Power says the cumulative effect of the OpenAI contract, combined with other large-load contracts already in place and projected future growth in the state, is expected to produce approximately USD 950 million in annual savings for customers.

Over the three-year period from 2029 through 2031, the company projects total customer benefits of USD 2.847 billion.

For the typical residential customer using 1,000 kilowatt-hours per month, the projected savings translate to at least USD 15 per month beginning in 2029. Georgia Power described that figure as an increase from the $102 per year commitment made in December 2025, now rising to USD 180 per year.

Kim Greene, chairman, president, and CEO of Georgia Power, framed the development in terms of national trends in electricity pricing.

"We know every dollar counts, and we know that in many parts of the country, growth is pushing electric rates up. That is not happening in Georgia," Greene said in the announcement.

"In December, we committed to USD 102 a year in savings for the typical family beginning in 2029.

Today, that number is expected to be USD 180."

Greene credited the Georgia PSC and its staff for their role in structuring the framework under which the savings are being delivered, and added that the company's underlying commercial philosophy with large customers is straightforward.

"Data centers are paying more so families and small businesses can pay less, and our goal with every contract we sign under this framework is to deliver value for them," she said.

Regulatory Framework and Prior Actions

The approval of the OpenAI contract follows a series of regulatory steps that Georgia Power and the Georgia PSC have taken in response to what the company has characterized as the first signs of projected extraordinary growth in the state.

The Georgia PSC approved a freeze on Georgia Power's base rates in July 2025. In May 2026, the commission approved a plan to lower overall rates.

The PSC also introduced new rules and regulations specifically designed to protect customers as large-load growth accelerated.

Georgia Power separately published what it called a Customer Protection Pledge, a public commitment the company says reaffirms its obligations to serve the interests, communities, and priorities of its customer base as the growth environment changes.

The company has positioned these steps as part of a proactive approach developed collaboratively with the PSC to ensure that growth in data centers, manufacturing, and other large-load sectors translates into lower costs rather than higher ones for existing customers.

Georgia Power's Rate History and Market Position

Georgia Power noted in its announcement that since 1990, it has offered rates averaging approximately 15 percent below the national average.

The company offers flexible rate plans for both residential and business customers, along with programs designed to help customers manage energy usage and costs.

The state has seen significant inbound growth from new residents as well as from large industrial and technology customers choosing Georgia as a location for major facilities.

Georgia Power said its contract structure with those customers, including the requirement that large-load customers pay the full cost of infrastructure built to serve them, is central to its ability to deliver the projected savings to existing ratepayers.