The Georgia Public Service Commission (PSC) has granted regulatory approval for Georgia Power’s agreement to supply electricity to OpenAI’s forthcoming project in Effingham County, Georgia, US.
The regulatory decision marks the latest development in Georgia Power’s broader strategy to handle rising energy demand from large-scale operations while aiming to deliver savings to its residential customers.
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The contract, initially filed with the PSC in July, involves OpenAI committing to a 3.2GW capacity allocation for its new facility.
Under the terms of the contract, OpenAI will pay the full costs required for new infrastructure to serve its facility and has agreed to provide up to 1GW of flexible demand response.
This arrangement permits Georgia Power to reduce energy supply to the OpenAI facility at peak times. The utility suggested this could lower the need for new generation resources and benefit customers through increased savings.
Georgia Power estimates that new agreements with large-load customers, including the OpenAI contract, could yield approximately $950m in annual savings for customers, beginning in 2029.
Over the period from 2029 to 2031, the company projects customer benefits will amount to $2.85bn.
For a typical residential customer using 1,000kW-hours per month, average monthly savings are forecast to rise to $15 from 2029, an increase from the company’s previously stated target of $102 per year to $180 per year.
The announcement follows the PSC’s earlier decision to freeze base rates in July 2025 and a plan approved in May 2026 to lower overall rates.
Georgia Power indicated that these efforts have been designed to ensure that the anticipated growth in energy usage from major customers translates into cost benefits and reliability improvements for all customers.
Georgia Power chairman, president and CEO Kim Greene said: “In December, we committed to $102 a year in savings for the typical family, beginning in 2029. Today, that number is expected to be $180.
“We appreciate the continued diligence of the Commission and its staff in helping us deliver these savings for customers, and ensuring the right protections are in place for the millions of Georgians we are privileged to serve.”
OpenAI’s new project is expected to require substantial electricity, with the company agreeing to long-term energy contracts and providing financial assurances intended to protect against any cost impact for other customers.
According to Georgia Power, requests to manage load flexibility with OpenAI represent one of the largest single-facility demand response agreements in the US.
Georgia Power serves 2.8 million customers in the state, with rates averaging 15% lower than the national average since 1990.
Earlier this month, Georgia Power began construction of two combined-cycle natural gas units at Plant Bowen in Bartow County.
