Marc Hyden, Senior Director of State Government Affairs at the R Street Institute, testified before the Georgia Senate Regulated Industries Committee on January 27, 2026, in support of Senate Bill 34. The bill would prevent costs incurred by electric utilities for providing services to commercial data centers from being included in rates charged to other customers.
Hyden explained that while Georgia has seen significant investment in data centers—boosting business and the state economy—the increased energy demand from these facilities could lead to higher electricity costs for residential customers. He noted that Georgia operates as an electric monopoly state where consumers have no choice over their provider and must accept approved prices.
“Since 2023, the average Georgia Power residential [customer] is paying $43 more per month following a series of [increases] to base electric rates, to recover excess fuel expenses, and complete two of the newest nuclear power generators at Plant Vogtle,” reports the Georgia Recorder. Put simply, electric providers can charge whatever they want—so long as the Public Service Commission approves the prices—and customers are forced to pay it or go without electricity.
Hyden argued that SB 34 addresses this issue by ensuring data centers bear the full cost of their electricity usage rather than passing those expenses onto other ratepayers. “This measure simply states that data centers must pay for the costs incurred to serve them, and that those costs cannot be passed onto a pool of captive ratepayers like you and me. This is a small tweak that ensures that the cost of electricity is more fairly distributed based on use,” Hyden said.
He added: “I understand why data centers are the target. Some of them require a massive amount of electricity equivalent to the needs of a small city, but this should apply to all industries—data centers or otherwise. They should all pay for the resources they use and not pass them onto captive ratepayers who have nothing to do with their energy consumption.”
Hyden suggested an alternative approach would be allowing large new customers to choose competitive suppliers directly so that incumbent utilities like Georgia Power would not need to plan new generation solely for these users.
“In the end, SB 34 is a step in the right direction, and I encourage the committee to support the measure,” Hyden concluded.
