Welcome to the 30th Annual MEAG Power Mayor’s Summit!

This is a unique forum that enables Mayors of Participant communities and other city leaders to meet and discuss shared issues and concerns. Each year, there are great insights that result from these discussions.

This year’s agenda includes a mix of guest speakers and political analysis, MEAG Power business and operations updates, and – most importantly – time for Participants to share learnings among one another. To that end, if you are unable to attend, please ensure that you designate a Board/Commission Chair or another person to represent your community.

We look forward to seeing you!

LOCATION:

Chateau Elan Winery & Resort

100 Rue Charlemagne Drive, Braselton, GA 30517

ATTIRE:

Meetings: Business Casual / Evening Activities: Dressy Casual

ON-SITE AMENITIES:

Chateau Elan provides these amenities as part of each room reservation:

• Resort pool access with poolside fire pit lounging
• Daily winery tour
• Recreational club access (tennis, basketball and volleyball courts)
• Driving range access (one complimentary range token; call Pro Shop for availability)
• Tennis court access (call Pro Shop to reserve court time)
• Resort bicycles (available 9:00am-5:00pm)
• Resort shuttle service to winery, spa and golf courses
• Fitness center access
• Wireless internet and unlimited local calls
• In-room coffee

Note: Self parking is complimentary. Valet parking is $40/per day.

In September 2023, the effects of an El Niño swept across the southern U.S., raising temperatures in a region already in the grips of a relentless heat wave. In Texas, high electricity demand and critically low reserve margins led to a level 2 Energy Emergency Alert (EEA). The available energy supply couldn’t meet the elevated demand, and additional resources were needed to support the grid.

Four months later, in January 2024, a winter storm in Texas sent temperatures plunging and energy demand skyrocketing to an all-time winter peak record. The state’s power generation and load started to become unbalanced, prompting local officials to ask citizens to conserve electricity use.

While conditions in Georgia didn’t get as severe, MEAG Power set an all-time peak each of the last two summers, and the Reliability Coordinator for the Southern Balancing Authority (that MEAG Power belongs to) issued an EEA level 1 in January when an arctic air mass blew through.

The growth of energy-intensive data facilities and launch of many economic development projects in Georgia are adding increasing, year-round demand on the electrical system. It’s important for Participants to know that strains on the power grid can occur in any season, and that potential impact from severe weather isn’t just a summer phenomenon anymore.

As such, spring and fall are good times to review plans for significant energy events. That includes a quick primer on EEAs, which are issued to prompt steps to maintain grid reliability when available supply and operating reserves are in danger of not meeting demand.

Conservative System Operation Advisories – Watches or Warnings, based on the severity of the conditions impacting the grid in question, usually precede the EEA alert levels.  They are an advanced warning that there are known conditions (i.e., storms, hurricanes, extreme temperature changes, potential generation deficiencies) that call for non-essential maintenance to be discontinued and for the system to be on heightened alert.

Think of an EEA level 1 alert as a thunderstorm watch, where conditions exist in which power demand could potentially exceed supply – all available generation resources are in use. EEA level 2 is a step up where emergency energy is needed and citizens may be asked to conserve electricity – load management procedures are in effect. The highest level, EEA 3, occurs when operating reserves go below the required minimums and Firm Load interruption is imminent or in progress. If the need for load shedding continues over a longer period of time, electric utilities may enter into rolling blackouts to share the outages across a number of their customers. While used as a last resort, these temporary, controlled interruptions of power supply help maintain grid integrity and prevent more severe or prolonged outages.

While Georgia hasn’t had to worry much about EEA events in the past, Participants should be aware of the increased risks. If an EEA is ever issued in Georgia, be prepared to communicate with local communities on how to reduce energy use, such as limiting use of EV chargers, washers and dryers, dishwashers, hair dryers, gaming desktops and other large appliances.

Helpful guides to communicating conservation tips to local communities in both summer and winter are available on the MEAG Power website. The APPA also has ready-made resources available to share on its Promoting Public Power webpage. Participants are also encouraged to keep track of up-to-date energy data via the Participant Pages including power loads, current and historical peaks, unit status and market pricing.

Rest assured, MEAG Power continuously plans for such risk scenarios. The most recent update to the Integrated Resource Plan (IRP) includes recommendations to keep Plant Scherer in the portfolio and add solar and battery to the mix, as these resources can supply much needed energy during extreme weather events and other high-demand situations. The IRP also evaluates backup resources for solar energy, such as adding battery storage, to ensure the reliability of the system.

The 2024 MEAG Power Annual Meeting once again brought together Participants and a cross-section of legislators, public power experts and business partners to share valuable insights and build relationships. The gathering came at a unique time as a rise in AI-driven data centers, new manufacturing facilities and the electrification of transportation are driving predictions of a surge in energy demand in Georgia and elsewhere.

MEAG Power President and CEO Jim Fuller kicked off the General Session noting that we’ve reached a tipping point where we soon need to make some critical decisions. The rise in large loads has providers around the country looking to add new capacity, including Georgia Power and Oglethorpe Power, which have announced plans for new generation.

Given current industry trends, we have two choices in front of us. Continue with the status quo, which would only require incremental investment but could see city utilities lose ground competitively to other providers. Or, join together to explore additional sources of energy that could help win more competitive loads, which in turn would reduce average cost, increase margin, spread risk and enhance affordability.

Lakin Garth of the Smart Electric Power Alliance (SEPA) gave some eye-opening insights into the potential growth of data centers. He noted that data centers were predicted to grow from 4% of total U.S. electricity consumption in 2023, to 9.1% by 2030.

As of July 2024, Georgia had 127 data center facilities across 47 providers that encompass 10.8 million square feet and use approximately 1,500 MW of power. That ranks Georgia 6^th in the U.S. in terms of data center load by state. And there are many more projects in the pipeline.

David Wasserman of the Cook Political Report gave an entertaining and informative perspective on the rapidly changing Presidential election. He also shared current polling in key House and Senate races, and how the potential outcomes could impact power sharing in Washington D.C.

Navigating the environment in Washington D.C. also was a topic of Susan Eisenhower’s speech. Recalling how her grandfather, former President Dwight Eisenhower, had organized and galvanized support around the country’s development of nuclear power, she said her visit to the MEAG Power conference had reenergized her outlook as she saw how Participants came together to bring the Plant Vogtle expansion to a successful conclusion.

Jason Shaw, Chairman of the Georgia Public Service Commission, provided his perspective regarding current and future energy needs in Georgia, and what the Commission is doing to ensure that consumers receive safe, reliable and reasonably priced electric services.

Mike Steffes, the CEO of ACES, MEAG Power’s new energy trading partner, gave an overview of his company. His colleagues, Andy Whitesitt and Alex Huff, also led a Concurrent Session on current power market trends, including an update on the natural gas, coal and renewables market, and what we can reasonably expect in the future given uncertain load forecasts.

Another Concurrent Session focused on financial trends in the public power sector with a panel discussion moderated by MEAG Power’s CFO, Reiko Kerr. Panelists included Mike Mace, Senior Director at PFM, and Dan Aschenbach, Principal Consulting Partner at AGVP Advisory. The third Concurrent Session featured an analysis of EV trends and rates led by ECG’s President and CEO, Walter West, and Chau Nguyen, Director of Analytical Services.

During the Annual Meeting, Participant voting delegates re-elected Bill Yearta, State Representative from Sylvester, Steve Tumlin, Mayor of Marietta, and Terrell Jacobs, GMA Municipal Operations Consultant to three-year terms on the MEAG Power Board.

The Annual Meeting closed with a nod to next year’s gathering, which will mark MEAG Power’s 5o^th anniversary as an organization. It promises to be a special occasion, so mark the dates: July 14-16, 2025.

MEAG Power President and CEO Jim Fuller set the context for discussions at the recent 2024 Annual Meeting by noting that market and regulatory trends are pushing us to a tipping point where, together, the Participants and staff need to make some critical decisions on future resource supplies.

We’re coming off the commercial operation of Vogtle Unit 4, completing the biggest endeavor MEAG Power has ever undertaken. Units 3 and 4 have added 500 MW of clean, reliable energy to the portfolio. Yet that may be just a drop in the bucket compared to the potential load increase being forecast in Georgia and elsewhere over the next few years.

As Lakin Garth of the Smart Electric Power Alliance (SEPA) noted in his presentation, data centers were estimated to account for 4% of total U.S. electricity consumption in 2023, and are expected to grow to a potential 9.1% by 2030. ACES, MEAG Power’s new energy trading partner, supported this forecast in its Concurrent Session by citing estimates that data center load is expected to double over next five years.

That’s on top of growth in manufacturing and the increasing electrification of transportation, which also will drive increased energy demand in our communities.

In response, many energy providers across the country are making plans for new power plant construction to boost supplies. Georgia Power received approval to build 1,400 MW of new generation based on its revised demand forecast, which increased 16-fold from just two years ago. Oglethorpe Power also announced plans recently to build new gas generation totaling 1,440 MW at a cost of $2.3 billion.

In addition to higher load growth, we could be facing the early retirement of Plant Scherer, depending on the fate of recent EPA rules on greenhouse gas emissions. That’s 490 MW that would need to be replaced at a time of increasing demand.

MEAG Power’s mandate as a public power joint action agency is to provide reliable, affordable power, and make available resources that will meet future demand of our Participant communities. That becomes increasingly difficult if demand grows and the supply of power diminishes.

That leaves two options. One, keep the status quo of supplying the communities’ inherent growth. That would require only incremental investment, but it also could reduce competitiveness as other energy providers become better positioned to take on large loads.

Two, we can join together to explore additional sources of energy that can serve these bigger loads. A new project would spread risk and enable Participants to win these projects, which in turn would dilute the fixed costs and reduce the kilowatt hour rate, increase margin and enhance affordability.

To be most effective there would need to be support from a broad base of Participants who come together and agree on a feasible project model. In fact, MEAG Power requires buy-in from at least five Participants to move forward with any new project. The more Participants that join, the more we can spread risk and new revenues. No single community could build purpose-fit generation at the same affordable, low-risk option as a larger group.

And the benefits potentially are significant. There is a surge of interest at the moment among data center developers, e-mobility companies and others looking for communities that have reliable, clean and affordable energy.

EdgeConneX, a global data center company, recently paid $318.5 million for a strip of land in Union County.  That’s about $5 million per acre. When hearing the price, many real estate professionals thought it was a clerical error.

EdgeConneX plans to build a $1.8 billion data center campus to serve Microsoft. The site will require the equivalent electricity to power a city of 700,000 people.

Investments like these don’t get made on a whim. The demand for power is certainly going to rise. It’s just a matter of by how much.

The loads are coming, and whether or not Participants can win their share depends on decisions this group will make over the coming months.

Attracting deals like EdgeConneX could provide substantial benefits for Participant communities. But it requires a commitment and investment now to secure enough power in the future.

New plants take time to build. At least four to five years for gas and solar construction, and more than 10 for nuclear. And that’s not counting design and development, regulatory approval, testing, and other requirements.

If we started today, we likely wouldn’t get the energy until 2029 or 2030 at the earliest.

That puts us on the clock to make some decisions.

When it comes to what type of new generation to build, MEAG Power is open to all sources. Our guiding principle is to maintain diversity and flexibility in our generation mix, so that we continually provide reliable, affordable power to your communities. To this end, we recently issued an RFP for a range of new generation sources to see what options are available and will support our needs.

As we move into the latter half of 2024, keep in mind that other providers are building generation and will be positioned to win more loads and drive down their costs. If we set up a new project in the right way, Participants could benefit from winning new loads large and small.

We look forward to having more conversations with you on these important issues.

Units 1-4 have the capacity to generate a total of more than 4,660 MW of electricity.  Specifically, Units 1 and 2 have a combined capacity of 2,430 MW, while Units 3 and 4 were designed with a combined capacity of 2,234 MW.

Together, Plant Vogtle is expected to produce more than 30 million MW hours annually. It also is estimated that the plant will avoid 10 million metric tons of carbon dioxide emissions yearly.

Top 5 Nuclear Power Plants in the U.S.

1. Plant Vogtle – 4.66 GW
2. Palo Verde Generating Station – 3.93GW
3. Browns Ferry Nuclear Plant – 3.4GW
4. Peach Bottom Atomic Power Station – 2.77GW
5. South Texas Project Electric Generating Station – 2.7GW

 Source: Power Technology

• 9,000 construction workers at its peak
• 25,000 tons of steel (enough to build 27,000+ cars)
• 700,000 cubic yards of concrete (enough to build a sidewalk from Miami to Seattle)
• 600,000 lbs. – the weight of each reactor vessel for Units 3 & 4 (more than the Statue of Liberty)
• 7 million linear feet of cable
• 100 miles of piping that carries water throughout Units 3 & 4
• 1.3 million linear feet of conduit and supports
• 500,000 linear feet of pipe
• 1,600 people who currently support operations for the Units 3 & 4

Unit 4 at Plant Vogtle entered commercial service on April 29, 2024, adding 250 MW of emissions-free generation capacity to its portfolio. Together with Vogtle Unit 3, which entered commercial service on July 31, 2023, MEAG Power has added 500 MW of emissions-free generation capacity to its portfolio, an equivalent amount to power an estimated 227,000 homes and businesses. Both units will provide reliable, clean, safe and affordable baseload power to our Participant communities for the next 60 to 80 years.

Unit 3 Update

After entering into commercial service on July 31, 2023, Plant Vogtle Unit 3 has operated near flawlessly. By the end of May 2024, it had produced approximately 7 million net MWh of generation, and the capacity factor as of April 2024 was 93.7%, including 5 planned days of maintenance outage.

Passive Safety Systems

Plant Vogtle Units 3 and 4 are designed with passive safety systems that utilize natural forces such as gravity, natural circulation and compressed gas – rather than electrical machinery (pumps, fans, diesels, chillers, etc.) – to keep the core and containment from overheating in the event of a design-basis accident, such as a main coolant-pipe break.  This significantly reduces dependency on machinery and need for AC/DC power.

These features provide:

• Water tanks inside and on top of the containment building provide enough water to keep the reactor in a safe condition – through gravity, natural circulation and evaporative cooling.
• Air cooling also is provided by a chimney effect with hot air flowing out of the top of the shield building.

Pressurized-Water Reactors

All of Plant Vogtle’s units are pressurized-water reactors (PWRs). Click here to see an overview of how they work.

In a nutshell, the fission in the nuclear reactor creates heat, which turns water into steam, which then turns turbines that produce energy.  The steam then goes through a condenser where it is cooled back into water and recirculated in the steam generator.

A note about cooling towers, the most iconic and visible structures in a nuclear plant: the clouds coming from the towers are clean water vapor.

Cool water flows through pipes that pass through the condensers, helping turn the steam back into liquid that is recirculated to the steam generator. After passing through the condenser, the now-heated water flows to the cooling towers where is is released as a spray. As the water falls, some of it evaporates and heats the surrounding air, which rises and turns into vapor as it exits the top of the tower.

Uranium Fuel

The Vogtle units utilize uranium pellets for fuel. Each pellet has as much energy as 149 gallons of oil or 1 ton of coal. A nuclear reactor can hold more than 13 million pellets!

Refueling the Core

Vogtle operators conduct refueling of the reactors every 18 months. They add new fuel and remove used fuel. Technicians also take advantage of the time to check, repair and replace systems as needed.

The spent fuel is stored in a holding pool before it eventually is transferred into dry cask storage units. These units are stored on site and ensure safe storage of the spent fuel for the life of the plant.

With the Vogtle expansion project complete, the co-owners, including MEAG Power, hosted a celebration to mark the historic achievement.

More than 500 people attended the main celebratory event at the plant Vogtle site, in the shadows of the cooling towers. Speakers included Gov. Brian Kemp, PSC Commissioners and Georgia Power CEO Kim Greene among others.

Gov. Kemp noted that “This is history being made right before our very eyes. Vogtle 3 and 4 doesn’t just represent an incredible economic asset for our state and a milestone for our entire country, they also stand as physical examples of something that I remind myself of every day: Tough times don’t last, tough people do.”