Mayors and city leaders came together in a spirit of fellowship at the recent 2025 Mayors Summit to discuss common issues impacting their communities. MEAG Power’s President and CEO Jim Fuller, as well as the senior executive team, provided several important updates during the main conference session.

Data Centers

Data centers continue to be a hot topic, given the potential benefits they bring from generating significant tax and energy sales revenue with relatively minimal impact to schools and traffic. However, serving these loads also comes with risk.

Jim Fuller noted that MEAG Power is working carefully to structure a process that will ensure Participants receive the full benefits of the load growth while minimizing the risks of serving large data centers, which include lower than anticipated loads and early termination of service. He offered a couple of quotes that capture the need to proceed with caution:

“There is a significant risk of Southeast utilities overbuilding power plants and pipelines in response to projected data center energy demand. This risk is exacerbated by the uncertainty over whether data center demand will materialize at the levels forecasted.” Institute for Energy Economics and Financial Analysis

“The devil is in the details—and there are a lot of details that, if mishandled, could lead to higher residential electric rates that effectively subsidize the largest and richest companies in the world and their customers.” Brookings Institution report: “Boom or Bust: How to Protect Rate Payers from the AI Bubble”

Transmission

Like many utilities across the U.S., MEAG Power plans to increase investments in transmission infrastructure over the next several years. This is partly due to the need to replace aging equipment and partly due to better managing the increase in power demand. (See the aging infrastructure article in this edition of Current.)

In addition to wholly owned MEAG Power assets, we have shared ownership in the Integrated Transmission System (ITS), a 17,800-mile network that flows power across 90% of the state. ITS engineers expect new load growth to exceed 9,000 MW in future years, requiring 2000+ miles of new, rebuilt and upgraded transmission to be constructed in Georgia in the next decade.

New Generation

The Pineview solar project is on track to come online in 2026. The engineering is complete and the solar facility and substation construction is nearing completion, with initial synchronization and test energy scheduled to occur in December.

Also, MEAG Power completed the acquisition of its wholly owned 40-acre site at Plant Wansley on which one or two new generation assets can be built. Site work is underway including clearing and leveling, gas pipeline development and evaluation of joint facilities to be used in conjunction with Georgia Power activities.

Based on our commitment to complete a new Integrated Resource Plan (IRP) every three years, MEAG Power will begin a new IRP process in early 2026. This will involve quantifying future resource needs and optimal supply-side resources, as well as an action plan to implement next steps.

Production Tax Credits

The Inflation Reduction Act of 2022 created the 45U nuclear power production credit, which applies to our generation at Plant Hatch 1 & 2 and Plant Vogtle 1 & 2. The credit is available between 2024 and 2032.

Principal Funding Gap

Our Power Purchase Agreements with JEA and PowerSouth require the offtakers to pay the principal on the debt service during the first 20 years of energy production at Vogtle 3 & 4, which was slated to begin in 2016. MEAG Power will take over the principal payments in 2036.

However, Vogtle Unit 3 didn’t begin operations until 2023, which pushes back MEAG Power’s receipt of the nuclear production to 2043. As such, MEAG Power will be responsible for seven years of principal payments before the Participants in Project J & P begin to receive the output of the units. The good news is that we expect to cover a majority of this gap with 45J advanced nuclear production tax credits and margins from sales to JEA and PowerSouth, plus investment earnings.

Leadership & Adversity

Malcolm Mitchell – former Georgia Bulldog, Super Bowl champion, and author – gave an inspiring talk on overcoming adversity and the importance of providing positive leadership to younger generations. His nonprofit organization, Share the Magic Foundation, encourages children to read and has distributed books to more than 350,000 kids in Georgia and beyond. If you are interested in having Malcolm come to your community, please reach out to your regional manager.

LPPC Conversation

Tom Falcone, President of the Large Public Power Council (LPPC), sat down with Paul Warfel of MEAG Power for a conversation on top issues facing public power utilities. Georgia isn’t alone in trying to manage an influx of data centers, as other municipal systems across the U.S. are grappling with how to meet the projected rise in energy demand.

On Politics

Brian Robinson provided an update on the most recent elections in Georgia, including the Public Service Commission seats, as well as his thoughts on next year’s elections and the upcoming state legislative session. Affordability is a key topic that will drive the next election cycle.

MEAG Power participated recently in GridEx VIII, the largest grid security exercise in North America, hosted by NERC’​s Electricity Information Sharing and Analysis Center (E-ISAC).

The goal of the biennial exercise is to engage teams from across disciplines in coordinating an effective response to extraordinary incidents that threaten the reliable operation of the grid. This year’s exercise provided several real-world cyber and physical threat scenarios designed to stress-test crisis response and recovery plans.

MEAG Power conducted a tabletop exercise, which provided the space for teams from bulk power, operations, transmission, information security and external affairs to discuss best practices for how to respond to specific incidents. The teams strategized and coordinated responses to various fictional “injects” – specific, detailed cyber and physical security events occurring across the state and MEAG Power grid assets.

MEAG Power will apply the lessons from the tabletop to improve processes and reliability of our system. NERC and the E-ISAC will apply the overall outcomes and lessons learned from GridEx exercises across the country to help improve the security of the North American grid. Reports detailing lessons learned from previous exercises are available under the “GridEx Public Reports” section on NERC’s website.​

For more info on GridEx, see this video.

Did you know that more than a quarter of the U.S. grid infrastructure is at least fifty years old, with the average age of large power transformers used in electrical substations being more than 40 years, beyond its life expectancy?

According to the American Society of Civil Engineers (ASCE), 70% of power transformers are 25 years or older, 60% of circuit breakers are 30 years or older, and 70% of transmission lines are 25 years or older.

After its founding, MEAG Power purchased 875 miles of transmission lines and 63 substations in 1977, adding another 165 miles of transmission lines and 11 substations two years later. Many of these transmission assets are still in use today.

Modernizing the electric grid is a pressing priority for the U.S. energy industry. Some of the risks from outdated equipment include:

• Greater vulnerability to outages, especially in times of severe weather events.
• Rising costs for maintenance and emergency repairs.
• Decreasing efficiency and higher energy loss.

Every four years, ASCE issues a report card for America’s infrastructure. Its 2025 report gives energy a D+, partly due to challenges of modernizing an aging grid at a time when demand for power is increasing rapidly and new generation projects are taking longer to complete.

The good news is that the ASCE gave Georgia’s energy system a B. It’s report on Georgia states, “Georgia has invested billions in energy grid upgrades and accelerated its transition away from coal-fired power plants to nuclear, natural gas, and solar energy sources. With more people and businesses moving to Georgia and increased energy needs as more companies build new data centers in the state, a reliable and robust energy grid is vital for Georgia’s economic future.”

At MEAG Power, we’ve been taking meaningful steps to replace aging equipment. Here’s a rundown of some of our recent transmission upgrade projects:

• Lawrenceville #3 Substation – the bank “C” transformer, which was originally installed in the late 1980s/early 1990s is being upgraded to a 25 MVA unit with a 25kV lowside. We’ve already replaced the existing 115/12kV with a new 115/25kV bank and converted the feeders to 25kV. In addition, we’re upgrading Lawrenceville #1 to provide 25kV service to a new hospital and adding a new 115/25kV, 25MVA bank with a 25kV feeder.
• Tifton–Offerman 230 kV Line Rebuild – this is a replacement of a line that was built in 1962, including existing shield wire and 162 tubular steel structures determined to be end-of-life. We’re currently working on the first of three sections of line, from Douglas to Offerman which runs 46.8 miles.
• Aultman Road–Bonaire Line – replacement of a 4.9 mile line built in 1956 that is in danger of thermal overload in a section based on loading, growth and contingencies.
• Monroe #5 Substation – we’re building a new 230/12kV delivery point to provide additional capacity due to the load growth in the area and to provide operational flexibility for the city’s distribution operations. We expect this substation to be energized in June 2026.
• Fortson Substation – we’re 50% complete in a modernization project that is projected to be completed in early 2027.
• Washington #3 / Ray Place Road – were rebuilding a 115kV line, which is expected to be completed in December 2026.

At its recent Customer Connections Conference, the APPA presented an Award of Excellence to MEAG Power for our book commemorating the completion of Plant Vogtle Units 3 & 4. The book was nominated in the Print & Digital category of APPA’s Excellence in Public Power Communications Awards.

MEAG Power created the book as an expression of our appreciation for the tireless efforts of all those involved in Vogtle Units 3 & 4. It covers the time between the initial discussions in 2005 on whether to participate in the project to the COD of Unit 4 in 2024. Through pictures and quotes the book illustrates the efforts to overcome the many challenges to making the project a reality.

Plant Vogtle Units 3 and 4 represent a historic achievement for Georgia and the U.S., and a major step forward for the nuclear industry. The project brought 500 MW of clean, baseload electricity to MEAG Power’s portfolio — enough to support thousands of households and businesses for 60-80 years. The impact of this achievement will only grow as the years pass. We thank everyone who helped bring Units 3 & 4 to life.

This year’s annual meeting once again provided Participants with an opportunity to learn valuable insights as well as connect with peers from across the state. The conference had a few extra flourishes, as MEAG Power celebrated its 50th anniversary.

Jim Fuller, MEAG Power President and CEO, kicked off the General Session by taking a historical look at the last 50 years of operations, as well as a view to the future. Among other data points, he noted that future financing levels are predicted to be relatively minimal compared to the last 15 years, while projected revenues are predicted to grow considerably through 2035.

He gave an update on the Pineview solar project, commenting that all solar panels have been delivered to the site and testing is expected to commence in the fourth quarter of 2025. The facility is expected to go into commercial operation in 2026.

Also, in celebration of the 50^th anniversary, he held a conversation with several founding members of MEAG, thanks to the help of AI. The technology enabled photos of these executives to speak, sharing their perspective on the founding of the organization, using quotes from past company publications. You can see an example here of Frank Olson, former MEAG Power Board member and CEO, speaking about the reasons why MEAG was created.

Scott Corwin, President and CEO of the American Public Power Association (APPA), gave a timely look at current issues in public power. The APPA, which is celebrating its 85^th anniversary this year, is focusing its 2025 advocacy on affordability and reliability. This includes reliable power supply, grid security, tax exempt financing and infrastructure, elective payment tax credits, and permitting reform. Additionally, he shared that the APPA is offering a guide to utility operational excellence, which can be found at www.PublicPower.org/OperationalExcellence.

Next, Peter Kelly-Detwiler, a noted energy expert, gave an informative look at data center trends and what developers are looking for when they approach municipalities with offers to build new sites. The availability of reliable, high-quality energy is top of mind with data center owners, as is a short time to market in the race to serve growing AI demands.

Dana Peterson, the Chief Economist from the Conference Board, gave her perspective on where the economy is headed. Her main takeaways were that the U.S. economy entered 2025 on strong footing and the underlying economy remains robust. Uncertainty, geopolitics, and domestic policies are generating volatility, with slower economic activity expected in the second half of 2025, but a recession remains unlikely and growth should pick back up in 2026.

Concurrent sessions at the annual meeting included an update on legislative activities in Washington, D.C. from Rob Talley, President of Talley & Associates, who advocate on behalf of MEAG Power and the Participants. His group is focused on budget reconciliation implementation, permitting reform, budget sequestration, and regulatory policy actions in 2025.

Kevin Stengel, Senior Originator at ACES, MEAG Power’s energy trading partner, led a session on renewable energy credits. These credits are a certificate that allows the owner to claim renewable energy attributes from a renewable energy source. He gave a broad overview of the tax credits, as well as a specific view of using these credits for the Pineview solar project.

The third concurrent session offered best practices for utility management, led by ECG’s Director of Analytical Services, Chau Nguyen. He focused on operations including generation, transmission and distribution planning, infrastructure, technology and staff planning, as well as rate design and other finance issues.

During the Annual Meeting, Participant voting delegates re-elected Larry Vickery, former General Manager (retired) of Calhoun Utilities, Patrick Bowie, City Manager of LaGrange, and Eric Wilson, Mayor of Forsyth, to three-year terms on the MEAG Power Board.

At the Tuesday evening event, Mr. Fuller and MEAG Power senior management awarded President’s Awards to Tina Atchison, Manager of Power Supply Planning, Sean Buckingham, Land Services Manager, and Kurt Smithberger, Principal Accountant. This award recognizes MEAG Power employees for exceptional service and dedication to MEAG Power and the Participant communities.

 

 

One of the ways MEAG Power supports Participants is through advocacy on energy-related issues that could potentially affect the cost or reliability of wholesale power. MEAG Power partners with industry and trade associations to monitor legislation and meet with state and federal government legislators, committees and/or agencies, providing a unified voice for Participants’ interests.

It was in that spirit that members of the MEAG Power staff, Board and Government Affairs Committee made their annual advocacy trip to Washington, D.C., at the end of April. The timing of the trip and the focus of the Committee’s messaging was tailored to the federal budget legislation that was being developed.

At the time, Congress was working on a tax reform bill through the budget reconciliation process that had several aspects of interest to MEAG Power and the Participants:

• Preservation of tax-exempt financing
• Support for elective pay and certain (nuclear) energy tax provisions
• Preservation of federal Build America Bond support payments

During the trip, the Committee members met with Senator Jon Ossoff, Representatives Rick Allen, Buddy Carter, Andrew Clyde, Mike Collins, Barry Loudermilk, Lucy McBath, Rich McCormick and Austin Scott, as well as staff members of several other offices. The Congressmembers learned firsthand about the vital interests of the Participant communities that could be impacted by the budget legislation.

Following to the visit, Congress continued to work on the legislation, which it eventually passed. On July 4, H.R. 1, commonly known as the One Big Beautiful Bill Act bill, was signed into law. In the end, public power fared relatively well given the possible outcomes of the bill negotiations

Key aspects of the law include:

• Tax-exempt financing was kept intact.
• Elective pay authority also was not changed.
• Clean energy tax credits are maintained for nuclear (existing and future), hydropower and geothermal facilities, though they are subject to a phaseout schedule that begins in 2033.
• Investment Tax Credits and Production Tax Credits for wind and solar projects were significantly diminished.
  • Projects that begin construction within 12 months can get 100% credit with no “Placed in Service” deadline, though a subsequent Executive Order directs the Treasury Department to significantly narrow the definition of “begin construction” to limit the availability of tax credits.
  • Projects beginning after 12 months must be placed in service by December 31, 2027.

Other energy-related outcomes from the final budget include:

• Tax credits for the purchase of new and used EVs are terminated, as are residential clean energy credits after 2025 and energy efficient home improvement credits.
• “Prohibited foreign entities” are prevented from benefiting from a range of energy tax credits, including those for clean electricity and advanced manufacturing.

Rob Talley, President of Talley & Associates, who advocates on behalf of MEAG Power and the Participants, spoke about the bill and its aftermath in a concurrent session at the recent MEAG Power Annual Meeting. He noted that passage of H.R. 1 marks the end of one process and the start of another – regulatory implementation and any necessary corrections that need to be made to the law.

Also, as relates to PAYGO budget sequestration, spending related to H.R. 1 could trigger additional discretionary spending cuts, requiring more legislative action before the end of the year to keep intact the Build America Bond support payments. So, while the efforts of the MEAG Power Government Affairs staff and Board Government Affairs Committee produced many positive outcomes in the passed legislation, their important work continues.

It’s that time of year again when the dog days of summer offer little respite from the heat, yet we’ve also entered into the hurricane season. Both extreme temperature and storm-related weather events can trigger energy emergency alerts (EEAs), which occur when a region’s power grid nears a shortage of electricity.

These alerts are categorized by severity (e.g., CSO Watch or Warning, EEA-1, EEA-2, EEA-3), and can result in a range of actions needed from power suppliers, including local utilities – everything from voluntary conservation requests to mandatory load shedding. You can read more about the different levels here.

In 2023, we had three Conservative System Operations (CSO) watches and four warnings due to high temperatures and storms. That number grew to three watches and eight warnings in 2024, including two cold temperature events and hurricanes Debby, Francine and Helene. Helene was the most destructive storm to hit MEAG Power’s territories in its history, with sustained winds of 140 mph and heavy rainfall causing power outages, broken transmission poles, trees hanging on transmission wires and significant debris.

The National Oceanic and Atmospheric Administration (NOAA) predicts a 50% chance of an above-normal hurricane season in 2025, with 13 to 18 named storms. This includes 2-5 major hurricanes (category 3, 4 or 5, with winds of 111 mph or higher).

Add in the rise in demand for 24/7 electricity from economic growth, data centers and electrification, and it is imperative that public power utilities stay up to date in their emergency and manual load shed preparedness.

That’s why MEAG Power offers both summer and winter energy emergency alert drills – to help Participants stay prepared for potential emergencies. The most recent training in May included exercises that involved simulations of a CSO Warning, EEA-2, EEA-3 and two manual load sheds, where Participants practiced what to do in each scenario.

The next scheduled training is December 3, 2025.

To learn more about the MEAG Power emergency training, reach out to your regional manager.

Lights, camera, action! Several current and former Board members and mayors pitched in to help us create a video to celebrate our 50th anniversary. It’s not just about the past, however. The mission and work of MEAG Power continues on as we endeavor to serve our Participants for the next 50 years.

Click here to watch the video.