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Me - BSEET & BSEE: years of experience in petroleum oil and natural gas; pollution control systems, data centers, substations, and modeling for Energy Management Systems. Diagnostic troubleshooting and testing of plant HMI, Supervisory Control and Data Acquisition, distributed control system, Allen Bradley, Siemens, GE Fanuc, and Modicon PLCs,  protected relay devices, level switches, flow meters, pressure and temperature transmitters, pneumatics, hydraulics, continuous emission monitoring systems, and trained on regenerative thermal oxidizer combustion and combustion turbines.

It's not just Georgia. Why Georgia Power/Southern Company supports data centers, earning exponentially profits, big bonuses for EMS engineers for Data-Driven Scaling, and the company’s leadership. The public deserves a clear explanation of what is actually driving utility rates and why a disputed or allegedly unlawful rate increase was ultimately reversed temporarily in Georgia. One issue that warrants particular scrutiny is the relationship between Energy Management System (EMS) data, utility operations, tariff calculations, rate cases, customer billing, and data centers. Data-Driven Scaling.

Utility customers are generally told that their gas and electric bills are determined by, measured consumption, supply costs, taxes, approved tariffs, riders, and other authorized charges. What is less transparent is how operational data generated and managed by utility systems like the southern company, specifically Georgia Power’s EMS data that is used in forecasting demand, planning system operations, evaluating costs, and developing information presented in future rate proceedings where rates actuarially or statistically are projected to achieve targeted profit and earnings, and revenue requirements modeled to support a targeted level to increase utility earnings.

 

How Gas Billing Works

Step 1 – The Meter Measures Consumption

A natural-gas meter records the customer's usage, generally in cubic feet or CCF. Gas may also be expressed in therms, with approximately one therm equal to 100,000 BTUs.

Step 2 – The Utility Applies the Gas Heating Value

The energy content of natural gas can vary depending on its composition. Utilities use gas-quality measurements, including information obtained through gas chromatographs and related systems, to determine the applicable heating value.

The basic conversion is:

Measured gas volume × applicable BTU factor = billable therms

Step 3 – The Applicable Tariff Is Applied

The customer's bill may then include components such as:

• Customer or base service charges
• Distribution charges
• Per-therm charges
• Purchased Gas Adjustment (PGA) or Gas Cost Recovery (GCR) charges
• Taxes
• Regulatory riders and other authorized adjustments

The critical public-policy question is not simply whether these components exist. It is how the underlying operational, demand, cost, and forecasting information is generated, validated, incorporated into regulatory filings, and ultimately reflected in approved rates.

How EMS Data Can Influence Utility Operations and Rate Proceedings

An Energy Management System is designed to collect, process, monitor, and analyze information used to operate an electric power system. EMS engineers and system operators can configure system inputs, monitor system conditions, establish operational parameters, and use system outputs for forecasting, dispatch, reliability, planning, and other operational purposes.

EMS data can include information concerning:

• System demand and load
• Generation availability
• Transmission conditions
• System constraints
• Forecasted demand
• Operating conditions
• Power flows
• Historical system performance
• Other operational measurements and calculated values

A key issue for public oversight is whether, and to what extent, this operational information is subsequently incorporated into cost forecasts, demand forecasts, planning assumptions, regulatory filings, tariff proceedings, or other processes that can affect customer rates.

Daily System Demand and Future Rates

EMS systems can provide utilities with detailed information regarding daily system demand and system operating conditions. Those data can be important inputs into forecasting and planning.

The distinction that must be made clear to the public is this:

EMS data does not, by itself, establish a customer's tariff rate. Rates are generally established through regulatory processes and approved tariffs. However, operational data can potentially influence the forecasts, cost assumptions, planning analyses, and other evidence used in those proceedings.

Therefore, if a utility uses EMS-generated information in developing information submitted in a rate case, the public should be able to determine:

1. What EMS data was used;
2. Who configured, validated, or approved the relevant inputs;
3. What calculations or models were performed;
4. How the resulting information was incorporated into cost or demand forecasts;
5. Whether the methodology changed during the relevant rate period;
6. Whether the information was disclosed to regulators;
7. Whether the resulting rate was authorized under the applicable tariff and regulatory requirements.

The Central Transparency Issue

The concern is not that utilities use sophisticated engineering systems. EMS technology is an essential part of modern utility operations.

The concern is transparency and accountability.

If engineering data, system inputs, demand forecasts, or EMS-derived operational outputs are used to support assumptions that ultimately affect utility rates, customers should not be left to guess how those numbers were produced or how they entered the rate-setting process.

A disputed rate increase should therefore be examined from the entire chain of information:

Meter Data → Gas/Electric Operational Data → EMS and Other Engineering Systems → Forecasts and Cost Models → Regulatory Filings → Tariff Approval → Customer Billing

If there is evidence that an increase was not authorized, was calculated contrary to the approved tariff, or resulted from inaccurate or improperly applied information, that evidence should be independently reviewed and made available to the public.

What Customers Have a Right to Know

Customers should be able to obtain a straightforward explanation of:

• The exact legal authority for every rate increase;
• The tariff provision authorizing each charge;
• The operational and financial data supporting the increase;
• The role of EMS and other engineering systems in generating that data;
• The methodology used to convert operational information into forecasts or cost assumptions;
• The regulatory filings in which those assumptions appeared;
• The identity of the parties responsible for reviewing and approving the calculations; and
• The specific reason the disputed increase was reversed.

The fundamental issue is accountability. Customers should not be expected to accept unexplained increases in gas or electric charges without being given a transparent accounting of how the rates were calculated, what data supported them, and what regulatory authority permitted the utility to collect them.