Municipal Electric Authority of Georgia (MEAG Power) Market Research Report

Background

The Municipal Electric Authority of Georgia (MEAG Power) is a nonprofit, statewide generation and transmission organization established in 1975 by the Georgia General Assembly. MEAG Power's mission is to provide reliable, competitively priced wholesale electricity to 49 member communities, known as Participants, which own and operate their local electric distribution systems. These Participants collectively serve approximately 635,000 customers across Georgia.

MEAG Power is recognized as one of the leading joint action agencies in the United States, ranking among the top public power companies in terms of annual net generation, megawatt-hour sales, and electric revenue. The organization emphasizes a diverse, clean energy portfolio, delivering, on average, 65% emissions-free energy since 2016, which compares favorably with both state and national averages.

Key Strategic Focus

MEAG Power's strategic focus centers on:

Reliable and Affordable Power Supply: Ensuring a consistent and cost-effective electricity supply to its member communities.

Diverse Energy Portfolio: Maintaining a mix of generation sources, including nuclear, natural gas, coal, and hydropower, to enhance energy security and sustainability.

Infrastructure Development: Owning and operating an extensive transmission network, including 1,300 miles of high-voltage transmission lines and more than 210 substations, to facilitate efficient power distribution.

Advocacy and Policy Engagement: Monitoring and advocating on energy issues at the state and federal levels on behalf of its Participants.

Financials and Funding

MEAG Power operates as a nonprofit entity, focusing on providing affordable electricity rather than generating profit. The organization has substantial assets, with a reported value of $4.7 billion. In August 2024, MEAG Power planned to sell $373 million in subordinated bonds to fund capital projects and refinance existing debt.

Pipeline Development

MEAG Power's generation capacity includes:

Nuclear Power: 17.7% ownership in the Edwin I. Hatch Nuclear Power Plant and 22.7% in the Vogtle Electric Generating Plant.

Coal-Fired Generation: 15.1% ownership in Plant Scherer.

Natural Gas: Full ownership of a combined-cycle gas-fired unit at the Hal B. Wansley Power Plant.

Hydropower: Transmission of hydropower from dams operated by the Southeastern Power Administration.

In 2022, MEAG Power joined the Southeast Energy Exchange Market, facilitating energy trading across the region.

Technological Platform and Innovation

MEAG Power's technological platforms and innovations include:

Integrated Transmission System (ITS): A 17,800-mile transmission network covering 90% of Georgia, co-owned with Georgia Transmission Corporation, Dalton Utilities, and Georgia Power.

High-Voltage Transmission Network: Ownership of 1,300 miles of high-voltage transmission lines and more than 210 substations, ensuring efficient power distribution.

Leadership Team

The leadership team at MEAG Power includes:

James E. Fuller: President and Chief Executive Officer.

Robert P. Johnston: Executive Vice President and Chief Financial Officer.

E. Scott Miller: Senior Vice President of Operations.

Clint Ginn: Senior Vice President of Power Supply.

Bill Said: Senior Vice President of Transmission and Distribution.

Chris Merrell: Vice President of Regulatory Affairs.

Frederick Law: Vice President of Legal Affairs and General Counsel.

Bradley Spooner: Vice President of Engineering.

Doug Moore: Vice President of Information Technology.

Steve A. Rentfrow: Vice President of Human Resources.

Competitor Profile

Market Insights and Dynamics

The electric utility industry in Georgia is characterized by a mix of investor-owned utilities, electric membership corporations (EMCs), and municipally owned electric systems. Key players include Georgia Power Company, an investor-owned utility serving approximately 2.7 million customers, and various EMCs and municipal utilities.

Competitor Analysis

Georgia Power Company: An investor-owned utility serving a significant portion of Georgia's population, with a diverse generation portfolio and substantial infrastructure.

Oglethorpe Power Corporation (OPC): A generation and transmission cooperative supplying energy to EMCs from a mix of coal, nuclear, and hydroelectric sources.

Sawnee Electric Membership Corporation (EMC): A cooperative serving parts of northern Georgia, with a focus on providing reliable electricity to its members.

Cobb Electric Membership Corporation (EMC): Serving parts of Cobb, Cherokee, Bartow, Paulding, and small sections of Fulton counties, providing electricity to approximately 200,000 homes and businesses.

Strategic Collaborations and Partnerships

MEAG Power collaborates with various entities to enhance its service offerings and operational efficiency. Notably, in August 2023, MEAG Power partnered with the Municipal Gas Authority of Georgia to foster statewide economic development, aiming to provide a robust pipeline of resources and leverage local experience to attract businesses to Georgia.

Operational Insights

MEAG Power's extensive transmission network and diverse generation portfolio position it as a significant player in Georgia's energy sector. The organization's focus on clean energy and infrastructure development provides a competitive edge in delivering reliable and affordable electricity to its member communities.

Strategic Opportunities and Future Directions

MEAG Power's strategic roadmap includes:

Renewable Energy Integration: Expanding the share of renewable energy sources in its generation mix to meet evolving energy demands and environmental standards.