WEBVTT - Georgia Gov. Brian Kemp Talks Growing Energy Needs 0:00:02.480 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.320 --> 0:00:09.680 I'm pleased to say that I'm joined now by Republican 0:00:10.080 --> 0:00:13.480 Governor of Georgia, Brian Kemp, Governor. It's so nice to 0:00:13.520 --> 0:00:16.600 see you here in Las Vegas. You're normally in Atlanta. 0:00:16.640 --> 0:00:20.680 I'm normally in Washington, but we both find ourselves here 0:00:20.720 --> 0:00:24.280 on the sidelines of an energy conference because the idea 0:00:24.400 --> 0:00:28.360 of electricity demand tie to data centers has become a 0:00:28.480 --> 0:00:31.280 nationwide issue and we wanted to talk to you today 0:00:31.520 --> 0:00:34.680 because Georgia is one of the fastest growing markets when 0:00:34.720 --> 0:00:37.879 it comes to data centers, and I'm curious, how prepared 0:00:38.080 --> 0:00:41.320 is your electric grid for this influx in demand. 0:00:41.640 --> 0:00:42.800 Well, we're very prepared. 0:00:43.200 --> 0:00:45.320 We got a great story to tell in Georgia, and 0:00:45.320 --> 0:00:48.160 it's not just for data centers, but also large load 0:00:48.240 --> 0:00:51.000 customers like the new Hyundai metaplant. Marty and I were 0:00:51.000 --> 0:00:55.920 there yesterday rolling the first new Sportage Kia Sportage Hybrid 0:00:55.960 --> 0:00:58.360 off of the line, so they're a huge power user. 0:00:58.800 --> 0:01:01.920 So we're not only ramping up our power supply for 0:01:02.480 --> 0:01:05.640 data centers, but also for large load customers, also making 0:01:05.640 --> 0:01:08.480 sure we take care of all our residential and other 0:01:08.720 --> 0:01:10.880 small business customers in Georgia, and we have a great 0:01:10.920 --> 0:01:13.840 story to tell. Our rates are dropping and our generations 0:01:13.920 --> 0:01:14.400 going up. 0:01:14.840 --> 0:01:17.479 But a big part of this demand is coming from 0:01:17.560 --> 0:01:21.560 data center. Is because Southern Company, which owns and operates 0:01:21.560 --> 0:01:25.920 Georgia Power, is estimating that power is expected to dump 0:01:26.000 --> 0:01:30.039 ten to eight to ten percent annually, driven solely by 0:01:30.480 --> 0:01:33.840 the AI build out. What can you share about how 0:01:33.880 --> 0:01:36.399 you are helping to keep rates down when you have 0:01:36.480 --> 0:01:39.600 these big tech companies that are coming in and there 0:01:39.680 --> 0:01:41.800 is this risk to consumers, Well. 0:01:41.680 --> 0:01:44.520 We're charging the big tech companies more. I mean, we've 0:01:44.560 --> 0:01:47.640 got a great rate structure in Georgia. Our Public Service Commission, 0:01:47.760 --> 0:01:50.680 the Georgia General Assembly, along with our power producers like 0:01:50.720 --> 0:01:53.840 Georgia Power, have put a structure in that as we 0:01:53.920 --> 0:01:56.240 build the generation out, they're going to do that by 0:01:56.400 --> 0:01:58.520 half of what they have now just in the next 0:01:58.640 --> 0:02:01.520 you know, less than ten years, which is pretty incredible 0:02:01.560 --> 0:02:03.760 that a state can do that to meet the demands 0:02:03.760 --> 0:02:06.800 of its customers, but also making them pay for that 0:02:06.840 --> 0:02:09.360 build out and tying that into rates long term. 0:02:09.360 --> 0:02:10.799 It's actually allowed. 0:02:10.680 --> 0:02:13.680 Georgia Power a year or so ago to freeze residential 0:02:13.760 --> 0:02:16.440 rates for three years in Georgia. Since then, they've actually 0:02:16.520 --> 0:02:19.440 dropped residential rates by a few dollars a month, and 0:02:19.520 --> 0:02:21.839 in the future they're going to be giving money back 0:02:21.880 --> 0:02:24.240 to the rate payers as this build out continues. So 0:02:24.280 --> 0:02:27.160 it's really unlike any other model in the country where 0:02:27.200 --> 0:02:30.320 you have other states, other markets where rates are going 0:02:30.400 --> 0:02:33.280 up anywhere from fifteen to thirty percent. And for us, 0:02:33.320 --> 0:02:36.120 that's a great economic advantage for us to sell the 0:02:36.120 --> 0:02:39.239 state saying, come, we have clean energy with Vogel three 0:02:39.240 --> 0:02:41.920 and four online now a lot of solar, we can 0:02:42.000 --> 0:02:44.560 meet your needs. But also your cost is going to 0:02:44.560 --> 0:02:46.040 be as good as anywhere in the country. 0:02:46.080 --> 0:02:48.440 I'm glad that you brought up that reate freeze because 0:02:48.440 --> 0:02:50.680 they wanted to ask you about it because Georgia Power 0:02:50.760 --> 0:02:54.000 received one of the largest federal energy loans in history. 0:02:54.000 --> 0:02:57.640 It was twenty two billion dollars. But repairs are going 0:02:57.680 --> 0:03:00.440 to be on the hook to pay that loan back. Great, 0:03:00.520 --> 0:03:03.440 So should Georgia consider extending that rate for you? 0:03:04.160 --> 0:03:04.520 It's no. 0:03:05.000 --> 0:03:09.000 Well, they've actually done away with the rate freeze now 0:03:09.320 --> 0:03:12.560 and or lowering rates. So you know there was a 0:03:12.639 --> 0:03:15.960 rate freeze. Now they've gone back and said hey, because 0:03:15.960 --> 0:03:17.919 of the business that we have come and the way 0:03:17.960 --> 0:03:19.919 we've structured the deals, we're now going to be able 0:03:19.919 --> 0:03:22.600 to lower rates by I can't remembers five or six 0:03:22.639 --> 0:03:25.760 dollars a month per customer from the residential side. And 0:03:25.800 --> 0:03:28.519 then in the future with even more of this coming 0:03:28.639 --> 0:03:31.919 also large load customers. Like I mentioned the Hyundai metaplant, 0:03:31.960 --> 0:03:34.760 the Ribean plant's going to come online. We have other 0:03:34.840 --> 0:03:37.680 big manufacturers that are coming to our state, producing great 0:03:37.720 --> 0:03:41.960 paying jobs with great benefits, bringing economic prosperity to all 0:03:42.000 --> 0:03:44.320 parts of our state. They're actually going to be able 0:03:44.360 --> 0:03:47.440 to lower rates and return money to the taxpayer. 0:03:47.480 --> 0:03:49.080 I know that is hard to believe because that. 0:03:49.120 --> 0:03:51.920 Is not happening anywhere else in the rest of the country, 0:03:51.920 --> 0:03:54.160 which is why our story is so compelling. 0:03:54.600 --> 0:03:56.880 Well, part of this is also coming into the politics 0:03:56.920 --> 0:03:59.400 of the state. We're seeing it in the gubernatorial racer 0:03:59.480 --> 0:04:02.320 term limit. But we have the Democratic candidate Keisha Lance 0:04:02.360 --> 0:04:06.160 Bottoms advocating that we should see a freezing construction when 0:04:06.160 --> 0:04:08.600 it comes to this. Has any party for. 0:04:08.760 --> 0:04:12.440 That's just an insane position to take, because you know, 0:04:12.520 --> 0:04:14.640 I was down in Early County, Georgia. It's one of 0:04:14.680 --> 0:04:17.560 the poorest counties in the United States of America, and 0:04:17.640 --> 0:04:19.240 they as soon as I got out of the car, 0:04:19.320 --> 0:04:21.680 were coming to me, going, please help us with our 0:04:21.760 --> 0:04:24.000 data center. We want to build a data center here. 0:04:24.040 --> 0:04:26.560 We know that will provide good paying jobs for our 0:04:26.600 --> 0:04:29.599 community because they just had a sawmill that shut down, 0:04:29.640 --> 0:04:31.680 and they know that it'll be good for helping them 0:04:32.040 --> 0:04:35.600 reduce property taxes like they're doing in Columbia County. Now, 0:04:35.600 --> 0:04:37.279 I'm not saying we need to put a data center 0:04:37.320 --> 0:04:39.560 in every community. We certainly don't need to be pushing 0:04:39.560 --> 0:04:42.040 them in communities where the local governments and the people 0:04:42.080 --> 0:04:44.240 don't want it. But there are many places around the 0:04:44.240 --> 0:04:46.520 state where people do want it, and that's where we 0:04:46.560 --> 0:04:48.839 need to work with them. So I think it's irresponsible 0:04:49.520 --> 0:04:52.240 for Keisha Lance Bottoms to say freeze construction. I mean, 0:04:52.240 --> 0:04:54.159 we're the number one state in the country for business. 0:04:54.240 --> 0:04:57.120 We're producing jobs in all parts of our state, and 0:04:57.160 --> 0:04:58.920 that is my goal that I'm going to continue to 0:04:58.960 --> 0:05:00.839 work on as long as i'm if. 0:05:00.720 --> 0:05:04.800 We broaden this out to beyond electricity prices energy prices 0:05:04.880 --> 0:05:09.360 in general. Yesterday in Georgia we saw that suspension of 0:05:09.400 --> 0:05:13.200 the state gas task expire. There's so much emphasis on 0:05:13.240 --> 0:05:16.640 this these days due to the ongoing conflict in Iran, 0:05:16.680 --> 0:05:19.720 which at this point we still don't have a resolution to. 0:05:19.920 --> 0:05:23.239 Why was now the right moment to let that suspension last. 0:05:23.320 --> 0:05:27.120 Well, it's very expensive doing the gas tax suspension because 0:05:27.160 --> 0:05:29.200 we have to take money out of the state's reserve 0:05:29.320 --> 0:05:31.960 fund to put back into our road fund so we 0:05:32.000 --> 0:05:35.239 don't lose the ability to keep up our roads, bridges, 0:05:35.279 --> 0:05:38.640 paving roads for local communities, and doing projects that are 0:05:38.720 --> 0:05:39.839 very important to the state. 0:05:39.920 --> 0:05:41.240 So we couldn't do that forever. 0:05:41.760 --> 0:05:44.200 You know, I appreciate the General Assembly passing that bill 0:05:44.279 --> 0:05:47.080 during the legislative session. We extended it to get past 0:05:47.160 --> 0:05:50.160 the holiday weekend. And look, I'm like everybody else. I 0:05:50.200 --> 0:05:52.800 hope the conflict gets resolved sooner rather than later. And 0:05:52.839 --> 0:05:55.359 I believe that, you know, motor fuel and decent fuel 0:05:55.400 --> 0:05:57.520 prices will will drop. But if you look at what 0:05:57.560 --> 0:06:00.440 the state has been doing for affordability, you mean, at 0:06:00.480 --> 0:06:02.960 the same time we suspended the gas tax, he also 0:06:03.040 --> 0:06:06.480 had us given two hundred and fifty dollars rebates income 0:06:06.520 --> 0:06:09.479 tax rebates to everybody that paid taxes last year, five 0:06:09.560 --> 0:06:12.720 hundred dollars for a family. We've got a billion dollars 0:06:12.720 --> 0:06:15.479 of property tax or leaf coming to the citizens of 0:06:15.480 --> 0:06:15.920 our state. 0:06:16.000 --> 0:06:17.160 So we've been dealing. 0:06:17.800 --> 0:06:19.680 With affordability for the last four years. 0:06:19.680 --> 0:06:21.279 This is a fourth year in a row we've done 0:06:21.279 --> 0:06:25.200 a income tax rebate. We've cut the income tax both 0:06:25.240 --> 0:06:28.360 corporate and personal again this year, fourth year in a row, 0:06:28.400 --> 0:06:32.640 we did no tax on tips, tax on overtime. And 0:06:32.680 --> 0:06:35.080 so you know, we wanted to help with the motor 0:06:35.080 --> 0:06:38.640 fuel situation to get people into the summer and help 0:06:38.640 --> 0:06:41.240 our school districts and other small businesses get past the 0:06:41.279 --> 0:06:42.000 holiday weekend. 0:06:42.160 --> 0:06:44.440 But we are gearing up for some of the busiest 0:06:44.560 --> 0:06:48.240 driving time in this country. I can say I did 0:06:48.240 --> 0:06:50.800 ask President Trump last week if the federal government is 0:06:50.800 --> 0:06:54.599 still considering a federal gas tax holiday. It seems to 0:06:54.600 --> 0:06:56.760 be something that's still on the table. But the look 0:06:56.760 --> 0:06:59.360 at states like Georgia sort of as a template here 0:06:59.640 --> 0:07:01.840 on what would really work. Do you think that at 0:07:01.839 --> 0:07:03.000 the federal level that's. 0:07:02.839 --> 0:07:05.160 Something worth I think, you know, we're in a completely 0:07:05.160 --> 0:07:06.880 different situation in the federal government. 0:07:06.920 --> 0:07:08.160 We have to balance our budget. 0:07:08.160 --> 0:07:10.000 If you look at like a lot of the blu 0:07:10.120 --> 0:07:12.880 run states with democratic governors, they're not in a position 0:07:12.960 --> 0:07:14.920 to do this because they don't have the money to 0:07:15.000 --> 0:07:18.280 replace it. That's going into a dedicated motor fuel fund 0:07:18.280 --> 0:07:21.800 to help keep red roads, pay bridges built. 0:07:21.520 --> 0:07:24.440 And keep up with congestion demand in the state. 0:07:24.480 --> 0:07:28.120 We've been very fortunate because we've budgeted conservatively, we had 0:07:28.160 --> 0:07:30.880 a robust rainy day fund, and we were able to 0:07:30.920 --> 0:07:34.640 offset the money that we're you know, exempting for the tax. 0:07:34.680 --> 0:07:38.320 The federal government certainly doesn't have the money to do that, 0:07:38.400 --> 0:07:40.360 which I think is where some of the pushback that 0:07:40.400 --> 0:07:43.840 has come. So it's really been a testament to our state, 0:07:43.880 --> 0:07:46.840 to the leadership that we've had in our state to 0:07:46.880 --> 0:07:48.640 be able to even do this as much as we have, 0:07:48.720 --> 0:07:51.520 and we've done this for several years now. We've returned 0:07:51.600 --> 0:07:55.440 or saved taxpayers over twelve billion dollars just since we 0:07:55.520 --> 0:07:57.440 came out of COVID in the state of Georgia. There's 0:07:57.480 --> 0:08:01.120 not many states that can say per capital person that 0:08:01.200 --> 0:08:03.760 amount of savings or refunds like we've done in Georgia. 0:08:03.760 --> 0:08:06.080 And this because we've had good leadership, not just from 0:08:06.360 --> 0:08:09.080 the governor's office, but from the General Assembly. And that's 0:08:09.120 --> 0:08:10.880 what this election is all about. You know, you've got 0:08:10.960 --> 0:08:15.520 Keisha Lance Bottoms wanting to put moratoriums on growth and 0:08:15.600 --> 0:08:18.920 business and driving our economy, and we're doing things. 0:08:18.680 --> 0:08:20.480 Like this to help people with affordability. 0:08:20.560 --> 0:08:22.640 Well, since you brought up politics in the final minutes, 0:08:22.640 --> 0:08:25.400 I have you I have a few questions on that. Yes, 0:08:25.440 --> 0:08:28.280 on the gubernatorial race, but also there's a key runoff 0:08:28.440 --> 0:08:31.360 next week when it comes to the Senate seat. Do 0:08:31.400 --> 0:08:34.920 you think Republicans are positioned well right now in order 0:08:34.960 --> 0:08:37.880 to retain the majorities in Congress and given all of 0:08:37.880 --> 0:08:41.720 these headwinds that we're seeing around the affordable affordability issues 0:08:41.760 --> 0:08:42.960 that you yourself are talking about. 0:08:42.960 --> 0:08:45.719 Well, I think there's no doubt this is a challenging 0:08:45.800 --> 0:08:49.000 political environment, and it always is for any you know, 0:08:49.080 --> 0:08:52.400 majority party in the second term of a presidential administration, 0:08:52.480 --> 0:08:55.319 whether it's Donald Trump or anybody else. But I feel 0:08:55.400 --> 0:08:58.360 very optimistic because of the thing, at least in Georgia anyway, 0:08:58.440 --> 0:09:00.080 because of the things that we've been able to do 0:09:00.160 --> 0:09:02.240 in our state, the policies that we can run on 0:09:02.400 --> 0:09:05.000 and remind people of things that we've pushed and that 0:09:05.040 --> 0:09:07.760 we have done, and also what we're going to do 0:09:07.840 --> 0:09:08.439 in the future. 0:09:08.920 --> 0:09:10.160 I feel very optimistic. 0:09:10.160 --> 0:09:12.840 I also feel optimistic about you know, getting one of 0:09:12.840 --> 0:09:16.200 our Senate seats back. I'm working hard for Derek Dooley, 0:09:16.200 --> 0:09:18.720 who I've endorsed to be our nominee because I think 0:09:18.800 --> 0:09:21.320 he's the best person that can can beat John oss 0:09:21.320 --> 0:09:23.920 Off and keep the majority of the US Senate. But 0:09:24.160 --> 0:09:26.520 I also think Republicans got to get on offense. We 0:09:26.559 --> 0:09:28.720 cannot continue to be on defense. We need to be 0:09:28.800 --> 0:09:32.160 on offense about what's in the Working Families tax Credit, 0:09:32.200 --> 0:09:35.040 all the good policies that Trump administration is doing, and 0:09:35.600 --> 0:09:38.280 not let the other side dictate what the political debate's 0:09:38.360 --> 0:09:39.319 going to be if. 0:09:39.280 --> 0:09:42.319 Derek Duley doesn't win that nomination, do you think Republicans 0:09:42.360 --> 0:09:45.360 should be spending their resources. I will swear to help 0:09:45.440 --> 0:09:48.000 boost other senateces across the country so that they can 0:09:48.120 --> 0:09:49.120 bertin the Senate majority. 0:09:49.200 --> 0:09:49.360 Yeah. 0:09:49.320 --> 0:09:51.080 I wouldn't want to speak for any other you know, 0:09:51.200 --> 0:09:53.439 national groups and what they might do, but I know. 0:09:53.440 --> 0:09:55.080 That our political groups will. 0:09:55.120 --> 0:09:57.560 I mean, I'm going to be supporting our Republican nominees. 0:09:57.960 --> 0:09:59.280 We have to win. In Georgia. 0:09:59.360 --> 0:10:01.760 We have a lot of state. We've had a great. 0:10:01.600 --> 0:10:04.640 Twenty year run when you think about our former Governor 0:10:04.679 --> 0:10:08.960 Sonny Purdue, Governor Nathan Dial my administration, and we need. 0:10:08.840 --> 0:10:09.440 To keep report. 0:10:09.480 --> 0:10:13.360 There's such a stark contrast between the Democrats and the 0:10:13.400 --> 0:10:15.800 Republicans and the kind of leadership that you would see 0:10:16.040 --> 0:10:18.320 in the Governor's office and in the US Senate, and 0:10:18.360 --> 0:10:21.360 so you know, I'm certainly going to be all in 0:10:21.440 --> 0:10:22.440 no matter what happens. 0:10:22.559 --> 0:10:25.880 So this is for twenty twenty six. Last question for you, Governor, 0:10:25.960 --> 0:10:29.040 your term limited. Should we expect you to stay in 0:10:29.080 --> 0:10:32.880 public life after your term is over? I'm wondering if 0:10:32.920 --> 0:10:33.360 you have a time. 0:10:33.360 --> 0:10:35.600 Oh, it's a great question. I'll have to come back 0:10:35.600 --> 0:10:36.400 and answer later. 0:10:37.720 --> 0:10:40.439 My focus is on helping Derek Dooley when the US 0:10:40.520 --> 0:10:42.880 Senate run off, and then after we get that done, 0:10:42.920 --> 0:10:44.480 I'll be able to think about other things. 0:10:44.559 --> 0:10:46.080 But do you have any timeline on if you're going 0:10:46.120 --> 0:10:47.520 to make a decision about twenty twelve. 0:10:47.559 --> 0:10:49.920 I mean, I still got to serve till you know, 0:10:49.960 --> 0:10:52.880 the first part of twenty twenty seven in this role, 0:10:52.960 --> 0:10:55.400 which it is very busy, and that is what my 0:10:55.440 --> 0:10:57.920 folk were. My focus is going to be and also 0:10:58.040 --> 0:11:00.880 helping make sure that our ticket win in November. That 0:11:01.000 --> 0:11:02.719 is our number one priority, all right. 0:11:02.760 --> 0:11:05.480 Republican and Governor of Georgia, Brian Kemp Governor, thank you 0:11:05.559 --> 0:11:07.400 so much for spending time with us today here on 0:11:07.400 --> 0:11:09.120 Bloomberg Television and radio.