The Georgia Public Service Commission yesterday OK’d a plan that will allow Georgia Power Co. to develop its own solar energy projects, while rejecting a proposal that would have required the utility to purchase from third-party solar power developers.

The news comes after months of criticism that Georgia Power, a subsidiary of Southern Company, hasn’t done enough to add renewable energy generating capacity to its electricity mix. To meet customer demand, the utility group relies heavily on coal, the dirtiest conventional source of electricity.

By a margin of four to one, commissioners approved Georgia Power’s 2010 Integrated Resource Plan, a three-year roadmap detailing how the company aims to diversify its energy portfolio. Accordingly, the utility will rely predominantly on nuclear power and natural gas, while “de-emphasizing the role of coal because of cost volatility and uncertainty over future federal environmental regulation and legislation,” according to Atlanta Business Chronicle.

While news of new solar projects is always welcomed by this blog, the total amount in this case is relatively small: Georgia Power got approval to build up to one megawatt of solar generating capacity. In Michigan, which has about as many residents as Georgia, DTE Energy is aiming to install 15 megawatts of solar capacity within its service territory.