Georgia PSC Approves Georgia Power Rate Increases Again, More Increases to Come 

Georgia Power customers will face another rate increase starting January 1, marking the sixth price hike in just two years. The Georgia Public Service Commission (PSC) approved the 3.5% increase on December 19, with the vote passing unanimously among the five Republican commissioners. This increase is part of a rate plan initially approved in late 2022, which outlined incremental increases for 2023, 2024, and 2025.

The company has cited the need for additional funds to cover fuel costs, grid improvements, investments in cleaner energy, and upgrades to customer service. As a result, Georgia Power will collect an additional $306 million from ratepayers in 2024. For the average residential customer, this translates to an increase of about $5.84 per month, raising the average monthly bill from $165 to approximately $171.

These rate hikes have significantly impacted Georgia Power customers. Since 2023, the average customer’s bill has increased by about $43, in part due to the expansion of the Plant Vogtle nuclear facility and rising fuel costs.

Commissioner Lauren “Bubba” McDonald, who was the only commissioner to oppose Georgia Power’s rate hikes in 2022, expressed his disagreement with the proposed increase during committee meetings last week. He argued that raising rates again was inappropriate, especially given the economic pressures of inflation and the devastation caused by Hurricane Helene, which severely impacted homes and businesses across Georgia and left nearly half of Georgia Power’s 2.7 million customers without power. Citing the significant profits reported by Georgia Power’s parent company, Southern Co., McDonald urged the utility’s leadership to maintain the 2024 rates, suggesting they “suck it up a little bit.” “Let’s be good citizens and good Americans and work through this,” McDonald added.

Despite McDonald’s concerns, he and fellow PSC members voted to approve the increase.

The increase may not be the last. In October, Southern Co., Georgia Power’s parent company, reported that Hurricane Helene caused an estimated $1.1 billion in damage to its system. Although Georgia Power maintains a storm recovery account, it is currently in deficit, and the company has indicated that storm-related costs may be passed on to customers in future rate filings.

Georgia Power’s parent company reported a 10.9% return on equity for 2023, meeting its earnings target but not exceeding the threshold that would require the company to share profits with customers.