Georgia Power has announced a proposal to refrain from raising base rates for the next three years, following an agreement with the state Public Service Commission’s (PSC) Advocacy Staff. This proposal, if approved by the five-member PSC, would cancel a rate case that Georgia Power intended to submit by July 1.
This decision comes on the heels of three rate increases that the utility implemented over the past six years, which have drawn criticism from consumer advocacy groups and environmental organizations. The state Senate had earlier addressed the issue of prohibiting the utility from transferring the costs associated with servicing energy-hungry data centers to consumers, but the proposed legislation failed to progress beyond the Senate Regulated Industries and Utilities Committee.
Georgia Power’s spokesman, Jacob Hawkins, expressed that the agreement aims to ensure that all customers can benefit from the growth of the utility and the state at large. However, concerns have been raised by the Southern Environmental Law Center. Senior attorney Jennifer Whitfield remarked that the agreement includes a clause that allows for exceptions regarding costs incurred from storm damage, like the significant impacts of Hurricane Helene last September. She argued that this could lead to higher bills for customers, as the PSC waived public hearings that typically accompany a rate case.
Whitfield failed to hide her apprehensions about the potential hidden costs associated with the rate freeze, suggesting that consumers might see bill increases as soon as next May. The PSC will have to make a decision on this agreement by July 1; if it is not approved, Georgia Power will proceed with the planned rate case.
While the proposal provides a temporary reprieve for customers, the ongoing dialogue around the utility’s rising costs and environmental impact highlights the need for continued oversight and transparency in the regulatory process.