ATLANTA — Georgia Power customers will see a slight reduction in power bills after the state agency that regulates the monopoly utility approved rate changes Thursday.
The Public Service Commission, an elected body with five members, had previously frozen the company’s electricity rates for three years. But that decision in early 2025 did not apply to rate adjustments to cover the changing cost of fuel and storm damage.
Rather than raising rates, the agreement Georgia Power made with the commission will cut typical residential customer bills by about $4 a month, or about $285 million collectively per year.
“After recent rate increases caused by inflation, the war in Ukraine and other global phenomenon, it’s great to be able to offer some relief to Georgia Power ratepayers,” Chairman Jason Shaw said in a written statement after the vote approving the changes.
Georgia Power is reducing the rates in part by using federal tax credits for nuclear power production.
Although the vote for approval was unanimous, two new Democrats on the panel voted unsuccessfully to amend the rate agreements, with the three Republicans opposed.
Commissioner Peter Hubbard, one of the Democrats, said his four amendments would have saved ratepayers another $50 million.
“Instead, the majority put the company first,” he said in a statement.
Hubbard said he voted for the unamended agreements to lock in “as much relief as possible” ahead of summer, with the revised rates taking effect in June.
During the hearing, critics said Georgia Power was still getting a deal because the company secured authority to purchase more coal than usual at above-market prices.
Under Georgia law, the company can pass along fuel prices to customers if they are “just and reasonable.”
Commission staff said during the hearing that Georgia Power had historically purchased about a tenth of its coal at above-market rates. The deal approved Thursday allowed it to purchase up to 15% at higher prices.
Environmentalists had wanted the limit set at 5% but acknowledged the commission staff had negotiated a better deal for ratepayers than Georgia Power had first offered.
The company’s initial rate proposal earlier this year would have saved customers only about $1.30 a month.
Georgia Power will make another fuel rate adjustment request in less than three years, in February 2029.
The storm damage portion of the costs being passed to consumers was mostly from Hurricane Helene. Georgia Power has said the historic hurricane caused $800 million in damage to about 12,000 power poles, 1,500 miles of power lines and more than 5,000 transformers.
The Republican-led commission has become a target for angry voters after allowing Georgia Power to make a half dozen rate increases in recent years. The commission also approved a 10 gigawatt expansion in December, largely to serve anticipated demand from data centers.
In a special election last year, Hubbard unseated Republican Fitz Johnson. Johnson is back on the ballot and will try to retake the seat from Hubbard in the November general election.
Likewise, Democrat Alicia Johnson unseated a Republican last year, winning a spot on the commission through 2030. Another seat is in play after Republican Tricia Pridemore opted not to run for reelection, creating the possibility of Democratic control next year.
