Georgia Power’s Rate Freeze Agreement Faces Criticism Amid Rising Bills

ATLANTA, Ga. — Georgia Power has reached an agreement with the Public Service Commission (PSC) to maintain its current base electricity rates for the next three years, responding to customer backlash over rising power bills. The agreement, announced on Monday, the so-called ‘stipulated agreement,’ will prevent the company from filing a rate adjustment request this summer.

However, this agreement, which still needs approval from the five Republican members of the PSC, includes exceptions that could result in future bill increases. If accepted, it allows commissioners to dodge rate votes ahead of the upcoming primary and general elections.

The base rates will remain unchanged until 2028. On the other hand, Georgia Power will still be able to seek approval from the PSC to recover significant storm-related costs from customers. The largest portion of these costs stems from Hurricane Helene, which the company has termed the most destructive storm in its history, leading to an outstanding claim of $830 million.

Georgia Power spokesperson Jacob Hawkins stated, “This agreement balances the affordability needs of our customers while ensuring Georgia Power remains equipped to continue its support of our state’s incredible growth.” In context, the company’s earnings target remains at a 10.5% return on equity, as determined by the PSC framework established in 2022.

Tom Krause, a PSC spokesperson, noted that previous agreements to freeze rates occurred in 1995 and 2016. Yet, consumer advocates argue that this latest deal lacks transparency. Jennifer Whitfield of the Southern Environmental Law Center warned, “Bills for residential and small business customers will rise under this agreement.”

Codi Norred, executive director of Georgia Interfaith Power and Light, remarked that skipping comprehensive rate case proceedings shields Georgia Power’s financial records from public examination. Hawkins, however, asserted that the deal begins an “open and transparent process” that will allow for public input.

The PSC is facing mounting pressure as the average residential power bill has surged by about $43 due to six previous rate hikes since late 2022. With elections approaching, PSC Chairman Jason Shaw noted the significance of the agreement, stating, “This is nothing but good news for Georgia Power ratepayers.”

Upcoming elections will have implications for two PSC commissioners, Tim Echols and Fitz Johnson, both of whom voted for the rate increases. Both incumbents will face challengers in their respective districts during the June 17 primaries, while general elections are scheduled for November 4.