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Georgia Power and the Georgia Public Service Commission’s staff have reached a deal that, if approved by the commission, would save customers more money on their power bills.
The PSC, which has oversight over Georgia Power’s spending and prices, is considering two requests from the utility this month: changes to the rate Georgia Power charges for fuel and reimbursement for spending on recovering from Hurricane Helene. Taken together, the company estimated the adjustments would lower monthly bills by $1.32 for what it calls typical customers – those using 1,000 kilowatt-hours a month.
But the commission’s staff charged with representing the public interest argued that the fuel cost savings could be increased. They recommended the commission deny nearly $19 million in fuel costs related to power plant outages and argued for changing or terminating other elements of the fuel cost rate.
Now, the public interest advocacy staff and Georgia Power have signed a deal that removes $13 million dollars in fuel costs and more than $100 million from the storm cost request. This plan is expected to save $4.03 monthly for a 1,000 kilowatt-hour customer – $2.71 more savings a month than the utility originally proposed – though the actual amount will vary widely based on how much power customers use.
“We expect to be able to provide significantly more savings than we anticipated in February when we filed these cases,” said Tyler Cook, Georgia Power’s CFO and treasurer, in a statement. “Lower rates mean real savings for Georgia families and businesses as the heat of summer begins which can lead to higher bills.”
The deal also calls for the commission to investigate how large customers like data centers pay for fuel and potentially make changes to ensure ordinary customers aren’t paying data center costs.
Bills have increased six times since 2023, totaling more than $40 a month for a 1,000 kilowatt-hour customer. The largest increase came the last time Georgia Power adjusted its fuel rate, which added about $15.90 a month to that typical customer’s bill. Last year, the commission approved a three-year freeze on base rates with the caveat that Georgia Power could still request the fuel and storm cost adjustments currently before the commission.
The commission will hold hearings this week on the storm cost request and the newly-announced deal before voting on May 28. Commissioners can approve the deal as-is, change it, or reject it.
This type of deal, known as a stipulated agreement, is a common way for cases before the commission to be resolved.
