State energy regulators Tuesday unanimously approved Georgia Power’s plan to freeze customer rates for the next three years.
Under an agreement the Atlanta-based utility and the Georgia Public Service Commission’s Public Interest Advocacy Staff reached in May, Georgia Power will not seek to raise base rates until 2028 at the earliest. However, the agreement excludes “reasonable and prudent” costs the utility has incurred from storm damage, mostly from Hurricane Helene, a major sticking point with environmental groups that opposed the plan. Rates could still go up next year when commissioners consider how customers will pay for $862 million in storm damage, mainly due to the hurricane.
A key point of contention in the agreement is the profits Georgia Power will be allowed to recover on its investments. The agreement’s opponents also objected to the commission’s decision to freeze rates without the usual months-long process of hearings that would have let the public weigh in on the plan.
The deal comes even as commissioners are still considering Georgia Power’s three-year plan to generate enough electricity to meet the state’s needs. That plan foresees a very large increase in electrical demand, requiring new power plants or new purchases from existing plants.
Opponents argue that customers could face risks later if costs to serve new computer data centers pile up. The five Republicans on the Georgia Public Service Commission voted unanimously for the plan after regulatory staff and the company agreed to it earlier.
Commissioner Lauren McDonald on Tuesday unsuccessfully attempted to limit how much the company can earn on the money it has invested.
Opponents noted that the company had promised “downward pressure” on rates last year when the commission approved an unusual request for Georgia Power to build more power plants outside the regular schedule and asked why rates were staying flat instead of going down.
