ATLANTA – Georgia Power will not seek to raise base rates for the next three years under a proposed agreement the Atlanta-based utility announced Monday.
The agreement between the company and the state Public Service Commission’s (PSC) Advocacy Staff – if approved by the five-member PSC – would cancel the rate case Georgia Power was planning to submit to the commission by July 1.
Georgia Power has increased its customer rates three times in the last six years and has been criticized by consumer watchdog groups and environmental advocates for doing so.
The state Senate considered legislation during this year’s General Assembly session to prohibit the company from passing on the costs of providing electricity to the giant power-hungry data centers cropping up across Georgia. But the bill didn’t make it through the Senate Regulated Industries and Utilities Committee, as opponents argued the PSC already had taken that step by passing a new rule earlier this year.
“We are well-positioned to balance mutual benefits that are available as a result of the extraordinary economic growth taking place in our state,” Georgia Power spokesman Jacob Hawkins said Monday. “This stipulated agreement helps balance the affordability needs of our customers while ensuring Georgia Power remains equipped to continue its support of our state’s incredible growth – which is good for all of our stakeholders.”
But the Southern Environmental Law Center cried foul over the agreement. Jennifer Whitfield, a senior attorney in the group’s Atlanta office, pointed to a provision in the agreement that exempts “reasonable and prudent” costs incurred from storm damage from the rate freeze. That would include the massive damage Hurricane Helene wreaked on Georgia Power’s system last September.
Whitfield criticized the PSC for waiving the public hearings that would have taken place after Georgia Power filed its rate case. The hearings would have dealt with issues including the costs of storm damage and the impact of the rapidly growing number of data centers sucking up power.
Whitfield predicted those rising costs will force customer bills higher as early as next May.
“Commission staff has given away our hard-fought relief from data centers,” she said. “Make no mistake: Bills for residential and small business customers will rise under this agreement.”
Under the agreement, the PSC would consider any storm damage costs Georgia Power incurs in a separate regulatory proceeding next year. Then in 2028, when the utility files its next rate case, the agreement would require the company to make sure data centers cover their costs and don’t pass them on to ratepayers.
The commission must vote on the agreement by July 1. Otherwise, Georgia Power would move forward with its rate case.
The PSC is planning to hold public hearings on the agreement before voting on it.