Commission approves Georgia Power fuel rate decrease

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The Georgia Public Service Commission has approved a deal to lower the rate Georgia Power charges for fuel. The change is expected to reduce power bills for millions of Georgians.

“It’s great to be able to offer some relief to Georgia Power ratepayers,” commission chair Jason Shaw wrote in a statement, where he acknowledged recent bill increases that he blamed on inflation, the war in Ukraine and other global events. 

The commission was considering two issues at the same time: the cost of the fuel, such as coal or natural gas, that runs power plants, and the cost of cleaning up from Hurricane Helene – the most destructive storm in Georgia Power’s history. Under Georgia law, utility customers pay for both.

The lower fuel rate offsets the hurricane costs, resulting in a net decrease to power bills. 

A deal between Georgia Power, the commission’s public interest advocacy staff, and some of the intervening parties increased the savings beyond what Georgia Power had initially proposed. Under that agreement, which the commission approved unanimously on Thursday, the monthly bill for a typical, 1000-kilowatt-hour customer will go down by about $4.

The deal also calls for an investigation into how large utility customers like data centers pay for fuel, to make sure costs aren’t getting shifted onto ordinary customers.

Commissioner Peter Hubbard, one of two Democrats newly elected to the commission, introduced several amendments to the agreement. They aimed to address issues related to how and when Georgia Power buys and uses coal, how much the utility is able to recoup for storm costs, and other concerns. Hubbard and fellow Democrat Alicia Johnson both voted for these motions, but they ultimately failed.

“We missed opportunities to save Georgia families another $50 million,” said Hubbard in a statement. “Instead, the majority voted to put the company first. That’s not why voters sent us here.” 

The changes to power bills go into effect June 1. The same day, Georgia Power’s higher summer electricity rate kicks in. That rate coupled with increased power usage as temperatures rise means that bills may not decrease from this month to next, though the company expects June bills to be lower than a year ago.