Georgia Power customers will see a slight reduction in their monthly bills after the state agency that regulates the monopoly utility approved rate changes late last month.
The Georgia Public Service Commission, a five-member elected body, had previously frozen the company’s electricity rates for three years. That decision in early 2025 did not apply to adjustments related to fluctuating fuel costs and storm-damage recovery.
Rather than increasing rates, the agreement reached with Georgia Power will reduce typical residential customer bills by about $4 per month, or roughly $285 million collectively per year.
“After recent rate increases caused by inflation, the war in Ukraine, and other global phenomena, it’s great to be able to offer some relief to Georgia Power ratepayers,” Chairman Jason Shaw said in a written statement following the vote.
Georgia Power is achieving the reduction in part by applying federal tax credits tied to nuclear power production.
Although the vote was unanimous, two newly elected Democrats on the commission unsuccessfully sought to amend the agreement, while the three Republicans opposed the changes.
Commissioner Peter Hubbard, a Democrat, said his four proposed amendments would have saved ratepayers an additional $50 million.
“Instead, the majority put the company first,” he said in a statement.
Hubbard said he ultimately voted for the unamended agreement to secure “as much relief as possible” ahead of the summer, with the revised rates set to take effect in June.
During the hearing, critics argued Georgia Power still received favorable treatment, noting the company was granted authority to purchase more coal than usual at above-market prices.
Under Georgia law, the utility can pass fuel costs on to customers if they are deemed “just and reasonable.”
Commission staff said during the hearing that Georgia Power has historically purchased about one-tenth of its coal at above-market rates. The approved agreement allows it to purchase up to 15% at higher prices.
Environmental advocates had pushed for a 5% cap but acknowledged commission staff negotiated a better deal for ratepayers than the utility’s initial proposal.
Georgia Power’s original rate proposal earlier this year would have reduced bills by about $1.30 per month. The company is scheduled to file its next fuel rate adjustment request in February 2029.
The Republican-led commission has faced criticism from voters in recent years after approving multiple rate increases. The panel also approved a 10-gigawatt expansion in December, largely to meet projected demand from data centers.
In a special election last year, Hubbard unseated Republican Fitz Johnson, who is now seeking to reclaim the seat in the November general election.
Democrat Alicia Johnson also won a commission seat last year, securing a term through 2030. Another seat will be contested after Republican Tricia Pridemore chose not to seek reelection.