Georgia residents grappling with their energy bills may find some clarity in a new glossary that breaks down the complex ins and outs of the state's electricity and energy policy. WABE, in collaboration with Grist, recently published a guide aimed to shed light on the workings of the Georgia Public Service Commission (PSC), the body that regulates utilities and decides the fate of electricity rates and energy production in the Peach State.
Understanding the PSC is crucial since it's a five-member elected board charged with making decisions that directly impact the wallets of Georgians. New terms, like "rate," which is the price per kilowatt-hour of electricity, and "rate structure" or "tariff," referring to the entire make-up of electric bills, are part of the arsenal of jargon demystified in the guide. As reported by WABE, the average retail rate in Georgia as of February 2024 stands at 12 cents per kilowatt-hour, and it's the PSC that has the final say in approving these rates for investor-owned utilities like Georgia Power.
The profile of a "ratepayer" in Georgia varies significantly, ranging from ordinary residents to small businesses and large factories, all dealing with different costs. The PSC also oversees Integrated Resource Plans (IRPs), which outline a 20-year strategy for electricity provision, updated triennially with inputs from both the commission and concerned stakeholders, dubbed as "intervenors."
These intervenors can range far and wide, involving consumer and environmental advocacy groups to cities and federal agencies, and they hold the power to cross-examine Georgia Power reps and bring their own witnesses to influence what the company proposes. According to the glossary provided by WABE, this exchange is crucial during the "rate case," the triennial process that determines the rates Georgia Power can charge its customers.
For Georgians who want to delve deeper into the types of electricity providers, the glossary illuminates the differences between investor-owned utilities like Georgia Power, electric cooperatives more common in rural areas, and publicly owned utilities that operate as local government divisions but are not regulated by PSC, except when it comes to territorial disputes.
On the technology and energy generation side, terms like "megawatt" and "kilowatt-hour" explain the units of power generation and energy consumption. Energy aficionados might note that Georgia's Plant Vogtle Unit 3 can generate over a 1,000 MW, sufficient to power half a million homes and businesses, as reported by WABE. With Unit 4 expected to come online this year, these reactors, steeped in construction delays and cost overruns, are indeed influencing Georgians' energy landscape.
WABE's glossary further touches on certain federal laws impacting how utilities function. Here, the Inflation Reduction Act of 2022 stands out, being hailed as an unprecedented move in the fight against climate change with a focus on incentives for clean energy and efficiency.
Against the backdrop of these technical and legal facets, lies the everyday reality of the 'energy burden,' a term defining how much of a household's income is dedicated to energy bills. With such a burden weighing down disproportionately on low-income households (8.6% of their income on average, as opposed to just 3% for non-low-income households), WABE's glossary empowers Georgians with knowledge, potentially enabling informed dialogue and decision-making regarding their energy futures.
To view the complete guide and to get to grips with the minutiae of Georgia's energy and electricity policy, visit WABE's dedicated section.
