Georgia residents will face higher power bills in January as Georgia Power raises its rates by 3.5%. The average user, who consumes around 1,000 kilowatt hours per month, will see an increase of $5.85. The rate hike is expected to generate $306 million in revenue. The Georgia Public Service Commission emphasized the importance of funding to maintain grid stability, with Commissioner Tim Echols stating, “No one wants a rate increase, but in order to keep the grid going, we have to fund it,” in an Atlanta News First report.
The Georgia Public Service Commission's five Republican members unanimously approved Georgia Power's rate plan for 2023 to 2025 in late 2022. The company states the rate increases are necessary to cover grid improvements, cleaner energy, and customer service upgrades. Since 2023, these hikes have added about $43 to the average monthly bill, as reported by The Atlanta Journal-Constitution. However, Georgia Power assures customers that their rates are still 15% lower than the national average.
The rate increase comes after Southern Company, Georgia Power's parent company, reported profits of $3.9 billion in October, up from $3.1 billion last year. Despite higher expenses and taxes, Southern Company attributed the gain to weather factors and growth. Meanwhile, customers like Marcus, as mentioned in the Atlanta News First article, are concerned about the frequency and impact of the rate hikes, trying to mentally prepare for the financial strain on their budgets.
Commissioner Lauren "Bubba" McDonald expressed his opposition to the rate hike last week, citing the tough economic conditions and the impact of Hurricane Helene. He initially voted against the 2024 increase, urging Georgia Power to "suck it up a little bit," given the parent company's financial success. However, he later joined his colleagues in approving the rate hike, as noted by The Atlanta Journal-Constitution. Future increases are possible as Georgia Power faces an estimated $1.1 billion in damage from Hurricane Helene, leaving its storm recovery account in deficit.
As costs rise, Georgia Power is expanding assistance programs for customers in need to help offset higher bills. The effectiveness of these programs and the overall impact of the rate increase on the community will become clearer as Georgians prepare for the new year and their energy expenses.
