Georgia PSC approves lower Georgia Power rates, saving customers about $4 a month

ATLANTA, Ga. (Atlanta News First) — The Georgia Public Service Commission (PSC) has approved lower rates for Georgia Power customers.

The new rates, which take effect in June, are expected to save the typical residential customer about $50 a year — roughly $4 a month — based on average usage of 1,000 kilowatt-hours per month, according to Georgia Power.

In total, customers are projected to save $285 million annually.

“Today’s vote by the Georgia PSC will bring lower rates and real savings for Georgia families and businesses as the heat of summer begins and energy use increases, which can lead to higher bills,” said Tyler Cook, Georgia Power CFO and treasurer. “At Georgia Power, our teams work every day to run our business efficiently and keep reliable and affordable energy flowing to our customers. We appreciate today’s approval by the Georgia PSC of this plan, following months of hard work by our teams and Georgia PSC staff, robust review and open hearings, as well as engagement by members of the public and intervenors.”

In 2025, the commission froze base rates for three years.

Public Service Commission member Peter Hubbard, a Democrat, said the reduction follows multiple recent rate increases and warned the deal does not resolve broader questions about who should cover storm damage and volatile fuel costs.

“We had six rate increases, and this is the first time it’s going in the other direction, by $4 a month,” Hubbard said.

A major part of the agreement involves storm damage recovery, including costs tied to Hurricane Helene. The commission extended the repayment period to 67 months and reduced Georgia Power’s revenue requirement from $270 million to $109 million.

Hubbard said he proposed four changes to the agreement but did not receive enough support from fellow commissioners.

“I put forward four motions … I couldn’t find the votes beyond my Democratic colleague,” he said.

Attorney Steven J. Hewitson, external counsel for Georgia Power, defended the agreement as a negotiated compromise, saying changes could undermine the deal.

“Any modification to the agreement changes the balance and can upset the bargain,” Hewitson said.

Fuel costs also remained a point of contention. Hubbard and others cited fluctuations in natural gas prices and the rapid expansion of Georgia’s power grid, driven in part by data centers.

The commission said Georgia Power agreed to cut $13 million from its fuel estimates, cap hedging, and schedule a separate hearing on how real-time pricing revenue is credited — a proceeding expected by December.

Georgia Power said the follow-up case will allow broader participation and scrutiny.

“An open and transparent process through the RTP follow-on proceeding includes all interested parties,” Hewitson said.

What’s next: The commission’s real-time pricing and fuel allocation hearing is expected by December, and Hubbard said upcoming PSC elections could influence how aggressively regulators address future storm and fuel cost recovery.