12% increase approved for Georgia Power starting in June

ATLANTA - Electricity bills for Georgia Power customers will rise 12% beginning in June after Georgia’s elected utility regulators on Tuesday approved the boost to make up for the higher cost of fuel.

The five Republican commissioners voted unanimously to let Georgia Power collect an additional $6.6 billion from its 2.7 million customers over the next three years.

A typical residential bill will rise to $147.50 a month, up $15.90 from the current $131.60.

Commissioners adopted an agreement that regulatory staff members and the unit of Atlanta-based Southern Co. reached last month. It’s one of at least three increases Georgia Power customers are likely to see this year.

Georgia Power spokesman John Kraft says the utility is raising prices because its costs are going up. 

"This is simply recovering those costs for fuels that have gone up extensively," Kraft said. "Just as Georgians saw higher prices at the gas pump, Georgia Power experienced higher prices in the fuels we use to generate electricity, in particular natural gas." 

A utility is typically allowed to charge for fuel costs, but is not allowed to make a profit on it. But because of rising fuel costs during the two-year period now ending, Georgia Power says it will end the period roughly $4.5 billion in the hole, even though commissioners approved a 15% cost boost that began in January 2022.

Most of the proposed rate increase will make up for that deficit, repaying the company over three years instead of the normal two because the debt is so large.

"We owe the bill and we’ve got to pay it," said Commissioner Lauren "Bubba" McDonald Jr.

Georgia Power forecasts that it also needs another $2.2 billion to pay higher fuel prices going forward.

Commissioners rejected proposals to stretch our the recovery of the $4.5 billion in fuel debt over four or five years.

Commission Chairman Tricia Pridemore said customers would still be paying current fuel debt after commissioners set new Georgia Power fuel rates in 2026 under a longer plan, like carrying a credit card balance.

Georgia Power 

"We would have financed this again," Pridemore said.

Environmentalists argued commissioners should force Georgia Power to bear some rising fuel costs because it has shifted its generation portfolio to depend on natural gas. They say it’s unfair for the company to make big profits while ratepayers suffer.

Charline Whyte, senior representative for the Sierra Club’s the Beyond Coal Campaign, says the prince increases are too big a burden on customers. 

"It hits people hard every day," Whyte said. "It hurts customers every time they have to pay a bill. They have to choose between the lights and the food or the lights and the medicine." 

Bill increases are stacking up for Georgia Power customers. Rates went up 2.5% last month in January after commissioners approved a three-year rate plan in December. Increases of 4.5% will follow in 2024 and 2025. Customers will also have to pay the costs of the third and fourth nuclear units at Plant Vogtle near Augusta. Residential customers will likely be paying $4 a month more when Unit 3 begins operation by June. A larger rate increase is likely to follow when Unit 4 begins operation by 2024.

Customers like Porche Lovett say it already costs too much to live in Atlanta, especially with inflation and flat wages.  

"I think it’s a bad move," Lovett said. "we’re not even getting paid enough right now.  The cost of living is high as hell."  

Commissioners agreed Tuesday to let Georgia Power raise or lower fuel charges by up to 40% between fuel-cost rate cases.

Commissioners also voted to raise fuel cost discounts for low-income senior citizens from $6 a month to $9.50 a month.

The Associated Press contributed to this report.