Georgia Power Files Fuel and Storm Cost Recovery Cases, Projects Net Rate Decrease for Customers
Georgia Power has submitted two major regulatory filings to the Georgia Public Service Commission (PSC) that together are expected to lower overall electricity costs for customers beginning this summer, if approved. The filings—one addressing fuel cost recovery and the other storm cost recovery—are part of the company’s ongoing effort to manage operational expenses while maintaining reliable service for millions of customers across the state.
The company filed its Fuel Cost Recovery case (Docket 56765) and its Storm Cost Recovery case (Docket 44280) on the same day. Although each case addresses a different set of expenses, Georgia Power said the combined effect of the filings would result in an overall rate decrease for customers, even as the company works to recover significant storm-related costs and maintain reliable generation resources.
Two Distinct Filings with a Combined Impact
The first filing focuses on fuel cost recovery. This case addresses the cost of fuel used to operate the company’s power plants, including coal and natural gas. Fuel costs are a major component of electricity production, and Georgia Power periodically adjusts these charges to reflect actual expenses. Importantly, the company does not earn a profit on fuel costs; they are treated as a pass-through expense that customers pay based on the actual cost of generating electricity.
The second filing relates to storm cost recovery. This case seeks approval to recover expenses incurred during the restoration of electric service following severe weather events. These events can range from routine thunderstorms to major hurricanes that cause widespread damage to the power grid.
Georgia Power explained that while the storm cost recovery case involves significant expenses, the expected reduction in fuel costs is projected to more than offset those charges. As a result, the company estimates a net decrease of approximately 1 percent in overall rates for the average retail customer. For a typical residential customer using about 1,000 kilowatt-hours per month, this would translate to an estimated monthly savings of about $1.32.
Fuel Savings Driven by Generation Mix and Strategic Planning
The company attributed the projected fuel savings to the strength of its diverse generation portfolio and its long-term fuel planning strategies. Georgia Power’s generation mix includes nuclear, coal, natural gas, and renewable resources such as solar, hydroelectric, and wind. By balancing these resources and carefully planning fuel procurement, the company said it has been able to reduce its overall fuel costs.
Beginning in June, the fuel portion of customer bills is expected to decrease significantly as a result of these efforts. Georgia Power noted that it has taken steps to secure fuel supplies at stable prices, particularly for natural gas, which plays an increasing role in meeting electricity demand.
As Georgia continues to grow rapidly, the company is adding additional natural gas generation capacity alongside other energy sources. To protect customers from future fuel price volatility, Georgia Power is employing a strategy known as “hedging,” which involves locking in fuel supplies and prices in advance. This approach is designed to reduce exposure to market fluctuations and provide more predictable electricity costs for customers over time.
Tyler Cook, chief financial officer and treasurer for Georgia Power, emphasized the importance of careful planning and operational efficiency in maintaining affordable electricity rates.
“Delivering reliable and affordable electricity to millions of Georgia homes and businesses requires prudent management and planning at every level, every day,” Cook said. “While electricity rates are climbing in other parts of the country and demand growth is placing increasing pressure on power systems nationwide, we’re working with the Georgia PSC to manage growth wisely, optimizing all areas of our business to allow us to provide savings to our customers.”
Storm Recovery Costs Reflect Severe Weather Impacts
While the fuel filing focuses on reducing costs, the storm cost recovery case addresses a significant shortfall in the company’s storm reserve fund. According to the filing, the reserve is currently under-recovered by approximately $912 million.
Georgia Power is proposing to recover this amount over the next four years. A large portion of the shortfall stems from damage caused by Hurricane Helene in 2024, which the company described as the most destructive storm in its history. The hurricane caused extensive damage across the service territory, including the destruction or severe damage of more than 12,200 power poles, over 1,500 miles of power lines, and nearly 5,000 transformers.
Despite the scale of the damage, Georgia Power said it was able to restore service to millions of customers within days. The company received national recognition for its storm response efforts, which it said were among the best in the industry.
Storm restoration costs are typically recovered through regulatory proceedings, with utilities maintaining a reserve fund to handle such events. Because storm damage can vary widely from year to year, the reserve balance can fluctuate significantly. When the reserve is depleted by major storms, utilities seek approval from regulators to replenish it over time.
Regulatory Review Process
Both filings will now be reviewed by the Georgia PSC through its established regulatory process. This review includes input from various stakeholders, including consumer advocates and other intervenors, who examine the proposed costs and rate adjustments.
The commission will evaluate the filings in the coming months before issuing a final decision. If approved as proposed, the company expects the fuel savings to outweigh the storm cost recovery charges, resulting in the projected rate decrease for customers.
Long-Term Focus on Affordability
Georgia Power emphasized that the current filings are part of a broader, long-term effort to maintain affordable electricity rates while investing in infrastructure and meeting growing demand.
The company noted that it has provided electricity rates that average about 15 percent below the national average since 1990. Over the years, it has also introduced a variety of rate plans and energy-saving programs aimed at helping both residential and business customers manage their electricity costs.
In recent years, Georgia Power has worked closely with the PSC to develop plans that address the needs of a rapidly growing population and expanding economy. These plans include investments in grid reliability and new generation capacity, as well as measures designed to stabilize rates.
One of the key outcomes of these efforts is a freeze on base rates through at least 2028. The company also expects to deliver annual savings of approximately $102 for the typical residential customer following its next base rate case in 2028.
Georgia Power said these measures are part of its strategy to balance growth, infrastructure investment, and affordability. By planning ahead and coordinating closely with regulators, the company aims to minimize rate volatility while ensuring reliable service.
Serving Millions of Customers Across the State
Georgia Power is the largest electric subsidiary of Southern Company and serves approximately 2.8 million customers across most of the state’s 159 counties. The company’s operations are built around four core principles: value, reliability, customer service, and stewardship.
Its generation portfolio is designed to provide a stable and reliable supply of electricity. In addition to fossil-fuel and nuclear plants, the company continues to expand its renewable energy resources, including solar, hydroelectric, and wind generation.
Georgia Power has also received recognition from J.D. Power for customer satisfaction, reflecting its focus on service quality and reliability.
