Georgia Power has submitted two filings to the Georgia Public Service Commission (PSC) aimed at reducing customer costs. The filings include the Fuel Cost Recovery and Storm Cost Recovery cases, which together are expected to lower electricity rates for customers starting this summer if approved by the PSC.
The Fuel Cost Recovery filing seeks approval to recover expenses related to fuel such as coal and natural gas used in power generation. The Storm Cost Recovery filing addresses costs incurred from restoring electric service after severe weather events, including major hurricanes and smaller storms.
Tyler Cook, CFO and treasurer for Georgia Power, stated: “Delivering reliable and affordable electricity to millions of Georgia homes and businesses requires prudent management and planning at every level, every day. 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.”
Georgia Power attributes its ability to reduce fuel rates starting in June to its diverse generation mix and strategic fuel planning. By adding more natural gas generation and employing hedging strategies—locking in supply and prices—the company aims to protect customers from future fluctuations in fuel prices. The company notes that it does not profit from fuel charges as these are passed through directly to customers.
Storm recovery costs are managed through a reserve fund overseen by regular PSC proceedings. Currently, Georgia Power’s storm reserve is under-recovered by $912 million. The company proposes recovering this amount over four years, with nearly $800 million stemming from damage caused by Hurricane Helene in 2024—the most damaging storm in company history—which resulted in extensive infrastructure losses but saw quick restoration efforts recognized nationally.
The PSC will review these filings over the coming months with input from various stakeholders. If approved, projected fuel savings will more than offset storm-related costs, resulting in a 1 percent rate decrease for average retail customers—about $1.32 less per month for typical residential users consuming 1,000 kWh monthly.
Georgia Power has emphasized affordability throughout its history. Since 1990, its rates have averaged 15 percent below the national average while offering flexible plans for both residential and business clients along with programs designed for energy savings.
In recent years, collaboration between Georgia Power and the PSC has focused on accommodating state growth while maintaining stable rates. This approach includes a freeze on base rates until at least 2028 and plans for annual savings of about $102 per year for typical residential customers following their next base rate case that year.
More information about Georgia Power’s initiatives can be found at www.GeorgiaPower.com.
