Georgia Power’s customers are set to face another rate hike starting January 1, 2025, bringing an average increase of $43 per month since the beginning of 2023. This follows several previous rate hikes aimed at covering various costs, including the construction of new nuclear power generators and upgrades to the utility’s aging infrastructure.
The utility’s rates have been steadily rising, with this most recent increase continuing the trend of higher energy costs for Georgia households. The Georgia Public Service Commission (PSC) has approved a 3.5% rate hike, which will increase the average household’s electricity bill by $5.48. This decision was finalized after a series of hearings and discussions, with all five commissioners, who are Republicans, giving their unanimous support for the hike.
A Series of Rate Hikes in 2023 and 2024
For many Georgians, energy bills have become increasingly burdensome. Since 2023, Georgia Power customers have experienced a significant jump in their monthly bills. The combination of base rate increases, the need to recover excess fuel expenses, and the costs associated with completing two nuclear generators at Plant Vogtle has led to the growing financial strain. The upcoming 3.5% rate increase is part of a broader strategy to fund infrastructure improvements and meet energy demands in the state.
The rate hikes started in early 2023, with Georgia Power implementing increases in several phases throughout the year. These hikes were part of a broader effort to balance the utility’s growing costs with its financial obligations. Now, as we move into 2025, customers can expect an additional burden of roughly $43 on their electricity bills.
In the face of these rising costs, many residents are feeling the pinch. As energy costs climb, there has been mounting concern about the growing financial hardship faced by families across the state. With inflation continuing to affect household budgets, energy price hikes only add to the pressure, leading some to question whether these increases are truly necessary.
The 3.5% Rate Hike: What It Means for Georgians
This upcoming rate hike, set for January 1, 2025, will cost customers an additional $5.48 per month. While the figure might seem small, the cumulative impact of several rate increases over the past two years is significant. Georgia Power estimates that this hike will bring in $306 million, which will be used to fund infrastructure projects and the addition of new energy sources to meet the state’s growing energy needs.
Interestingly, the $306 million that Georgia Power is set to recover is actually $97 million less than originally projected. The company adjusted its forecasts after seeing faster-than-expected growth in its industrial customer base, meaning the anticipated revenue from the rate hike was reduced. This adjustment comes as the utility works to meet the surging demand for electricity driven in part by the rapid expansion of data centers supporting the artificial intelligence (AI) industry.
The need for additional energy resources has become even more pressing due to this industry’s massive energy demands. To meet these needs, Georgia Power has been increasing its investment in fossil fuel energy sources, which are now expected to be a significant part of the company’s energy portfolio. The growing AI industry has led to a boom in data center development, which has in turn pushed Georgia Power to upgrade its grid and expand its energy capacity.
Political Pushback and Growing Concerns
The approval of the rate hike did not come without some political opposition. Commissioner Lauren “Bubba” McDonald, who serves on the Georgia Public Service Commission, expressed concern over the timing of the rate increase. In a recent meeting, McDonald called for the hike to be delayed until later in 2025, citing the financial hardship it could cause for many Georgians already struggling with high costs.
McDonald also suggested that the delay could provide better insight into how the country’s energy policy might shift under the leadership of President-elect Donald Trump. This would offer a clearer picture of the political landscape and how that might influence Georgia’s energy policies moving forward.
In addition to his concerns over the timing of the increase, McDonald pointed to Georgia Power’s financial health. He noted that Southern Company, the parent company of Georgia Power, had reported earnings of $1.5 billion in the third quarter of 2024. Given this substantial profit, McDonald questioned whether ratepayers should be bearing the brunt of the company’s investment decisions.
“We need to do everything that we can to hold down rate increases, whether it’s gas, electricity, automobile fuel or whatever and give America a chance to breathe again,” McDonald remarked during the PSC meeting.
Looking Ahead: What’s Next for Georgia Power?
While the upcoming rate hike may bring much-needed funds for Georgia Power to continue its infrastructure upgrades, it has also sparked a broader conversation about the affordability of energy in the state. As more data centers and industrial customers drive up demand, Georgia Power will need to balance its investments in new energy resources with the financial realities faced by its residential customers.
At the same time, the push to transition to cleaner energy sources remains a long-term challenge for the utility. As the state continues to grow, Georgia Power will need to address both its carbon footprint and its capacity to meet the demands of an increasingly tech-driven economy. However, balancing these priorities with the needs of everyday Georgians remains a delicate task.
With Georgia’s energy future uncertain, the decision to approve yet another rate hike underscores the ongoing tension between providing affordable energy to residents and ensuring that the utility can meet the growing demand for power in the state.
