(The Center Square) – The Georgia Public Service Commission agreed to a three-year rate freeze for Georgia Power on Tuesday in an agreement that allows the utility to come back before the commission to discuss storm relief costs.
The agreement announced in May allows Georgia Power to have a maximum 11.9% return on equity. Commissioner Lauren “Bubba” McDonald made a motion that would have reduced it to 11.5%. His motion failed.
Commissioner Tim Echols said the rate freeze is a step in the right direction.
“When you pay more eggs, all you get is eggs,” Echols said. “When you pay more for power, if you’re doing it right, the way that we’ve done it, you get a bigger economy with more prosperity and opportunity for the residents and the businesses of our state.”
The rate freeze was opposed by several who spoke at a hearing last week.
Patty Durand, founder of the group Georgians for Affordable Energy and a former candidate for the Public Service Commission, said the agreement freezes rates but does not freeze spending.
“This is not a rate freeze because Hurricane Helene costs will raise rates, resource procurement will raise rate, fossil fuel surcharges will raise rates, but ignoring all that the rate freeze hides the cost of massive fossil fuel expansion underway for three years,” Durand said Thursday at a hearing on the freeze.
Georgia Power serves 2.8 million customers in the state.
“The rate freeze resulting from this plan is a great result for customers, balancing the mutual benefits of extraordinary economic growth among all stakeholders and helping to ensure that we remain equipped to continue supporting growth in this state,” said Kim Greene, chairman, president and CEO of Georgia Power. “A plan like this is only possible due to the strength of Georgia’s constructive regulatory environment, and we thank the Georgia Public Service Commission for their vote today.”
