Georgia Power executives and state regulators defended the utility's proposed three-year rate freeze Thursday during a contentious hearing, one day before the Public Service Commission is scheduled to vote on the agreement that critics say will ultimately cost customers more money.
The hearing marked the latest flashpoint in a battle over Georgia Power's plan to cancel a scheduled rate case and freeze base rates through 2028, an agreement that has drawn support from Gov. Brian Kemp but fierce opposition from consumer advocacy and environmental groups.
Critics focused their attacks on provisions that would allow Georgia Power to recover about $860 million in Hurricane Helene cleanup costs, arguing the exemption makes the "freeze" misleading12.
"The rate freeze isn't a rate freeze," Patty Durand, founder of Georgians for Affordable Energy, told commissioners Thursday. "It freezes rates but does not freeze spending"2.
The Southern Environmental Law Center and other groups argue the agreement locks in Georgia Power's 11.9% return on equity—well above the 9.57% industry average—while deferring scrutiny of billions in new capital expenditures until 20283. They estimate the high profit margin alone generates $500-740 million in excess annual profits3.
Steven Ruetger, an analyst with the PSC's Public Interest Advocacy Staff, defended the storm cost recovery, saying Hurricane Helene was "so tremendously damaging" that delays would harm the company's financial stability2.
The hearing occurred amid allegations that three PSC commissioners violated state rules by publicly endorsing the freeze before formal proceedings began12. Advocacy groups filed a complaint asking Chairman Jason Shaw, Commissioner Tim Echols and Commissioner Lauren "Bubba" McDonald to recuse themselves from the July 1 vote12.
The complaint centers on Shaw's May 21 appearance with Kemp at a press conference where he called the freeze "a very big deal for our state," and Echols' public statement that "freezing the rates for three years is the best thing we can do for ratepayers"12. All three commissioners declined to recuse themselves Thursday3.
The freeze proposal comes after Georgia Power customers endured six rate increases since 2023, pushing average monthly bills up by about $4312. Georgia Power Chief Financial Officer Aaron Abramovitz testified the company faced a revenue shortfall and would likely have requested another rate increase if the traditional rate case proceeded3.
Tom Bond, the PSC's director of utilities, called the agreement "a good, safe bet for ratepayers to keep rates where they are for the next three years"3.
