Georgia’s electric bills will go up in January: Here’s what you need to know

On December 29, 2024By Littum

Ifollowing a unanimous decision by the Georgia Public Service Commission, Georgia Power customers are set to experience a significant rate increase beginning in January 2025.

The approved increase would allow the utility to collect an additional $306 million from its taxpayers annually, a move that has drawn mixed reactions across the state.

How much more would you pay?

For the average residential customer, this increase translates to a 3.5% increase in monthly bills, or approximately $5.84 more. This adjustment marks the sixth rate increase since early 2023, cumulatively raising the average customer’s bill by about $43 over the past two years.

The economic impact on consumers is a growing concern, especially as inflationary pressures and economic challenges continue. “We recognize that any increase can be difficult for families, but these changes are necessary to maintain and improve our state’s electric infrastructure,” a Georgia Power spokesperson said.

Reasons behind the hike

The rate increases are driven by several key factors:

Network improvements: Georgia Power is investing heavily in modernizing its grid to improve reliability and resiliency, especially in the face of increasingly frequent and severe weather events.
Cleaner energy initiatives: As part of its commitment to reduce carbon emissions, the utility is expanding its renewable energy portfolio, which includes solar and wind projects. These efforts aim to transition the state to a cleaner and more sustainable energy future.
Customer Service Improvements: Funds from the rate hike will also go toward improving customer service technologies, including improved billing systems and support services.

Storm Recovery costs looming

Further interest rate adjustments may be on the horizon. Georgia Power has indicated that it will address the recovery of costs from recent natural disasters, such as Hurricane Helene, in its next three-year rate plan. The storm caused significant damage to the state’s electrical infrastructure, and the company plans to apply for additional collections next summer.

Public reaction

While some see the investments as a necessary step towards a more reliable and sustainable energy system, others express concern about the financial burden on consumers. “With six rate hikes in two years, it’s becoming increasingly difficult for families to manage their monthly expenses,” said one Atlanta resident.

Members of the Georgia Public Service Commission acknowledged the concerns but emphasized the long-term benefits of the investments. “Our priority is to ensure Georgia has a reliable and modern energy grid. These upgrades are essential, but we will continue to monitor the financial impact on consumers,” a commissioner said.

What’s next?

The approved rate increase is just one step in Georgia Power’s ongoing strategy to upgrade and expand its services. Customers are encouraged to explore energy-saving programs and initiatives offered by the company to mitigate the impact of higher bills.

For additional information, visit Georgia Power’s official website or contact the Georgia Public Service Commission.

Conclusion

As January approaches, Georgia Power customers should prepare for higher electric bills. While the rate hike supports critical infrastructure improvements and cleaner energy goals, it underscores the delicate balance between advanced energy systems and managing consumer costs. The coming months will reveal how effectively these changes address the state’s growing energy needs while keeping affordability in check.