On Feb. 17, Georgia Power filed its expected Fuel Cost Recovery and Storm Cost Recovery cases with the Georgia Public Service Commission (PSC).
Together, the cases seek to lower costs for customers through two distinct filings. The first filing requests to recover the cost of fuel — including coal and natural gas — to operate power generation plants to serve customers, and the second filing requests to recover costs to restore electric service following storms of all sizes quickly and safely — from devastating hurricanes like Hurricane Helene to pop-up thunderstorms.
The company said the cumulative effect of the filings will result in lower overall rates for customers beginning this summer, if approved by the Georgia PSC.
“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 CFO and Treasurer Tyler Cook said.
GP said that, as it adds more natural gas generation, alongside other sources, to meet its customers' demand, it is working to protect customers from future fuel price volatility by locking in supply and pricing through a strategic planning process known as “hedging.” Fuel charges are treated as pass-through costs for the company, with Georgia Power earning no profit on fuel costs.
Costs to repair weather-related damage and restore electricity are recovered through regular proceedings at the Georgia PSC, with the company managing a fluctuating reserve for storm costs.
According to its filing, the company’s storm reserve is under-recovered by $912 million, which it proposes to recover over the next four years. This includes nearly $800 million in damage in 2024 from Hurricane Helene, the most destructive storm in the company’s history, with 12,200-plus power poles, 1,500-plus miles of power lines, and nearly 5,000 transformers damaged or destroyed.
Still, despite historic damage, GP restored power quickly to millions of customers in the days following the storm, earning national recognition for its response as among the best in the industry.