State energy regulators authorized Georgia Power Wednesday to reduce customer rates by $122 million, reflecting the Atlanta-based utility's savings from corporate tax cuts the General Assembly enacted this year.
Gov. Brian Kemp signed two bills last spring reducing Georgia's income tax rate from 5.49% to 5.39% and setting corporate income taxes to match the tax rate imposed on individual taxpayers.
The state Public Service Commission required Georgia Power in the company's 2022 rate case to pass any savings from future tax cuts to customers.
“Recent rate increases and increases in fuel cost have put a strain on Georgia Power customers,” said Commissioner Fitz Johnson, who motioned to pass on the savings from lower taxes to ratepayers. “I want to ensure that savings we know will come as soon as possible. I thank my fellow commissioners for joining me in approving this rate relief.”
'We applaud members of the Georgia legislature and Governor Kemp for revising the state’s tax code, and the members of the Georgia PSC for working with us to quickly return these funds for the benefit of customers,' added Kim Greene, Georgia Power's president, chairman, and CEO.
The rate reduction will save Georgia Power's average residential customer an estimated $2.25 a month. The new rates will take effect Jan. 1.