Georgia Public Service Commission approves Georgia Power’s amended 2022 rate request

Georgia Power today received approval from the Georgia Public Service Commission (PSC) on its rate request that will help enable the company to continue making investments in strengthening and further securing the electric grid while balancing affordability needs for customers.

“Since the start of the rate request process, we asked the PSC to set rates at a level that supports the essential, critical investments needed to meet our state’s evolving energy needs,” said Chris Womack, chairman, president and CEO, Georgia Power. “Today’s decision does that while also balancing affordability needs for customers. Through this process, we were able to bring forth a plan that considered all perspectives, manages the impact to customers and supports our continued focus on providing clean, safe, reliable and affordable energy to Georgians.”

As approved, effective January 1, 2023, the typical residential customer using 1,000 kilowatt-hours per month would see a bill increase of approximately $3.60 per month. The first-year rate impact on the average retail customer is 2.6% followed by increases of approximately 4.5% in each of the next two years.

The Commission’s decision also approves several changes to the company’s rate request that were presented as part of a stipulated agreement between the company, PSC staff and a group of intervenors that reduced the company’s three-year rate request by nearly 40% down to $1.8 billion. 

This supports critical investments in:

• Strengthening the electric grid - Making the grid safer, more reliable and more secure to improve service and reduce outages through transmission and distribution infrastructure investments including enhancing substations, replacing transformers, moving power lines underground and more. These investments improve reliability, reduce both the number and duration of outages, minimize repair time and contribute to a better customer experience.
• Transforming how we make energy - Utilizing cleaner and more economical ways to generate power to help keep customer rates affordable - transitioning our generation resources and continuing to serve customers with a diverse and balanced portfolio of generation resources, which include additional cost-effective renewable sources.
• Investing in renewables and cleaner energy resources - Deploying new and expanded resources in solar, hydro and energy storage to continue reducing carbon emissions - with plans to double our renewable generation resources by adding 6,000 MW by 2035. 
• Enhancing operations and improving the customer experience - Investing in technology to enhance our customers’ experience, including investments in a new Customer Information System that enables customer service employees to quickly access customer information and provide more comprehensive and timely solutions; preparing for an integrated software resource platform that offers real-time visibility into the impact of distributed energy resources on the electric system; and investments in the infrastructure and technology needed to support the continued growth of electric transportation in Georgia.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained herein is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the 2022 Alternative Rate Plan, including expected impacts to customer rates, projected renewable generation and future capital expenditures. Georgia Power cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Georgia Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Georgia Power’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent securities filings could cause actual results to differ materially from management expectations as suggested by such forward-looking information: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms and the 2022 Alternative Rate Plan; the impact of recent and future federal and state regulatory changes, including tax, environmental, and other laws and regulations to which Georgia Power is subject, as well as changes in application of existing laws and regulations; the extent and timing of costs and legal requirements related to coal combustion residuals; current and future litigation or regulatory investigations, proceedings or inquiries; the effects, extent and timing of the entry of additional competition in the markets in which Georgia Power operates, including from the development and deployment of alternative energy sources; variations in demand for electricity; available sources and costs of fuels; effects of inflation; the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of facilities, to construct facilities in accordance with the requirements of permits and licenses (including satisfaction of Nuclear Regulatory Commission requirements), to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; investment performance of the employee and retiree benefit plans and the nuclear decommissioning trust funds; advances in technology, including the pace and extent of development of low- to no-carbon energy technologies and negative carbon concepts; the ability to successfully operate Georgia Power’s generating, transmission and distribution facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating and constructing nuclear generating facilities; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the direct or indirect effect on Georgia Power’s business resulting from cyber intrusion or physical attacks and the threat of physical attacks; interest rate fluctuations and financial market conditions and the results of financing efforts; access to capital markets and other financing sources; changes in Georgia Power’s credit ratings; the ability of Georgia Power to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars, or other similar occurrences; the direct or indirect effects on Georgia Power’s business resulting from incidents affecting the U.S. electric grid or operation of generating resources; and the effect of accounting pronouncements issued periodically by standard setting bodies. Georgia Power expressly disclaims any obligation to update any forward-looking information.