Georgia Power’s Proposal: What Higher Bills and Grid Expansion Mean for You

If you’ve noticed your electricity bill creeping up over the years, you’re not alone. Georgia Power’s latest proposal—filed with state regulators in early 2024—could push rates even higher as the company seeks approval for a $1.1 billion grid expansion. The plan promises modernized infrastructure, improved reliability, and support for renewable energy, but critics argue it may place an unfair burden on consumers already grappling with inflation. So, what’s really behind this proposal, and how could it impact your wallet—and your power supply?

In this breakdown, we’ll explore the key details of Georgia Power’s proposal, why the company says the upgrades are necessary, how much bills could rise, and what alternatives (or pushback) might shape the outcome. Whether you’re a homeowner, business owner, or just a curious ratepayer, understanding this issue could help you prepare—or even voice your opinion before regulators make a decision.

What Is Georgia Power Proposing?

Georgia Power, a subsidiary of Southern Company, has submitted a multi-year plan to the Georgia Public Service Commission (PSC) that includes:

• Grid modernization: Upgrading transmission lines, substations, and smart meters to reduce outages and support renewable energy integration.
• Rate increases: A phased 12% cumulative rise in residential bills by 2026, with commercial and industrial customers seeing varying hikes.
• Renewable energy investments: Expanding solar and battery storage capacity, partly to meet state mandates and corporate sustainability goals.
• Coal plant retirements: Phasing out older, less efficient units while extending the life of others (like Plant Bowen) to ensure grid stability.

The company frames these changes as essential for reliability, resilience, and compliance with Georgia’s energy laws, including the 2021 Georgia Energy Act. But consumer advocates and environmental groups are raising red flags about cost transparency, alternative solutions, and the pace of clean energy adoption.

Why Now? The Drivers Behind the Proposal

Several factors are converging to make this proposal a priority for Georgia Power:

1. Aging infrastructure: Much of Georgia’s grid was built in the mid-20th century and is increasingly vulnerable to storms and cyber threats.
2. Population growth: Georgia’s booming economy (fueled by industries like film, tech, and manufacturing) is straining power demand, especially in metro Atlanta.
3. Federal and state mandates: The Inflation Reduction Act (IRA) offers incentives for clean energy, while Georgia’s own laws require utilities to add more renewables.
4. Extreme weather risks: Hurricanes, ice storms, and heatwaves have exposed weaknesses in the grid, leading to prolonged outages (e.g., 2022’s Hurricane Ian aftermath).

Georgia Power argues that proactive upgrades will save money in the long run by avoiding costly emergency repairs. However, critics counter that the company’s profit motives—Southern Company reported $3.2 billion in profits in 2023—may be inflating the need for rate hikes.

How Much Will Your Bill Increase?

The proposal outlines a three-year rate plan, with the following estimated impacts for residential customers:

Year	Average Monthly Increase	Cumulative Increase
2025	$8–$12	~4%
2026	$12–$18	~8%
2027	$15–$22	~12%

Source: Georgia Power’s 2024 Integrated Resource Plan (IRP) filing. Actual impacts may vary by usage and customer class.

For context, the average Georgian household currently pays about $140/month for electricity. A 12% increase would add roughly $170–$200 aually to that bill. Businesses, especially energy-intensive manufacturers, could see even steeper costs.

Who Will Be Hit Hardest?

The rate hikes won’t affect everyone equally. Key groups to watch:

• Low-income households: Programs like Georgia Power’s Senior Citizen Discount may offset some costs, but advocates say more support is needed.
• Rural customers: Areas with older infrastructure may see higher surcharges for upgrades, despite lower overall usage.
• EV owners: While Georgia Power offers special EV rates, the base cost increase could dampen savings from charging at home.
• Small businesses: Restaurants, retail stores, and farms often operate on tight margins; energy costs are a top expense.

Related: Jump to alternatives that could reduce your bill.

The Controversy: Is This Expansioecessary?

Georgia Power’s proposal has sparked debate among regulators, environmentalists, and consumer groups. Here are the core arguments on both sides:

Supporters Say: “It’s a Smart Investment”

Proponents, including Georgia Power and some business lobbies, argue that:

• Reliability improves economic growth: Fewer outages mean less lost productivity for factories, hospitals, and data centers.
• Renewables need grid upgrades: Solar and wind require modern infrastructure to handle intermittent supply.
• Federal funds can offset costs: The IRA and other grants could cover up to 30% of project expenses, reducing the burden on ratepayers.
• Delays could cost more later: Waiting risks catastrophic failures (e.g., Texas’s 2021 grid collapse) that would require even pricier fixes.

Critics Counter: “There’s a Better Way”

Opponents, including the Georgia Watch consumer advocacy group and the Sierra Club, raise these concerns:

• Lack of competitive bidding: Georgia Power’s parent company, Southern Company, often awards contracts to its own subsidiaries, potentially inflating costs.
• Over-reliance on gas and coal: While the plan includes renewables, it also extends the life of fossil fuel plants, locking in emissions for decades.
• Weak energy efficiency programs: Georgia ranks 40th nationally in efficiency policies, missing opportunities to cut demand (and bills) through insulation, LED upgrades, etc.
• Profit guarantees for shareholders: Georgia Power is guaranteed a 10.5% return on equity—higher than many peer utilities—which critics say incentivizes overspending.

Expert Insight: “Utilities often overestimate demand to justify building more infrastructure,” says John Farrell, director of the Institute for Local Self-Reliance. “Georgia could save ratepayers money by prioritizing distributed energy (like rooftop solar) and demand response programs instead.”

What Are the Alternatives?

If you’re concerned about rising bills, you’re not powerless (pun intended). Here are ways to reduce costs, push back, or explore options:

1. Cut Your Energy Use

Simple upgrades can trim 10–30% off your bill:

• Smart thermostats: Devices like Google Nest or Ecobee optimize heating/cooling schedules.
• LED lighting: Swapping bulbs can save $75/year for the average home.
• Energy audits: Georgia Power offers free audits to identify waste.
• Time-of-use rates: Shift usage to off-peak hours (e.g., ruing dishwashers after 9 PM) to avoid higher charges.

2. Go Solar (Even Without Rooftop Panels)

Georgia’s solar potential is vast, but policies have lagged. Options to consider:

• Rooftop solar: Despite modest incentives, panels can pay for themselves in 8–12 years. Companies like SolarCity and SunPower operate in Georgia.
• Community solar: Programs like Georgia Solar let you subscribe to a shared solar farm, reducing bills without installation.
• Net metering: Georgia Power’s current policy pays minimal credits for excess solar, but advocacy groups are pushing for reforms.

3. Voice Your Opinion

The Georgia PSC will hold public hearings on the proposal in fall 2024. Here’s how to engage:

1. Submit comments: Email the PSC at [email protected] or use their online form.
2. Attend hearings: Check the PSC calendar for dates/locations.
3. Join advocacy groups: Organizations like Georgia Watch and Vote Solar provide templates for public comments.

4. Explore Competitive Suppliers (If Available)

Georgia’s limited energy choice means most customers can’t switch providers. However:

• Large industrial users caegotiate rates directly with Georgia Power.
• Municipal utilities (e.g., MEAG Power) or electric cooperatives (like Jackson EMC) may offer lower rates in some areas.
• Legislative efforts (e.g., HB 150) could expand competition in the future.

What’s Next? Timeline and Key Decisions

The PSC’s review process will unfold over the next 12–18 months. Here’s what to watch for:

2024: Public Input and Hearings

• June–August: Georgia Power files detailed cost justifications.
• September–November: PSC holds public hearings across the state.
• December: Independent auditors release reports on the proposal’s fairness.

2025: PSC Vote and Potential Adjustments

• Q1 2025: PSC commissioners vote on whether to approve, reject, or modify the plan.
• Mid-2025: If approved, first rate increases take effect (likely ~4%).
• Late 2025: Georgia Power begins major grid projects, with timelines varying by region.

2026–2027: Implementation and Ongoing Debates

• Additional rate hikes roll out in phases.
• Environmental groups may challenge the plan in court if they deem it non-compliant with state/federal laws.
• Legislators could introduce bills to accelerate renewables or expand consumer choice.

Pro Tip: Sign up for alerts from the PSC or groups like Georgia Watch to stay updated on hearing dates and decisions.

Bottom Line: Should You Be Worried?

The short answer? Yes, but not helpless. Georgia Power’s proposal will likely lead to higher bills, but the extent depends on:

• Whether the PSC scales back the rate increases (as they did in 2022).
• How aggressively you reduce usage or adopt solar.
• Whether Georgia accelerates energy efficiency programs or expands competition.

For now, the best steps are to:

1. Audit your energy use and cut waste where possible.
2. Explore solar or community renewable programs.
3. Make your voice heard with the PSC before decisions are finalized.

While no one welcomes higher bills, this moment also presents an opportunity to push for a more affordable, resilient, and clean energy future in Georgia. The question is: Will regulators and lawmakers listen?

Take Actioow

Don’t wait for the rate hikes to hit. Start today by:

• Calculating your potential increase with Georgia Power’s rate calculator.
• Scheduling a free energy audit to identify savings.
• Joining a local advocacy group to stay informed and amplify your voice.
• Sharing this article with neighbors, colleagues, or small business owners who may be affected.

Energy policy can feel abstract—but its impacts on your bill, your community’s air quality, and Georgia’s economy are very real. By understanding the issues and taking small steps, you can mitigate costs, demand accountability, and help shape a smarter energy future.

What’s your take? Are you concerned about the rate hikes, or do you support the grid upgrades? Share your thoughts in the comments—or better yet, tell the PSC directly.