ATLANTA – Georgia Power’s pledge this week to freeze rates for the next three years would benefit both the utility’s customers and bolster the state’s ability to attract jobs and investment, Gov. Brian Kemp said Wednesday.
“This is good news,” Kemp told reporters during a news conference at the state Capitol. “Georgia’s going to be in a great place.”
Kemp appeared with two members of the state Public Service Commission two days after Georgia Power and the commission’s Public Interest Advocacy Staff announced an agreement to hold the line on base rates through 2028. The agreement, subject to the PSC’s approval, would cancel the rate case the company had been planning to submit by July 1.
Georgia Power has raised rates three times in the past three years, a period that has seen a huge increase in demand for electricity sparked in large part by the rapid growth of power-hungry data centers across the state.
“All of our neighboring states are going to have massive increases,” commission Chairman Jason Shaw said Wednesday. “We’ve worked on our grid system so we can handle this growth.”
Wednesday’s news conference took place amid a backdrop of criticism from consumer watchdog and environmental groups that the proposed agreement would not prevent some rate hikes because the deal would allow Georgia Power to recover from ratepayers increased fuel costs and costs associated with Hurricane Helene, which devastated large portions of the southern and eastern halves of the state last September. Under the agreement, the PSC would consider those costs next year.
Shaw, who lives in South Georgia, noted that his region has been hit by hurricanes three times in the last 14 months.
“These are reasonable and prudent expenses,” he said.
Kemp said freezing Georgia Power’s rates would make Georgia more attractive to prospective business tenants.
“This will be a huge talking point as we compete with other states,” he said.
The governor pushed back on arguments from critics that the rate freeze is being timed to coincide with this year’s PSC elections. If the commission approves the agreement, incumbent Commissioners Tim Echols and Fitz Johnson – both Republicans – wouldn’t have to vote on a rate hike before voters decide whether to retain them in office.
“We’re not basing our calendars on when political elections are coming up,” Kemp said.
The PSC will hold a public hearing on the proposed agreement on June 26 ahead of a vote set for July 1.
Commissioner Lauren “Bubba” McDonald appeared with Kemp and Shaw at Wednesday’s news conference.