Georgia Power may increase rates to offset losses from Hurricane Helene
Georgia Power, leaving many Georgians without power. The company estimated that the storm incurred $1.1 billion in costs due to the damage caused to their infrastructure.
To cover these costs, Georgia Power has a Storm Recovery Account, where a portion of each customer’s bill is allocated to cover restoration expenses after major storms. The balance of this account as of September 30 was $1.2 billion, which is meant to cover damages from all storms throughout the year, not just Hurricane Helene.
In their filings with the SEC, Georgia Power mentioned that the rate of storm damage recovery is expected to be adjusted as part of the next base rate case, which is scheduled for 2025. During the last base rate case in 2022, the Georgia Public Service Commission approved a 12% rate increase for Georgia Power customers, and the company is currently in the process of implementing that increase.
While it’s uncertain whether rates will be raised specifically due to Hurricane Helene, the issue of cost recovery from this unprecedented storm will be evaluated as part of the upcoming base rate case. Georgia Power reassured that the costs related to storms are not expected to have a significant impact on their net income, but they will be addressed transparently through regulatory proceedings.
As the situation develops, WTOC will continue to provide updates on Georgia Power’s recovery efforts and any potential rate adjustments. Stay tuned for more information on this ongoing issue.
