Georgia Power Rate Increase Possible Due to Helene Losses

After Hurricane Helene wreaked havoc on Georgia, millions of residents found themselves without power. In Augusta, many homes were left in the dark for days, and in some cases, weeks. The impact of the power outages extended beyond just electricity – it disrupted daily life, leading to gas station closures, store shutdowns, curfews, and ongoing traffic signal issues. Georgia Power recently disclosed to its shareholders that the damages from the storm amounted to a staggering $1.1 billion, making it the most destructive event the company has ever faced.

With the financial burden of the storm in mind, Georgia Power mentioned in a recent filing with the Securities and Exchange Commission that they are considering adjusting rates as part of their recovery process. Every three years, the company undergoes a base rate case with the Georgia Public Service Commission to review and potentially revise customer rates. The next scheduled base rate case is set for 2025, following a 12% rate increase that was approved in 2022.

When asked about the possibility of raising rates to cover losses from Hurricane Helene, Georgia Power clarified that they maintain a storm recovery account funded by a portion of each customer’s bill. As of September 30, the storm recovery account balance stood at $1.2 billion, meant to cover restoration costs from all storms throughout the year, not just Helene.

In conclusion, while Georgians may be feeling the strain of potential rate increases, it’s essential to recognize the efforts being made to balance the recovery process from the aftermath of Hurricane Helene. The impact of the storm will be felt for some time, but Georgia Power is working to ensure that resources are in place to address the challenges ahead.