Georgia Power Rate Increase Possible Due to Losses from Helene

Millions of Georgians were left without power in the aftermath of Hurricane Helene, and now they may be facing potential rate increases to offset the costs incurred by Georgia Power. The impact of the storm was felt in Augusta, where homes experienced prolonged power outages, leading to gas station closures, store shutdowns, curfews, and ongoing traffic signal disruptions.

In a recent report to shareholders filed with the Securities and Exchange Commission, Georgia Power revealed that Hurricane Helene resulted in $1.1 billion in losses for the company, making it the most destructive storm they have ever encountered. The damage caused significant harm to their transmission and distribution infrastructure.

As Georgia residents navigate their holiday spending amid Black Friday deals stretching over weeks, the looming possibility of rate hikes raises questions about budgeting priorities. The company hinted at potential rate adjustments in their next base rate case, scheduled for 2025. In the past, Georgia Power has sought rate increases through such cases every three years, with the last one resulting in a 12% raise for customers.

While discussions about potential rate hikes continue, it’s important to note that Georgia Power maintains a storm recovery account funded by a portion of each customer’s bill to cover restoration costs post-disaster. The balance of this account, reported to be $1.2 billion as of September 30, would need to cover damages from all storms in a given year, suggesting a comprehensive approach to storm-related recovery costs.

In conclusion, Georgia Power’s response to the financial impact of Hurricane Helene highlights the intricate balance between customer rates, storm recovery funds, and regulatory oversight by the Georgia Public Service Commission. As the company navigates the aftermath of the storm, residents are advised to stay informed about potential rate changes and the broader implications for their utility bills.