The cost of electricity for rural Georgia residents is complex, with rates increasing in some areas in early 2025 while base rates for Georgia Power customers are frozen until 2028. The final impact on a rural customer's bill depends on their provider and variable factors like fuel and storm costs.
Georgia
Power customers
Most rural Georgians are served by electric membership cooperatives (EMCs), not Georgia Power. However, for the 2.3 million customers served by Georgia Power, the situation is as follows:
January 2025 rate increase: In January 2025, customers saw the final phase of a rate hike that was approved in 2022. This led to an increase of about $5.85 per month for the typical residential customer.
Base rate freeze: Following this final scheduled increase, the Georgia Public Service Commission (PSC) and Georgia Power agreed to freeze base rates at the current level through 2028.
Caveats to the freeze: The freeze does not apply to other costs, such as those related to fuel and storm recovery, which can cause bills to fluctuate. For example, the PSC will address storm recovery costs from Hurricane Helene in 2026, which could increase bills at that time.
Electric
membership cooperative (EMC) customers
For
rural residents served by one of Georgia's EMCs, electricity rates are managed
differently than for Georgia Power customers.
Independent decisions: EMCs set their rates independently, though their power costs are influenced by the wholesale market. The decisions of individual EMCs vary.
Variable fuel and generation costs: Many EMCs rely on wholesale power suppliers whose rates can be volatile. Increases in the cost of natural gas, for example, could be passed through to customers.
Plant Vogtle costs: As new nuclear units at Plant Vogtle have come online, they have impacted the cost of power for cooperatives. This is a contributing factor to bill increases in recent years.
Why
bills are still higher
Even
with the Georgia Power base rate freeze, customers may still feel like their
overall bill is increasing due to several factors:
Past increases: Customers are already dealing with the cumulative effect of a half-dozen rate increases from 2023 through early 2025.
Fuel
costs: Variable fuel costs can raise bills even when base rates are
frozen.
Storm
costs: The deferral of storm-related costs until 2026 means that bills are
not completely insulated from future increases.
Inflation and demand: A nationwide increase in electricity prices and soaring demand from new data centers are contributing to higher costs.
The base rates for many rural Georgia electricity providers did increase in January 2025, continuing a trend of recent hikes. However, the state’s primary utility, Georgia Power, froze its base rates for the remainder of 2025 and through the end of 2028 under an agreement with state regulators. This creates a mixed picture for rural customers, some of whom are served by Georgia Power, while others are served by electric cooperatives.
Impact
on Georgia Power customers
January
2025 increase: In January 2025, Georgia Power customers, including those
in rural areas, saw the final phase of a rate increase that was approved in
2022. For an average residential customer, this added about $5.85 to the
monthly bill.
Base
rate freeze through 2028: Following the January increase, the Georgia
Public Service Commission (PSC) approved a plan that freezes Georgia
Power's base rates through at least 2028. This agreement was
made to provide more stability for customers.
Possible
bill increases: Despite the base rate freeze, it is not a complete
guarantee that your total bill will not increase. The agreement allows for
separate increases to cover specific costs, such as the recovery of expenses
from Hurricane Helene in 2024. These storm costs are expected to be addressed
in 2026.
Impact on electric cooperative customers
Electric
cooperatives, which serve many rural areas, are not covered by the same rate
agreements as Georgia Power. While specifics vary by cooperative, many have
implemented recent rate changes:
Jackson
Electric Membership Corporation (EMC): This cooperative, which serves a
large portion of rural North Georgia, increased its rates for most customers in
October 2024. A separate time-of-use rate also took effect in January 2025.
Co-ops set their own rates: Unlike Georgia Power, electric cooperatives are member-owned and set their own rates, though they are influenced by many of the same cost factors.
Broader
factors affecting Georgia electricity costs
Several statewide issues point toward continued pressure on electricity rates across Georgia in the long term:
Rising demand: The state's rapid economic growth, driven by new data centers and industry, is significantly increasing electricity demand. The investment required to meet this demand, including the costs for new infrastructure and generation, could eventually lead to higher costs for consumers.
Increased
fuel costs: Fuel costs for generating electricity have been on the rise.
While lower fuel prices could help offset some increases in the near term, a
renewed rise in prices could lead to higher bills.
Storm recovery: Significant expenses from severe weather events like Hurricane Helene in 2024 will eventually be passed on to customers through separate rate adjustments.
https://www.google.com/search?q=will+rural+georgia+electricity+provider+rates+increase+in+2025
Comments
It is likely that some Georgia Farmers will sell their land to Data Center Owners and retire. Data Centers will create more small cities.
Norb Leahy, Dunwoody GA Tea Party Leader
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