Small Changes Could Yield Big Savings for Georgia Electricity Customers

This policy brief by RMI outlines how the Georgia Public Service Commission (PSC) can reduce the high energy burden on Georgia electricity customers through specific regulatory reforms. It argues that while Georgia has low electricity rates, it has some of the highest bills in the contiguous US, disproportionately affecting low-income and minority households. The document proposes four primary levers for the PSC: implementing securitization, reforming the Return on Equity (ROE) for Georgia Power, establishing fuel-cost sharing mechanisms, and updating system planning to align with the Inflation Reduction Act (IRA).

• Georgia residents face significant energy burdens despite having low electricity rates, with the state ranking fifth for the highest electricity bills in the contiguous United States. This burden is most severe for low-income households; in 2020, those earning less than 30 percent of the area median income (AMI) spent an average of 17.2 percent of their income on energy, while those earning 30 to 60 percent of AMI spent 6.8 percent.
• Georgia Power's Return on Equity (ROE) has exceeded the national average since at least 2011. The current ROE is 10.5 percent, compared to a national average of 9.3 percent. Georgia Power is seeking an increase to 11 percent, which is estimated to add $17 to the average customer's monthly bill. Analysis suggests that if the ROE had been set at the national average over the last decade, customers would have saved $1.25 billion, including $110 million in 2020.
• The document identifies several financial and planning mechanisms to lower costs: securitization could save Georgia Power customers $1.05 billion; fuel-sharing mechanisms, similar to those in Hawaii, Montana, and Idaho, could mitigate the impact of volatile natural gas prices; and updated system planning could leverage the Inflation Reduction Act (IRA) to make retiring coal by 2035 and replacing it with renewables and storage more affordable.
• Transmission and distribution (T&D) costs represent the largest and fastest-growing part of customer electric bills. Georgia currently lacks comprehensive planning for T&D compared to its planning for new generation, which may lead to customers paying for more expensive, capital-intensive projects.

APA

RMI (2022). Small Changes Could Yield Big Savings for Georgia Electricity Customers. https://rmi.org/resources/small-changes-could-yield-big-savings-for-georgia-electricity-customers/

Chicago

RMI. Small Changes Could Yield Big Savings for Georgia Electricity Customers. 2022. https://rmi.org/resources/small-changes-could-yield-big-savings-for-georgia-electricity-customers/.

Wikipedia

{{cite report |author=RMI |title=Small Changes Could Yield Big Savings for Georgia Electricity Customers |date=18 November 2022 |url=https://rmi.org/resources/small-changes-could-yield-big-savings-for-georgia-electricity-customers/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022small, author = {{RMI}}, title = {{Small Changes Could Yield Big Savings for Georgia Electricity Customers}}, institution = {RMI}, year = {2022}, month = nov, url = {https://rmi.org/resources/small-changes-could-yield-big-savings-for-georgia-electricity-customers/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }