Small Changes Could Yield Big Savings for Georgia Electricity Customers

Georgia electricity customers face high energy burdens, particularly low-income households and people of color, despite relatively low electricity rates. The document identifies several regulatory levers the Georgia Public Service Commission (PSC) could use to lower costs, including reducing Georgia Power's return on equity (ROE) to the national average, implementing fuel-sharing mechanisms to mitigate natural gas price volatility, and updating the Integrated Resource Plan to incorporate Inflation Reduction Act incentives. It also suggests securitization as a means to save customers $1.05 billion and recommends comprehensive transmission and distribution planning to avoid unnecessary capital-intensive spending.

• Georgia has the fifth highest electricity bills in the contiguous United States, with energy burdens disproportionately affecting low-income multifamily or renting households and people of color. In 2020, customers earning less than 30 percent of the area median income (AMI) spent an average of 17.2 percent of their income on energy costs, while those earning 30 to 60 percent of AMI spent 6.8 percent.
• Georgia Power's current return on equity (ROE) is 10.5 percent, which exceeds the national average of 9.3 percent. If the ROE had been set at the national average over the last 10 years, customers would have saved $1.25 billion, including $110 million in 2020. The utility is currently seeking to increase this ROE to 11 percent, which is estimated to add $17 to the average customer's monthly bill.
• Georgia ratepayers spent nearly $3 billion on fossil fuels during the pandemic. Current fuel-cost practices allow Georgia Power to pass fuel costs directly to customers, leaving them vulnerable to natural gas price volatility. The document suggests Georgia could emulate fuel-sharing mechanisms used in Idaho, Montana, and Hawaii.
• The 2022 Integrated Resource Plan (IRP) for Georgia Power was filed before the Inflation Reduction Act (IRA), meaning it does not account for incentives that could lower the cost of retiring coal capacity by 2035 and replacing it with renewables and storage. Additionally, the document notes that Georgia lacks comprehensive planning for transmission and distribution (T&D), which is the largest and fastest-growing part of customer bills.
• The use of a financial mechanism known as securitization could potentially save Georgia Power customers $1.05 billion and facilitate a transition away from fossil fuels.

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} }