A new vision for Georgia’s energy future means putting people and planet first
Skyrocketing power bills are placing a heavy burden on working families nationwide. Nowhere is this more evident than for Georgia Power customers, who pay amongst the highest utility costs in the U.S., according to Move.org.
And while this can be traced to many costly decisions by our Public Service Commission, the root cause is an outdated utility business model that is harmful to both ratepayers and the environment. The good news: it is fixable!
Remember firstly, that monopolies are illegal for almost all companies in the American economy, with a notable exception being investor-owned electric utilities like Georgia Power. Why? Because in the early days of America’s buildout of electric grids it became apparent that in such an expensive undertaking, it didn’t make economic sense to have competing grids.
The solution: granting ‘regulated’ monopolies under the conditions that, in exchange for guaranteed profits and captive customers, the utilities would serve the public’s interest, and that Public Service Commissions would be created to provide oversight and ensure reasonable rates and safe, reliable service.
Choose ‘energy justice’ to overcome ‘energy poverty’
Georgia’s energy system still operates under the original revenue model, which pays a guaranteed profit not on electricity sold, but instead on the massive infrastructure that utilities build, primarily power plants and transmission lines.
This “cost-of-service” model incentivizes building ever-more infrastructure and the more expensive the project, the more profitable for Georgia Power. Today, we feel the consequences in rising power bills and persistent reliance on fossil fuels, harmful both to our wallets and the environment.
But as clean energy today is now cheaper than fossil energy and the worsening climate crisis and its massive costs (i.e. floods, droughts, wildfires and more) have grown dramatically, this has turned the incentive structure upside down. Now utilities striving to maximize profits are inherently incentivized to work against clean energy and affordability. The evidence could not be clearer.
Six Geogia Power rate increases since 2023 — mostly to pay for nuclear Plant Vogtle, the most expensive power plant ever built — have placed a significant burden on Georgia families and businesses, while renewables make up only 8% of Georgia Power’s energy mix. Over this period residential customers have seen monthly bills rise over 30% and since 2010 rates have surged more than 70%, nearly double the rate of inflation over that period.
For many, these rising costs contribute to a growing “energy burden,” where a disproportionate amount of household income is spent on power bills. The hardest hit are low-income communities and often communities of color. In fact, one in seven U.S. families today live in “energy poverty”: sacrificing essentials like food or medicine to cover energy costs. And high power bills don’t just impact family budgets, they’ve been directly linked to increased mortality and decreased physical and mental health.
This is where a new approach rooted in the principles of “energy justice” can make a real difference. Energy justice is about achieving equity in our energy system to ensure that the social and economic benefits of clean energy are accessible to all, while also addressing the historical and ongoing burdens placed on frontline communities. Our current system fails on both counts. Not only do we pay more, but we remain heavily dependent on polluting fossil fuels.
Change the regulation incentives to make power more affordable
Other states recognized the need for change long ago and as a result, a modern regulatory framework has emerged known as “Performance-Based Regulation” (PBR), which ties utility profits to measurable public goals like energy affordability, grid reliability, and the integration of clean energy. This means that Georgia Power would be financially incentivized to do the right thing for its customers and the environment.
The PBR framework includes specific “Performance Incentive Mechanisms” that can be tailored to meet a state’s unique needs. For example, we could reward the utility for making energy more affordable for low-income residents, investing in energy efficiency programs that reduce overall demand, or building Community Solar projects accessible to everyone.
Other states like Hawaii and New York have successfully implemented PBRs to drive down costs, increase grid reliability, and meet ambitious clean energy goals. As of 2024, at least 28 states were either implementing or exploring PBR. This is a proven model for a 21st-century energy system and the potential for Georgia is enormous.
By realigning Georgia Power’s incentive structure with the public good, we can create a system that is more affordable, reliable and just for every Georgian.
Good policy begins by electing knowledgeable public servants. You can spur this change by voting in the Public Service Commission election on Tuesday.
Dave Sillman of Buford, Georgia, is a board member of Georgians For Affordable Energy.
