Georgia’s energy regulator ― the Public Service Commission ― is likely to impose a new regressive energy tax on hardworking Georgians, adding to the many recent and impending rate increases in electricity prices.
The PSC is expected vote today to approve the 2023 Integrated Resource Plan Update and permit Georgia Power ― a monopoly utility whose primary objective is to maximize corporate profit ― to build three new gas-fired combustion turbines at Plant Yates with no guarantee that there will be no electricity rate increase in 2025. This plan will allow Georgia Power affiliate companies to profit from decades of fuel supply to the new fossil power plant.
In theory, the PSC regulates the monopoly. Since at least 2007, the PSC has granted virtually everything Georgia Power has asked for, including a $35 billion dollar Vogtle nuclear project (the most expensive power project in the United States) and now a new build-out of fossil gas power as well as extending the life of money-losing uneconomic fossil capacity in Mississippi. In practice, the PSC favors economic growth über alles and ignores the devastating impact of its policy decisions on lower-income residential customers.
According to WABE, “Between 2023 and 2025 there are six planned bill increases for Georgia Power customers: three stemming from the rate case, two for Vogtle nuclear construction costs, and a sixth to cover higher-than-expected costs of natural gas.” The last item, a natural gas rider, is the largest increase among the six and is a result of the PSC rejecting a sensible request that Georgia Power share in 5% of the cost of natural gas. Instead, 100% of the cost is passed through directly to customers, who wear 100% of the risk. GPC profits at the expense of hardworking Georgians.
Credit: handout
Credit: handout
The most troubling aspect of Georgia’s energy tax is the disregard for the low-cost solutions of residential and commercial rooftop solar and storage. Despite its potential to reduce electricity bills, promote energy independence, increase capacity resources, foster grass-roots economic growth and do all of this at a low cost, the PSC and Georgia Power completely ignore residential rooftop solar in favor of maintaining the utility monopoly and extractive corporate profits. This failure to embrace alternative energy sources locks Georgia into decades of fossil fuel dependence and is a massive tax on energy in Georgia.
The PSC’s close relationship with the utility company is evident in the secret stipulation agreement negotiated between the two parties and released as a done-deal just minutes before oral hearings, followed by Georgia Power Company arguing that any changes made to the stipulation would be inappropriate. This agreement, if approved by the PSC, would grant virtually everything the utility company asked for, locking in decades of costly fossil gas operations. It would disregard the factual record in this docket that shows lower-cost alternatives are commercially available today, and it would further erode trust in the regulatory process and democratic process.
The PSC must reject the Plant Yates CTs and other fossil capacity and consider solutions such as Virtual Power Plants and residential solar plus storage programs to meet the state’s growing capacity and energy needs. Virtual Power Plants can optimize energy usage and reduce costs by aggregating distributed energy resources ― without building new fossil power plants. Residential solar plus storage solutions can empower individuals to manage their energy consumption and reduce their reliance on the grid. These solutions not only benefit residents but also contribute to a more sustainable energy future for Georgia.
Peter Hubbard is a clean energy advocate and chief executive of Georgia Center for Energy Solutions, a Georgia-based nonprofit with residential electricity customer membership that has intervened in the past three Integrated Resource Plans to advocate for an increase in clean energy and fair treatment for residential customers.
