The Georgia Power Company 2022 Rate Case concluded on December 20, 2022 with a Settlement Agreement that allows Georgia Power Company to collect an incremental $1.8 billion during the period 2023-2025. The Georgia Public Service Commission also voted 4-1 to allow Georgia Power Company to collect a Return on Equity that can reach 11.9% before the Company must share a fraction of excess profits with Georgia ratepayers. The 11.9% ceiling is well above the national utility average ROE of 9.5%.

However, the Georgia Public Service Commission allows Georgia Power Company to keep profits above the top tier of the earnings band. In 2022 Georgia Power Company’s ROE was an astonishing 13.69%. This extremely high ROE violates the basic risk return ratio that governs capital investments which says that the greater the risk, the greater the return. Georgia Power Company earns a return far above the risk it faces for capital investments and it earns this extremely high return despite poor service with longer and more numerous service outages than many of its utility peers while paying chief executives of Georgia Power Company and Southern Company $5 million up to $35 million or more annually for their wisdom and leadership.

What is the public policy interest that is served by allowing Georgia Power Company to collect a 13.69% Return on Equity in 2022 when the national utility average ROE is 9.5% or more than 44% higher than the average utility? This is unadulterated wealth extraction from hardworking Georgians, happening every day.

Many compelling arguments were made to lower the generous earnings that Georgia Power Company will reap from Georgia ratepayers. One argument that was not made formally but was provided to the Commission—and may have helped at least one Commissioner to argue for a lower ROE—is a three-fold argument for the impact Vogtle Units 3&4 will have on rates. Briefly, the newest nuclear units at Plant Vogtle will lower system dispatch costs, will allow the company to collect zero-emission credits, and will boost revenues through off-system sales on the Southeastern Energy Exchange Market. For more detail, please click the white paper image below.

Source of Figure 2 - Georgia Power Company Return on Equity in 2022 of 13.69% is the Georgia Power Company Annual Surveillance Report 2022 ( https://psc.ga.gov/search/facts-document/?documentId=193593 )