Georgia Power delivers lower costs for customers with latest filings

Georgia Power (NYSE: SO) filed fuel cost recovery (Docket 56765) and storm cost recovery (Docket 44280) cases with the Georgia Public Service Commission on Feb. 17, 2026.

Rhea-AI Summary

Georgia Power (NYSE: SO) filed fuel cost recovery (Docket 56765) and storm cost recovery (Docket 44280) cases with the Georgia Public Service Commission on Feb. 17, 2026.

The company proposes recovering a $912 million storm under-recovery over four years while reducing the fuel portion of bills, which could yield a 1% average retail rate decrease and roughly $1.32/month savings for a 1,000 kWh residential customer beginning in June if approved.

Positive

• Proposed 1% average retail rate decrease starting June if approved
• Estimated residential savings of $1.32/month for 1,000 kWh customers
• Fuel-rate reductions driven by diverse generation mix and hedging
• Base rates frozen through at least 2028 per company plans

Negative

• Storm reserve under-recovered $912 million, to be recovered over four years
• Nearly $800 million in Hurricane Helene damage included in storm recovery

Argus Feb 18 session

-1.04% close to close Open Argus

Details

News Market Reaction – SO

In the Feb 18 session, SO declined 1.04%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement describes Georgia Power’s PSC filings to lower fuel rates while structuring recove...

Analysis

This announcement describes Georgia Power’s PSC filings to lower fuel rates while structuring recovery of a $912 million storm reserve, including nearly $800 million in damage from Hurricane Helene. It highlights a planned 1 percent rate decrease and about $1.32 in monthly savings for a typical residential customer if approved. Investors may focus on how these proceedings balance customer relief with recovery of past storm costs and long-term grid investment plans.

Key Figures

Storm reserve under-recovered: $912 million Hurricane Helene damage: Nearly $800 million Average customer rate change: 1 percent decrease +5 more

Storm reserve under-recovered

$912 million

Storm reserve balance proposed to be recovered over four years

Hurricane Helene damage

Nearly $800 million

Damage costs from 2024 Hurricane Helene, most destructive in company history

Average customer rate change

1 percent decrease

Overall rate impact if PSC approves filings

Typical residential savings

$1.32 per month

Customer using 1,000 kWh per month, if PSC approves

Storm infrastructure damage

12,200+ poles; nearly 5,000 transformers

Equipment damaged or destroyed by Hurricane Helene in 2024

Lines damaged

1,500+ miles

Power lines damaged or destroyed in Hurricane Helene

Long-term rate comparison

15 percent below

Company’s rates vs. national average since 1990, on average

Planned 2028 bill savings

Approximately $102 annually

Typical residential customer after next base rate case in 2028

Historical Context

5 past events · Latest: Jan 28

5 events

1. Jan 28

   Dividend declaration

   24h Move

   -0.6%

   Announced regular quarterly dividend of $0.74 per share with long payment record.

2. Jan 26

   Storm restoration update

   24h Move

   +0.8%

   Reported restoration of power to over 214,000 customers after Winter Storm Fern.

3. Jan 21

   Reputation ranking

   24h Move

   +0.4%

   Named No. 1 in electric and gas utilities on FORTUNE’s 2026 list.

4. Dec 30

   Nuclear milestone

   24h Move

   +0.0%

   Marked 50 years of nuclear power in Georgia and long-term high capacity factors.

5. Dec 22

   Community support

   24h Move

   +0.5%

   Announced $250,000 donation to HEAT for winter bill assistance across Georgia.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

fuel cost recovery, storm cost recovery, hedging, pass-through cost, +2 more

6 terms

fuel cost recovery financial

"today filed its expected Fuel Cost Recovery (Docket 56765) and Storm Cost"

A fuel cost recovery is a pricing mechanism companies use to adjust customer charges when fuel prices change, passing some or all extra fuel expense onto buyers through surcharges, riders, or tariff tweaks. For investors it matters because it influences how much a company’s revenue and profit swing with fuel price moves: strong recovery protects margins like a price add‑on that follows pump cost, while weak or regulated recovery can expose earnings to volatility.

storm cost recovery financial

"Fuel Cost Recovery (Docket 56765) and Storm Cost Recovery (Docket 44280)"

Storm cost recovery is the process by which a business seeks to recoup expenses tied to damage and cleanup after severe weather — for example through insurance claims, regulatory permission to raise customer charges, or one-time accounting adjustments. For investors it matters because recovery decisions change near-term profits, cash flow and future pricing for customers, and they can signal regulatory or legal risk that affects a company’s financial stability, like a storm-related bill being shifted to ratepayers or absorbed by the company.

hedging financial

"locking in supply and pricing today – a strategic planning process known as "hedging.""

Hedging is a way to protect an investment or future cash flows by taking an offsetting position or using a financial tool so that losses in one place are reduced by gains in another, like buying insurance for a car. It matters to investors because it can lower the chance of big losses and make returns more predictable, though it often comes at a cost and can limit upside gains.

View in glossary

pass-through cost financial

"Fuel charges are considered a pass-through cost for the company, with Georgia Power"

A pass-through cost is an expense a business pays on behalf of customers or that it is allowed to recover by charging customers the exact amount, rather than absorbing it as part of its profit. Think of it like a courier paying shipping fees for a package and adding the exact postage to the customer's bill. For investors, pass-through costs matter because they affect revenue and cash flow without changing underlying profit margins, and fluctuations can make a company’s sales look higher or more volatile than its real earnings.

storm reserve financial

"the company's storm reserve is under-recovered by $912 million, which the company"

A storm reserve is money or resources a company sets aside to cover costs from severe weather—such as repairs, emergency response, customer claims or service restoration—so those unexpected bills don’t hit its regular operating budget. For investors, a visible storm reserve is like a rainy-day jar: it reduces the chance of sudden losses or earnings swings after a storm but also means cash is held back from other uses.

kilowatt-hour technical

"typical residential customer using an average of 1,000 kWh per month."

A kilowatt-hour (kWh) is a unit of energy equal to running a 1,000-watt appliance for one hour — like keeping ten 100-watt light bulbs lit for an hour. Investors care because it’s the standard way utilities, renewable projects and battery companies measure production, consumption and revenue; changes in kWh demand, price or efficiency directly affect revenue, costs, capital needs and returns, much like gallons sold affects a petrol station’s income.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New filings with Georgia Public Service Commission propose overall decrease in rates beginning in June

ATLANTA, Feb. 17, 2026 /PRNewswire/ -- Georgia Power today filed its expected Fuel Cost Recovery (Docket 56765) and Storm Cost Recovery (Docket 44280) cases with the Georgia Public Service Commission (PSC). Together, the cases seek to lower costs for customers through two distinct filings. The first filing requests to recover the cost of fuel – including coal and natural gas – to operate power generation plants to serve customers, and the second filing requests to recover costs to quickly and safely restore electric service following storms of all sizes – from devastating hurricanes like Hurricane Helene to pop-up thunderstorms. The cumulative effect of the filings will result in overall lower rates for customers beginning this summer if approved by the Georgia PSC.

"Delivering reliable and affordable electricity to millions of Georgia homes and businesses requires prudent management and planning at every level, every day," said Tyler Cook, CFO and treasurer for Georgia Power. "While electricity rates are climbing in other parts of the country and demand growth is placing increasing pressure on power systems nationwide, we're working with the Georgia PSC to manage growth wisely, optimizing all areas of our business to allow us to provide savings to our customers."

Thanks to the strength of Georgia Power's diverse generation mix and strategic fuel planning program, the company has been able to reduce its fuel rate – decreasing the fuel portion of the bill significantly beginning in June. As the company adds additional natural gas generation, alongside other sources, to meet the demands of a rapidly growing Georgia, the company is working to protect customers from future fuel price volatility by locking in supply and pricing today – a strategic planning process known as "hedging."  Fuel charges are considered a pass-through cost for the company, with Georgia Power earning no profits on fuel costs.

Georgia Power works every day to ensure safe, efficient and timely response to severe weather including hurricanes, tornadoes, ice storms and more. Costs to repair damage and restore electricity are recovered through regular proceedings at the Georgia PSC, with the company managing a fluctuating reserve for storm costs. According to today's filing, the company's storm reserve is under-recovered by $912 million, which the company proposes recovering over the next four years. This includes nearly $800 million in damage from Hurricane Helene in 2024 – the most destructive storm in the company's history with 12,200+ power poles, 1,500+ miles of power lines and nearly 5,000 transformers damaged or destroyed. Even with this historic damage, Georgia Power was able to restore power quickly to millions of customers in the days following the storm, earning national recognition for its response as among the best in the industry.

Today's filings will be reviewed by the Georgia PSC through its established process, including input from various intervenors, in the coming months. If approved, expected fuel savings will be more than enough to offset storm costs resulting in a 1 percent rate decrease for the average retail customer, and savings of approximately $1.32 per month for the typical residential customer using an average of 1,000 kWh per month.

A Longstanding Focus on Affordability 
For more than 140 years, Georgia Power has worked to bring Georgians the energy they need at the lowest possible rates. Since 1990, the company has offered rates 15 percent below the national average, on average, while also offering flexible rate plans for residential and business customers, as well as a wide variety of programs to help customers save money and energy.

Over the last several years, Georgia Power has worked diligently with the Georgia PSC to plan to meet the needs of a growing Georgia, while keeping rates as stable as possible and making the investments needed in a reliable and resilient power grid. Due to this proactive approach, the company has been able to adapt quickly to changing market conditions and leverage growth to benefit all customers with results including a freeze on base rates through at least 2028, as well as a plan to provide annual savings of approximately $102 for the typical residential customer following the company's next base rate case in 2028.  

To learn more about how Georgia Power is delivering the clean, safe, reliable and affordable energy Georgians depend on, visit goog.

About Georgia Power 
Georgia Power is the largest electric subsidiary of Southern Company (NYSE: SO), America's premier energy company. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company's promise to 2.8 million customers in all but four of Georgia's 159 counties. Committed to delivering clean, safe, reliable and affordable energy, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Georgia Power offers rates below the national average, focuses on delivering world-class service to its customers every day and the company is recognized by J.D. Power as an industry leader in customer satisfaction. For more information, visit www.GeorgiaPower.com and connect with the company on Facebook (Facebook.com/GeorgiaPower), X (X.com/GeorgiaPower) and Instagram (Instagram.com/ga_power).

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SOURCE Georgia Power

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What rate change did Georgia Power (SO) propose in February 2026 and when would it take effect?

Georgia Power proposed an overall 1% average retail rate decrease if approved, effective beginning in June. According to the company, expected fuel savings would more than offset storm-recovery costs, producing roughly $1.32 monthly savings for a typical 1,000 kWh residential customer.

How much storm-related cost is Georgia Power (SO) seeking to recover and over what timeline?

Georgia Power is proposing recovery of a $912 million storm under-recovery over four years. According to the company, this amount includes nearly $800 million of damage from Hurricane Helene in 2024, the largest storm loss in its history.

How will the fuel cost filing affect Georgia Power (SO) customer bills starting June 2026?

The fuel filing is expected to lower the fuel portion of customer bills, yielding a 1% net rate decrease overall if approved. According to the company, strategic hedging and a diverse generation mix drove the projected fuel savings beginning in June.

What specific customer savings did Georgia Power (SO) quantify for a typical household?

A typical residential customer using 1,000 kWh is estimated to save about $1.32 per month if the PSC approves the filings. According to the company, fuel savings would more than offset storm-recovery charges to produce that net reduction.

How did Hurricane Helene impact Georgia Power (SO)'s infrastructure and costs?

Hurricane Helene caused extensive damage, including over 12,200 power poles, 1,500+ miles of lines and nearly 5,000 transformers damaged. According to the company, nearly $800 million of the $912 million storm under-recovery relates to that storm.