Georgia PSC approves plan to deliver savings for electric customers, meet energy demands of a growing state

Rhea-AI Summary

Georgia Power (NYSE: SO) said the Georgia Public Service Commission approved a plan to procure approximately 9,900 MW of diverse generation and storage to serve projected state growth. The company and Public Interest Advocacy Staff agreed incremental large-load revenue will deliver at least $556 million per year in benefits, equivalent to about $8.50/month or $102/year in savings for a typical residential customer using 1,000 kWh/month. The plan keeps the company's current three-year base rate freeze in place and includes development of combined-cycle natural gas, battery energy storage, solar+BESS and power purchase agreements.

Georgia Power noted a pipeline of nearly 30 large-load projects, more than 3 GW of new customer contracts filed this year, and cited statewide economic investment of $26 billion and > 23,000 private-sector jobs tied to recent development.

Positive

• Estimated customer savings of $102/year
• Plan to procure ~9,900 MW of resources
• Commitment to provide ≥$556M annual benefits
• Filed >3 GW of new customer contracts this year
• Maintains current three-year base rate freeze

Negative

• Execution risk: potential cost and schedule overruns during construction
• Growth dependency: benefits rely on projected large-load demand materializing

Key Figures

Customer savings $102 per year Estimated annual bill reduction for typical residential customer

Incremental revenue $556 million per year Targeted benefits from large-load customers for base rate case

Monthly customer benefit $8.50 per month Equivalent bill reduction for typical 1,000 kWh/month customer

New generation resources 9,900 MW Planned diverse, cost-effective generation to meet growth

Combined cycle gas 3,600 MW Requested new combined cycle natural gas generation

Battery storage 3,000 MW New battery energy storage systems (BESS)

Solar plus BESS 350 MW Battery energy storage plus solar resources

Power purchase agreements 2,800 MW Additional capacity via power purchase agreements

Market Reality Check

$87.18 Last Close

Volume Volume 5,488,486 is below the 20-day average of 6,514,712 (subdued activity pre-news). normal

Technical Price 87.22 is below the 200-day MA at 91.56, indicating a weaker intermediate trend.

Peers on Argus

SO’s pre-news gain of 0.22% came with mixed peer moves: DUK +0.18%, AEP +0.50%, XEL +0.46% versus NGG -0.60% and D -0.46%, suggesting stock-specific rather than broad sector momentum.

Market Pulse Summary

This announcement details Georgia PSC approval for Georgia Power to procure 9,900 MW of new resources while targeting customer savings of about $102 per year and at least $556 million per year in benefits from large-load customers. For SO, this fits within a regulated framework where growth in demand, bill impacts, and execution on new gas, storage, and PPA capacity are key watchpoints. Investors may also monitor ongoing PSC filings, large-load reports, and future rate cases.

Key Terms

megawatts technical

"procuring approximately 9,900 megawatts (MW) of diverse, cost-effective"

A megawatt is a measure of electrical power equal to one million watts, describing how much electricity a plant or device can generate or use at a single moment. Investors use megawatts to compare the size and earning potential of energy projects—larger capacity usually means more electricity to sell—much like comparing the horsepower of engines to judge how much work they can do. Knowing megawatts helps assess scale, revenue potential, and grid impact of energy assets.

kilowatt-hours technical

"typical residential customer using 1,000 kilowatt-hours per month"

A kilowatt-hour (kWh) is a unit of energy equal to one kilowatt (1,000 watts) of power used continuously for one hour; it’s the standard way utilities measure and bill electricity. Investors use kWh to compare how much electricity a plant generates, a device consumes, or a storage system can deliver, much like liters tell you how much fuel was used — it directly ties to revenue, costs and the economic value of energy assets.

battery energy storage systems technical

"more than 3,000 MW of new battery energy storage systems (BESS); 350 MW"

Large, grid-connected rechargeable battery systems that store electricity for later use, like a giant household battery for cities or power plants. They matter to investors because they help balance supply and demand, enable more renewable energy, reduce outage risk, and create revenue through services such as selling stored power at peak times or participating in grid stability programs, while requiring upfront capital and having performance limits tied to lifespan and degradation.

power purchase agreements financial

"and more than 2,800 MW of power purchase agreements."

A power purchase agreement is a long-term contract in which a buyer agrees to purchase electricity from a specific generator at a set price and schedule, much like a multi-year subscription for energy. For investors, these contracts matter because they lock in predictable revenue and price terms, reducing exposure to volatile wholesale power markets and making project cash flows and financing risks easier to evaluate.

gigawatts technical

"The company has filed more than 3 gigawatts of new customer contracts"

A gigawatt is a unit of power equal to one billion watts, used to measure how much electricity a plant or project can produce at any moment. For investors, it’s a quick way to compare scale — like comparing the horsepower of engines — and shows how large a power asset or renewable portfolio is, which affects potential revenue, grid influence, and the size of required investment.

Form 10-K regulatory

"in Georgia Power's Annual Report on Form 10-K for the year ended"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

Form 10-Q regulatory

"Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

forward-looking information regulatory

"Forward-looking information includes, among other things, statements concerning"

Forward-looking information are predictions, plans, estimates or expectations about a company’s future performance, results or events, such as sales forecasts, project timelines, or anticipated costs. It matters to investors because these statements guide expectations but rely on assumptions and uncertain factors—like a weather forecast for a business—so investors should treat them as informed guesses rather than guarantees and consider the risks and possible changes behind the numbers.

AI-generated analysis. Not financial advice.

Plan will deliver estimated savings of approximately $102 per year for the typical residential customer; Growth continues to create thousands of new jobs and billions of dollars of positive economic impact expected across Georgia

ATLANTA, Dec. 19, 2025 /PRNewswire/ -- Georgia Power announced today that the Georgia Public Service Commission (PSC) has approved a plan which will allow the company to proceed with procuring approximately 9,900 megawatts (MW) of diverse, cost-effective generation resources to serve the energy needs of a growing state. The plan follows a stipulated agreement the company recently reached with the Public Interest Advocacy (PIA) Staff, where Georgia Power agreed that it will file its next base rate case in 2028 in a manner that will ensure incremental revenue from large-load customers will provide benefits of at least $556 million per year, equivalent to $8.50 per month (or approximately $102 per year) for the typical residential customer using 1,000 kilowatt-hours per month. These significant savings for Georgia Power customers reinforce the company's commitment to delivering affordable energy for customers in the face of projected extraordinary growth, and follows the current freeze on the company's base rates announced earlier this year.

Kim Greene, chairman, president and CEO of Georgia Power, highlighted the benefits of the agreement when it was reached with PIA Staff, saying, "We know every dollar counts. This plan means more money stays in your pocket while we power Georgia's future. Unlike any other market in the country, we're doing things differently here in Georgia to capture and serve this projected unprecedented growth. Large energy users are paying more so families and small businesses can pay less, and that's a great result for Georgians."

The plan approved today follows months of review and discussion of Georgia Power's original filing in July, which requested the certification of more than 3,600 MW of new combined cycle natural gas generation; more than 3,000 MW of new battery energy storage systems (BESS); 350 MW of BESS plus solar; and more than 2,800 MW of power purchase agreements. These resources will serve and benefit all Georgia Power customers as part of a diverse generation mix, and construction projects are expected to positively impact communities across the state.

Georgia continues to experience extraordinary growth, with record-breaking investment in the state of more than $26 billion and more than 23,000 new private sector jobs expected from economic development activities in the last fiscal year, according to the Georgia Department of Economic Development. Georgia Power continues to work with the Georgia PSC to meet the projected demand for electricity, as growth drives new jobs and tax revenue for cities and counties across the state.

"Growth is good for Georgia and for communities of all sizes. The decision by the Georgia PSC today will help keep our state competitive by demonstrating that we are ready to meet the energy demands of new businesses for years to come," added Greene. "We appreciate the work of the PSC, and all those who participated in this important process."

Large-Load Growth Continues

Georgia Power will continue to file quarterly large-load reports with the Georgia PSC providing regular updates on forecasted growth and electrical demand. The company's latest report in November highlights that large-load growth continues to materialize with thousands of megawatts of new electrical load projected in the coming years and construction underway or pending for nearly 30 large-load projects across the state. This growing pipeline of high-demand customers is a key factor enabling the company's current three-year base rate freeze (excluding storm costs), helping to spread fixed costs across a broader customer base and protect residential and small business customers from paying more to serve large-load customers.

Following the Georgia PSC's approval of updates to rules and regulations for the company in January, potential large-load customers must now meet more stringent criteria — including providing greater financial commitments and demonstrating infrastructure readiness — to remain in the company's long-term development pipeline. These enhanced requirements help ensure that only the most credible and viable projects are included in Georgia Power's risk-adjusted load forecast. The company has filed more than 3 gigawatts of new customer contracts with the Georgia PSC this year – agreements that were reached under the newly approved rules and regulations, which are designed to provide Georgia Power with the flexibility to sustainably serve large-load customers while safeguarding residential and small business customers from additional costs. Additional commitments are currently under evaluation by the company.

To learn more about how Georgia Power is keeping energy reliable and affordable for millions of Georgia homes and businesses, visit www.GeorgiaPower.com.

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).

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning projected demand growth and expected benefits from the approval of the stipulated agreement. Georgia Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Georgia Power; accordingly, there can be no assurance that such suggested results will be realized.  The following factors, in addition to those discussed in Georgia Power's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to return on equity, equity ratios, additional generating capacity and transmission facilities and fuel and other cost recovery mechanisms; the impact of recent and future federal and state regulatory changes, including tax, environmental and other laws and regulations to which Georgia Power is subject, as well as changes in application of existing laws, regulations and guidance; the extent and timing of costs and legal requirements related to coal combustion residuals; current and future litigation or regulatory investigations, proceedings or inquiries; the effects, extent and timing of the entry of additional competition in the markets in which Georgia Power operates, including from the development and deployment of alternative energy sources; variations in demand for electricity; available sources and costs of natural gas and other fuels and commodities; the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of facilities or other projects; legal proceedings and regulatory approvals and actions related to past, ongoing and proposed construction projects; the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives and to integrate facilities into the Southern Company system upon completion of construction; investment performance of the employee and retiree benefit plans and nuclear decommissioning trust funds; advances in technology, including the pace and extent of development of low- to no-carbon energy and battery energy storage technologies and negative carbon concepts; the ability to successfully operate Georgia Power's generation, transmission and distribution facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating nuclear generating facilities; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the direct or indirect effect on Georgia Power's business resulting from cyber intrusion or physical attack and the threat of cyber and physical attacks; global and U.S. economic conditions, including impacts from geopolitical conflicts, recession, inflation, changes in trade policies (including tariffs and other trade measures) of the United States and other countries, interest rate fluctuations and financial market conditions and the results of financing efforts; access to capital markets and other financing sources; changes in Georgia Power's credit ratings; the ability of Georgia Power to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars or other similar occurrences; the direct or indirect effects on Georgia Power's business resulting from incidents affecting the U.S. electric grid or operation of generating resources; and the effect of accounting pronouncements issued periodically by standard-setting bodies. Georgia Power expressly disclaims any obligation to update any forward-looking information.

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SOURCE Georgia Power

FAQ

What did Georgia Power (SO) get approved by the Georgia PSC on December 19, 2025?

The PSC approved a plan to procure approximately 9,900 MW of generation and storage to meet projected state growth.

How much will Georgia Power's plan save the typical residential customer (SO)?

The company estimates about $102 per year for a customer using 1,000 kWh per month.

What is the annual benefit amount tied to large-load revenue in Georgia Power's (SO) agreement?

The stipulated agreement commits at least $556 million per year in benefits from large-load incremental revenue.

What generation types are included in Georgia Power's (SO) procurement plan?

The plan includes combined-cycle natural gas, >3,000 MW of battery energy storage, solar+BESS, and >2,800 MW of PPAs.

How does the plan affect Georgia Power's (SO) base rates and timing for the next rate case?

The company will keep a current three-year base rate freeze and agreed to file its next base rate case in 2028.

How many large-load projects and customer contracts has Georgia Power (SO) reported?

Georgia Power reported nearly 30 large-load projects in development and filed more than 3 GW of new customer contracts this year.