New stipulated agreement offers $285 million in annual savings for Georgia Power customers starting this summer

Georgia Power, a subsidiary of Southern Company (NYSE: SO), reached a stipulated agreement with Georgia PSC Public Interest Advocacy Staff covering fuel and storm cost recovery.

Rhea-AI Summary

Georgia Power, a subsidiary of Southern Company (NYSE: SO), reached a stipulated agreement with Georgia PSC Public Interest Advocacy Staff covering fuel and storm cost recovery.

If approved later this month, a typical residential customer using 1,000 kWh is expected to save $4.04 per month, or nearly $50 per year, starting in June, reflecting about $285 million in annual customer savings. Savings result from a longer recovery period and use of additional production tax credits. Georgia Power also cites customer growth as supporting prior commitments, including expected annual savings of $102 per year for a typical customer beginning in 2029.

Positive

• Stipulated agreement expected to deliver about $285 million in annual customer savings
• Typical residential customer projected to save $4.04 per month, nearly $50 per year, starting June
• Longer recovery period and additional production tax credits used to reduce customer bills
• Customer growth supports earlier base rate freeze and expected $102 per year savings from 2029

Negative

• Agreement and related customer savings remain subject to Georgia PSC review and approval
• Forward-looking savings projections face risks from future rate cases and regulatory changes
• Catastrophic events and extreme weather could affect future costs and realized savings

Argus May 12 session

+0.40% close to close Open Argus

Details

News Market Reaction – SO

On May 12, the day this news came out, SO closed 0.40% above the previous close.

Data tracked by StockTitan Argus for the May 12 session.

Market Context

This announcement outlines a stipulated agreement expected to deliver about $285 million per year in...

Analysis

This announcement outlines a stipulated agreement expected to deliver about $285 million per year in savings, or roughly $4.04 per month, for a typical residential Georgia Power customer using 1,000 kWh. The agreement still requires Georgia Public Service Commission approval. In context of recent earnings growth and long-term plans, investors may watch how the final ruling, customer growth, and future rate structures interact with the utility’s earnings trajectory.

Key Figures

Annual customer savings: $285 million per year Monthly bill savings: $4.04 per month Estimated annual bill savings: Nearly $50 per year +5 more

Annual customer savings

$285 million per year

Stipulated agreement for Georgia Power customers

Monthly bill savings

$4.04 per month

Typical residential customer using 1,000 kWh, beginning June

Estimated annual bill savings

Nearly $50 per year

Typical residential customer, starting June

Earlier expected savings

Approximately $4 per month

Initial expectation for typical residential customer

Typical usage baseline

1,000 kilowatt-hours per month

Residential customer usage assumption

Rate advantage

15 percent below national average

Average Georgia Power rates since 1990

Future annual savings

$102 per year

Typical residential customer, beginning in 2029

Customer base

2.8 million customers

Georgia Power customers in Georgia

Historical Context

5 past events · Latest: May 06

5 events

1. May 06

   Corporate tribute

   24h Move

   -2.5%

   Statement honoring Ted Turner and highlighting past solar collaborations.

2. May 06

   Customer preparedness

   24h Move

   -2.5%

   Storm readiness campaign outlining tools and safety resources for customers.

3. Apr 30

   Quarterly earnings

   24h Move

   +3.4%

   Q1 2026 results with higher net income and 8% revenue growth year over year.

4. Apr 23

   Capacity planning

   24h Move

   -0.5%

   Filing for 2,000–6,000 MW RFP and added solar plus base-rate freeze details.

5. Apr 20

   Dividend increase

   24h Move

   -1.1%

   25th consecutive annual dividend increase and continuation of long payout streak.

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, production tax credits, kilowatt-hours, public service commission, +3 more

7 terms

fuel cost recovery regulatory

"the Fuel Cost Recovery (Docket 56765) case and Storm Cost Recovery"

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.

production tax credits financial

"lengthening the recovery period and leveraging additional production tax credits"

Production tax credits are financial incentives offered to support the development of certain energy projects, such as renewable power sources. They provide a dollar amount for each unit of energy produced, helping to reduce the project's overall costs. For investors, these credits can improve the project's profitability and attractiveness by making renewable energy investments more financially appealing.

kilowatt-hours technical

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

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.

public service commission regulatory

"subject to review and approval by the Georgia Public Service Commission"

A public service commission is a government agency that oversees essential services like electricity, water, gas and sometimes transport or telecoms, acting like a referee who sets rules, approves rates and issues operating licenses. Investors watch its decisions because the commission can raise or lower what customers pay, require costly upgrades, or limit a company's ability to expand, directly affecting utility revenues, profits and investment risk.

form 10-k regulatory

"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 Report on Form 10-Q for the quarter ended March 31, 2026"

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 statements regulatory

"Cautionary Note Regarding Forward-Looking StatementsCertain information"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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Savings of approximately $4 per month for the typical residential customer expected in June;
Agreement subject to review and approval by the Georgia Public Service Commission

ATLANTA, May 12, 2026 /PRNewswire/ -- Georgia Power and the Public Interest Advocacy (PIA) Staff of the Georgia Public Service Commission (PSC) have reached a stipulated agreement in two cases originally filed with the Georgia PSC in February – the Fuel Cost Recovery (Docket 56765) case and Storm Cost Recovery (Docket 44280) case. The cases sought to recover the cost of fuel to operate power generation plants to serve customers and to recover costs to quickly and safely restore electric service following storms of all sizes, notably the historic Hurricane Helene in 2024.

When filed, Georgia Power announced that it expected the two cases to have a cumulative effect of lowering overall rates for customers beginning this summer if approved. Today's stipulated agreement, which remains subject to review and approval by the Georgia PSC later this month, brings even better news for customers, with the typical residential customer using 1,000 kilowatt-hours a month expected to save $4.04 per month, or nearly $50 per year, beginning in June. The savings, approximately $285 million per year, are the result of constructive negotiations between the company and PIA Staff, including lengthening the recovery period and leveraging additional production tax credits for the benefit of customers.

"We know that our customers depend on us to keep their power reliable and affordable every day, and to be ready to restore power safely and quickly following devastating storms like Hurricane Helene," said Tyler Cook, CFO and treasurer for Georgia Power. "Thanks to the hard work and diligence of our teams, the Georgia PSC PIA Staff, and many others involved in this open process over the last several months, we expect to be able to provide significantly more savings than we anticipated in February when we filed these cases. Lower rates mean real savings for Georgia families and businesses as the heat of summer begins which can lead to higher bills."   

Focused on Affordable Energy & Delivering Savings 
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.

With new residents moving to the state and large-load customers like data centers and manufacturers choosing Georgia, Georgia Power continues to work to ensure that growth benefits all Georgia Power customers. The growing pipeline of large-load customers is a key factor that enabled the company's earlier base rate freeze, and is helping spread fixed costs across a broader customer base and protect residential and small business customers. This growth has also allowed the company to commit to providing annual savings of $102 per year for the typical residential customer beginning in 2029.

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 the potential approval of the stipulated agreement and expected customer savings. 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, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms; the impact of recent and future federal and state legal and 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; current and future litigation or regulatory investigations, proceedings or inquiries; and catastrophic events such as fires, including wildfires, land movement, earthquakes, explosions, floods, high winds, tornadoes, hurricanes and other storms, solar flares, droughts, future epidemic or pandemic health events, wars, political unrest, or other similar occurrences. Georgia Power expressly disclaims any obligation to update any forward-looking information.

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SOURCE Georgia Power

FAQ

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

What customer savings are expected from Georgia Power’s new agreement for Southern Company (NYSE: SO)?

The agreement is expected to provide about $285 million in annual savings for Georgia Power customers. According to Georgia Power, a typical residential customer using 1,000 kWh may save $4.04 per month, or nearly $50 per year, if regulators approve.

How much will a typical Georgia Power residential customer save per month under the 2026 stipulated agreement?

A typical residential customer is expected to save about $4.04 per month, or nearly $50 per year. According to Georgia Power, these savings should begin in June, assuming Georgia Public Service Commission approval of the fuel and storm cost recovery agreement.

When will the new Georgia Power rate savings start if the Georgia PSC approves the SO subsidiary’s agreement?

Customer savings are expected to begin in June 2026 if the agreement is approved this month. According to Georgia Power, the stipulated deal with PSC staff still requires full Georgia Public Service Commission review and approval before lower charges take effect.

How does customer growth in Georgia affect future Georgia Power (SO) bill savings?

Customer and large-load growth help spread fixed costs across more users, supporting future bill reductions. According to Georgia Power, this growth enabled a base rate freeze and underpins a commitment to provide about $102 per year in annual savings for a typical customer starting in 2029.

What risks could impact the expected Georgia Power savings for Southern Company (SO) customers?

Expected savings are not guaranteed and depend on regulatory approvals and future conditions. According to Georgia Power, factors such as pending and future rate cases, legal or regulatory changes, litigation, and catastrophic events could cause actual results to differ materially from current expectations.

Is the Georgia Power stipulated agreement on fuel and storm costs already approved by the Georgia PSC?

No, the agreement is not yet approved and remains subject to Georgia PSC review later this month. According to Georgia Power, customer savings and lower rates will only occur if commissioners approve the stipulated fuel and storm cost recovery framework.