Stipulated agreement reached to help keep electricity affordable and meet future energy demand in Georgia

Rhea-AI Summary

Georgia Power (NYSE: SO) reached a stipulated agreement with the Georgia PSC Public Interest Advocacy Staff, scheduled for a PSC vote in December 2025, designed to lower customer costs while enabling ~9,900 MW of new resources to meet rapidly growing electricity demand.

The agreement forecasts at least $556 million in incremental annual revenue from large-load customers, putting downward pressure on rates by about $8.50/month (~$102/year) for a typical residential customer using 1,000 kWh/month; it permits procurement of combined cycle gas, battery energy storage, solar+BESS and power purchase agreements.

Positive

• Estimated customer savings of $102/year for typical residential user
• Agreement supports procurement of ~9,900 MW of new resources
• Projected incremental revenue of $556 million/year from large-load customers
• Includes >3,600 MW combined-cycle gas and >3,000 MW BESS procurements

Negative

• Agreement requires Georgia PSC approval before changes take effect
• Three-year base rate freeze excludes storm costs, leaving potential exposure

Key Figures

Annual bill savings $102 per year Estimated reduction for typical residential customer using 1,000 kWh/month

Incremental revenue $556 million per year Minimum annual incremental revenue from large-load customers at next 2028 rate case

Monthly rate reduction $8.50 per month Expected downward pressure on typical residential bill if agreement approved

New resources certified 9,900 MW Approximate capacity under review in current certification proceeding

New gas generation 3,600+ MW Combined cycle natural gas capacity in stipulated agreement

Battery storage 3,000+ MW Standalone battery energy storage systems (BESS) planned

Power purchase agreements 2,800+ MW PPAs included as part of diverse new resource mix

Large-load projects ≈30 projects Construction underway or pending for nearly 30 high‑demand projects in Georgia

Market Reality Check

$85.49 Last Close

Volume Volume 6,652,093 vs 20-day average 5,915,186 (relative volume 1.12x) ahead of this news. normal

Technical Price $85.49 is trading below the 200-day MA at $91.70 and about 15% under the 52-week high.

Peers on Argus

While SO was nearly flat at -0.08%, key regulated electric peers were also slightly negative: DUK -0.48%, NGG -0.82%, AEP -0.18%, D -0.49%, XEL -0.07%. The move appears modest and broadly in line with peers rather than a clear, stock-specific reaction.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	Transmission expansion	Positive	-0.8%	Major South Metro Atlanta transmission upgrades under PSC‑approved 10‑year plan.
Dec 02	Rate stability	Positive	+0.0%	Alabama Power commitment to keep regulated retail rate components steady through 2027.
Nov 26	Customer engagement	Positive	+1.1%	Light Up the Holidays contest with Atlanta Falcons to boost customer engagement.
Nov 10	Community support	Positive	-0.7%	40th anniversary of Project SHARE, with over $84M in assistance since 1985.
Nov 03	Equity units financing	Neutral	-0.5%	Pricing of 35M Series A Equity Units to refinance notes and debt.

Pattern Detected

Recent Georgia Power/Southern Company updates are generally constructive (infrastructure, customer programs, financing), but price reactions have been mixed, with several positive operational or community announcements followed by mild declines.

Recent Company History

Over the past months, Southern Company’s Georgia Power subsidiary highlighted grid expansion, customer rate stability, and community outreach. On Nov 3, a $1.75 billion Equity Units offering was priced to refinance debt. Subsequent releases on transmission projects, steady Alabama Power rates through 2027, customer engagement with the Falcons, and the 40th anniversary of Project SHARE all underscored growth, reliability and social initiatives. Today’s agreement on affordability and future capacity fits this theme of preparing for rising demand while emphasizing customer impacts.

Market Pulse Summary

This announcement details a stipulated agreement designed to pair projected demand growth in Georgia with customer affordability, including estimated savings of about $102 per year per typical household and at least $556 million per year in incremental revenue from large-load customers. It outlines plans for about 9,900 MW of new capacity across gas, storage and PPAs. Investors may watch Georgia PSC decisions, execution on large-load projects, and future base rate proceedings for confirmation of these benefits.

Key Terms

megawatts technical

"key milestone in the certification proceeding for approximately 9,900 megawatts (MW) of new resources"

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.

battery energy storage systems technical

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

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.

AI-generated analysis. Not financial advice.

Georgia PSC scheduled to vote on agreement this month to deliver estimated savings of approximately $102 per year for the typical residential customer

ATLANTA, Dec. 10, 2025 /PRNewswire/ -- Good news for Georgia families and businesses: Georgia Power has reached an agreement with the Public Interest Advocacy (PIA) Staff of the Georgia Public Service Commission (PSC) that, if approved, will help lower energy costs—all while meeting growing electricity demand across the state. The company announced today it has reached the stipulated agreement with the PIA Staff, which is designed to allow the company to meet the projected rapidly increasing demand for electricity in the state while also keeping costs low for customers. The stipulated agreement marks a key milestone in the certification proceeding for approximately 9,900 megawatts (MW) of new resources that have been under review by the Georgia PSC since July. Read more here.

The stipulated agreement would allow the company to proceed with procuring diverse, cost-effective resources, most of which were procured through a competitive bid process. Importantly, the agreement notes that, when the company files its next base rate case in 2028, it would do so in a manner that ensures incremental revenue from large-load customers of at least $556 million per year will put downward pressure on rates of at least $8.50 per month (or approximately $102 per year) for the typical residential customer using 1,000 kilowatt-hours per month. This significant savings for Georgia Power customers reinforces 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.

"We know every dollar counts. This plan means more money stays in your pocket while we power Georgia's future," said Kim Greene, chairman, president and CEO of Georgia Power. "Unlike any other market in the country, we're doing things differently here in Georgia to capture and serve this projected unprecedented growth. This stipulated agreement helps ensure we leverage Georgia's growth in a way that lowers costs for customers. Large energy users are paying more so families and small businesses can pay less, and that's a great result for Georgians."

Georgia continues to grow and experience an increased demand for electricity, driven by a strong economy and robust economic development activities. This stipulated agreement showcases how large energy users such as data centers are helping keep costs lower for all customers and supporting infrastructure investments that benefit the state's entire electric grid. If approved by the Georgia PSC, the stipulated agreement will allow the company to proceed with 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.

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.

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 the potential approval of the stipulated agreement and expected benefits thereof. 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.

View original content:https://www.prnewswire.com/news-releases/stipulated-agreement-reached-to-help-keep-electricity-affordable-and-meet-future-energy-demand-in-georgia-302637924.html

SOURCE Georgia Power

FAQ

What did Georgia Power (SO) agree to on December 10, 2025?

Georgia Power reached a stipulated agreement with PSC staff to approve procurement of ~9,900 MW of new resources and deliver customer savings.

How much will the agreement save the typical Georgia Power (SO) residential customer?

The agreement projects about $8.50/month (~$102/year) savings for a 1,000 kWh/month customer.

What generation and storage capacity does the Georgia Power (SO) plan include?

Planned additions include >3,600 MW combined-cycle gas, >3,000 MW BESS, 350 MW solar+BESS, and >2,800 MW PPAs.

When will the Georgia PSC vote on the stipulated agreement for Georgia Power (SO)?

The Georgia PSC was scheduled to vote on the stipulated agreement in December 2025.

How does large-load growth affect Georgia Power (SO) customer rates?

Large-load customers are expected to contribute incremental revenue (estimated $556 million/year) that helps lower residential rates.

Will Georgia Power (SO) change rates immediately after the agreement?

Changes depend on Georgia PSC approval; the company will file its next base rate case in 2028 to reflect impacts.