Once again, we see the Georgia Public Service Commission failing to provide the diligent, transparent oversight of Georgia Power that Georgia residents rightly expect and deserve from their PSC commissioners — all five of whom are Republicans — and only a few of whom were duly elected vs. merely appointed.
To be clear — this so-called “stipulated agreement” between Georgia Power and the Georgia PSC has all the hallmarks of yet another smoke-filled backroom deal the likes of which we’ve seen far too many times before.
In fact, they’ve become all too familiar.
The coziness with which the members of the PSC continue to conduct business with a multibillion-dollar monopoly utility it is charged with regulating is an embarrassment — and an increasingly costly one for Georgia ratepayers.
Openness is missing from the process, and that’s not good for Georgians
Credit: Arvin Temkar/AJC
Credit: Arvin Temkar/AJC
First off, the claim that rates for consumers won’t go up for three years is disingenuous at best and outright misleading at worst. There are carve-outs and exceptions we know little about. That’s to be expected when it was the PSC’s public interest staff who stipulated this questionable, highly suspect move — not the PSC commissioners themselves, although their approval is required.
It is critically important to recognize that key terms of the settlement agreement are subject to change and that any final agreement approved by the Georgia PSC may differ materially from the terms of this original draft. Unfortunately, we apparently won’t be able to observe the deliberations of the PSC commissioners as they weigh the merits of this critical decision.
Why not? One doesn’t have to look far to find out. By stipulating this agreement, Georgia Power avoids having to make a rate case argument that would determine — out in the open — the prudent level of return-on-investment Georgia Power should be allowed to deliver to its corporate parent, Southern Company.
Without a rate case, the public is denied the ability to determine for themselves what level of profits is reasonable vs. excessive. Since the current PSC has authorized Georgia Power to earn among the highest rate of returns in the industry, an open rate case is needed to determine if, in fact, the company is overearning and that the company’s financial returns need to be adjusted via lower rates charged to Georgia consumers.
This lack of transparency serves only to erode trust in this important institution as the current PSC continues to engage in ways that skirt public input by fast-tracking a process that may have led to a better outcome for residential customers. Georgia Power has gone on record that it will be putting downward pressure on consumer energy rates.
Holding them flat is not downward pressure — even if it does happen, which is unlikely.
PSC commissioners should have the interest of ratepayers first and foremost
And what about the massive AI data centers sprouting up all across Georgia? While certainly an important component of positioning Georgia as a high-tech destination, we need to ask if having ratepayers pay to supply power and water to these facilities will be one of those “exceptions” vaguely referenced in the stipulated agreement? We just don’t know.
Credit: Robert Jones
Credit: Robert Jones
These facts are not generally well-understood by the public, who may take yesterday’s surprise announcement as nothing but good news and a sign of much-needed relief.
The reality is, however, that without a public rate case, a better — more equitable — outcome for Georgia residents could not have been reached.
As the commission works toward a decision on the coming integrated rate plan, which is expected to be completed in July, the timing of the recent agreement is also worthy of note.
With early voting in the PSC primary elections underway and candidates emphasizing the six rate increases Georgia Power has instituted over the last two years — all of which were approved by the current PSC — it does cast suspicion on both the current PSC commissioners and Georgia Power.
That’s not in the best interests of Georgia ratepayers.
I’m running to be the Democratic primary candidate for PSC commissioner to change that.
Robert Jones is a former utility executive, state regulatory analyst and senior technology management executive who is running for District-3 Public Service Commissioner for the State of Georgia. Jones resides in the Brookhaven neighborhood of Atlanta.
Editor’s note: Jones is one of four Democratic primary candidates on the ballot for the District 3 PSC seat. The other candidates are Keisha Sean Waites, Peter Hubbard and Daniel Blackman.
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