Summary
Southern Company's subsidiary, Georgia Power, has entered into a settlement agreement with the Georgia Public Service Commission (PSC) Public Interest Advocacy Staff that, if approved by the PSC, will extend the company's alternate rate plan (ARP) through December 31, 2028. This agreement defers rate adjustments for 2026, 2027, and 2028, with storm damage costs to be addressed in a separate regulatory proceeding. The settlement maintains Georgia Power's retail return on equity (ROE) set point at 10.50% and equity ratio at 56%, with a continuing ROE range of 9.50% to 11.90%. Key modifications include the separate recovery of storm damage costs incurred through 2025, the continued amortization of regulatory assets, liabilities, and deferred tax credits, and a change in depreciation/amortization periods for certain generating assets to 13 years. Earnings above the ROE range will continue to be shared with customers, while shortfalls may trigger a request for an Interim Cost Recovery tariff.
Key Highlights
- 1Georgia Power and PSC Advocacy Staff reached a settlement to extend the alternate rate plan (ARP) through December 31, 2028.
- 2Base rates will not be adjusted in 2026-2028, except for storm damage costs incurred through 2025, to be recovered in a separate proceeding.
- 3Retail ROE set point remains at 10.50%, with an equity ratio of 56% and an ROE range of 9.50%-11.90%.
- 4Earnings above the ROE range will be shared: 40% to regulatory assets, 40% to customers, and 20% retained by Georgia Power.
- 5Deferred Investment Tax Credits (ITCs) and Production Tax Credits (PTCs) will be amortized over the ARP Extension Period.
- 6Depreciation/amortization period for certain generating plants and retired plant net book values will be 13 years starting January 1, 2026.
- 7The Georgia PSC is scheduled to vote on the settlement by July 1, 2025; approval is not guaranteed and terms may change.