AUGUSTA, Ga. (WRDW/WAGT) - Georgia Power is preparing to raise rates yet again, with a 3.5% hike taking effect next Wednesday.

The utility says the money will be used to pay for grid improvements, investments in cleaner energy and customer service upgrades.

The adjustment equates to a $5.85 increase on each monthly bill for the average resident using 1,000 kilowatt hours of energy, according to a Georgia Power spokesperson.

The Georgia Public Service Commission approved the rate increase in mid-December, following similar rate increases in 2023 and 2024.

These annual rate increases were orchestrated as part of a 2022 agreement between the commission and the utility company.

“No one wants a rate increase, but in order to keep the grid going, we have to fund it,” said Commissioner Tim Echols.

Echols said the board negotiated the rate increases to occur annually rather than all at once in 2022, to help limit the impact on Georgia consumers.

He said the state approved 60% of what Georgia Power was seeking in its proposed rate adjustments.

Echols commiserated with customers experiencing higher energy bills.

“We’ve had too many rate increases over the last three years,” Echols said.

When Plant Vogtle Unit 4 went online earlier this year, it sparked a 5% increase.

That followed an increase when Unit 3 went online.

And in summer 2023, there was an increase in response to higher fuel costs.

Looking ahead, the company could seek another rate hike to pay for damage from Hurricane Helene, the most destructive storm in company history.

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Georgia Power is expected to make $306 million in additional revenue from the January rate hike, down from the originally projected $400 million estimate in 2022, according to a state spokesperson.

A Georgia Power spokesperson said the company is committed to keeping utility bills affordable and said the average Georgia Power customer pays 15% less than the national average on their energy bills.

“As much as you hate having your power bill going up a few dollars, you would really hate rolling blackouts,” said Echols, who said maintaining a reliable power system is his top priority as a commissioner.

The rate increase comes as Southern Company, Georgia Power’s parent company, is reporting notable profits.

In an October earnings report, Southern Company reported earnings of $3.9 billion, compared with $3.1 billion for the same period in 2023.

The company said those earnings were partially offset by increased expenses and taxes.

A Georgia Power spokesperson also recognized the profit earnings by Southern Company, attributing the “high performance throughout the year” to weather and growth across the system, they said.

“Our parent company, Southern Company, has reported high performance throughout this year, largely due to weather and growth across our system,” the Georgia Power spokesperson said.

Said Echols: “I feel like the investments have made Georgia a more reliable place to live and to work.”

On Tuesday, a Georgia Power spokesperson pointed to customer assistance programs for those struggling to keep up with their energy bills.

Earlier this year, the utility company expanded an income-qualified discount program for those with limited incomes and in need of financial resources.

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