On May 28, the Georgia Public Service Commission voted to approve a settlement that lowers what Georgia Power can charge customers for fuel costs and storm recovery. Most residential customers will see about $4 less per month starting June 1. That’s the headline. But the agreement also leaves open a significant accountability question — whether large industrial customers, including data centers, are paying their fair share of the costs they create. That investigation is just beginning.
What the PSC approved
The Georgia Public Service Commission is the state agency that sets the rules for how Georgia Power — the electric utility serving most of the state — can charge customers. Periodically, Georgia Power requests permission to recover certain costs from customers: things like the fuel used to generate electricity, or the expense of repairing damage after a major storm.
This past week, the PSC voted to approve a stipulated agreement — a negotiated deal — between Georgia Power and the PSC’s own Public Interest Advocacy staff. That staff exists specifically to represent customers in these proceedings.
The agreement covers two categories of costs: fuel charges (what Georgia Power spent to generate electricity, including natural gas and other fuels) and storm damage restoration (what it cost to repair the grid after recent storms).
What changes on your bill starting June 1
For most residential Georgia Power customers, the agreement means a savings of approximately $4 per month — about $50 per year — beginning with the June billing cycle. Across all Georgia Power customers, total annual savings are projected at approximately $285 million.
Beyond the headline savings, the agreement includes three other important consumer protections:
Storm cost recovery cut by nearly 60%. Georgia Power originally sought to recover a larger amount from customers for storm cleanup. Under the agreement, that amount is reduced by nearly 60%. Customers will still pay something toward storm restoration — but significantly less than what the utility originally requested.
A higher bar before Georgia Power can profit on storm repair. The agreement raises the threshold before the company can earn a return on storm repair work. This is designed to discourage padding storm costs.
New limits on natural gas hedging. Georgia Power had been locking in natural gas prices in advance — a practice called hedging. The agreement caps how much gas the company can purchase this way. Hedging can protect against price spikes, but it can also lock customers into prices that turn out to be unfavorable. The new cap gives customers some protection against that risk.
What was proposed but not approved
The vote was not unanimous. Two commissioners proposed amendments that would have gone further.
One amendment would have directed an investigation into Georgia Power’s fuel transportation costs, its natural gas hedging practices, and its decision to operate certain coal plants. A separate motion would have withheld approximately $15.2 million — representing 10% of disputed coal dispatch costs — unless Georgia Power could provide justification for its coal use.
Both amendments were voted down 3-2. They did not pass.
Under Georgia law, the PSC’s ability to reduce what Georgia Power charges for fuel is limited. The utility is generally entitled to recover fuel costs, and the commission can only reject them if the spending was illegal or obviously unjustified. That legal framework shaped the outcome of Thursday’s vote.
The unresolved question: data centers and cost allocation
The agreement delivers real savings — but it leaves a significant question on the table.
During the proceedings, attorneys and policy staff raised a concern that has been growing as Georgia’s data center industry expands: large industrial customers, including data centers, may not be paying for all the costs they create.
Here’s how it works. When a large customer — say, a data center running thousands of servers — uses enormous amounts of electricity, that drives up demand for fuel across the grid. Higher demand means higher fuel costs per unit of energy, for every customer. But under the current system, that extra cost burden falls on residential customers and small businesses, not on the large customers who drove it up.
The PSC’s own Public Interest Advocacy staff found that large industrial customers drive up average fuel costs for other customers by approximately 5 to 11 percent per month. An attorney representing environmental intervenors in the proceedings noted that data centers pay their own direct fuel costs — but no offset is provided for the rising costs they impose on everyone else.
This matters now more than ever. In December 2025, the PSC approved a $16 billion construction plan to build new power resources, primarily to serve data centers and other large industrial customers. More growth in large-load customers means more pressure on the cost allocation question.
The new investigation: what to watch
The commission agreed to open a separate investigation into how fuel costs are allocated between large industrial customers and residential and small business ratepayers. That proceeding is expected to get underway later this year and will include all interested parties.
The investigation is significant. If it finds that the current cost allocation is unfair — and the existing staff testimony suggests it might — the commission could require changes that would shift costs away from households and small businesses and toward the industrial customers who are driving them up.
But that process takes time. In the meantime, the current system remains in place.
What GCVEF is tracking
GCVEF will be watching three things as this moves forward:
- The fuel cost allocation investigation. We will track when it begins, who participates, and what it finds. We’ll publish plain-language updates as the proceeding develops.
- Whether the June 1 savings show up on bills as expected. If customers don’t see the reduction, or if it’s smaller than projected, that’s worth knowing. We’ll be collecting questions and feedback.
- The broader data center buildout. The $16 billion construction plan approved in December is still unfolding. How those costs are structured — and who ultimately pays — will shape Georgia Power bills for years.
Utility regulation may sound technical. Your monthly power bill is not. GCVEF publishes plain-language explainers on PSC proceedings so Georgia families can follow what’s happening — and why it matters.
Follow GCVEF at gcvedfund.org for updates on the data center cost investigation and other PSC proceedings.