Groups say regulators broke state rules with praise of Georgia Power rate deal

Miami Herald

a day ago

Last month, Georgia Power and the Public Service Commission's public interest staff announced they had struck a preliminary deal to keep the company's current base rates steady for the next three years.
Speaking at a May 21 news conference at the state Capitol, where he was flanked by Gov. Brian Kemp, PSC Chairman Jason Shaw touted the agreement as a "very big deal for our state," adding it was "good for Georgians."
Now, some groups claim those remarks - and other comments commissioners made before formal hearings to consider the deal - violated state rules, and they argue three of the PSC's five members should recuse themselves from an upcoming vote.
On Friday, four consumer advocacy and environmental organizations - Georgians for Affordable Energy, Center for a Sustainable Coast, Georgia Conservation Voters Education Fund and Georgia WAND - lodged a complaint about the saga with the PSC.
The groups argue Shaw's recent remarks, along with statements by Vice Chairman Tim Echols and the actions of Commissioner Lauren "Bubba" McDonald, are evidence of "prejudgment" and "a lack of open-mindedness that eliminates public trust."
The complaint requests that all three commissioners recuse themselves from an upcoming vote on the proposal to keep current rates in place. They also ask the commission to reject the rate "freeze" and instead hold "rate case" hearings as planned this summer. If the commission moves forward as planned with hearings on the rate freeze, the groups ask that an impartial hearing officer be appointed to decide the case.
Shaw declined to weigh in on the complaint. Echols and McDonald did not immediately respond to requests for comment.
Patty Durand, a former Democratic PSC candidate who now serves as director of one of the groups behind the complaint - Georgians for Affordable Energy - called the rate freeze a "catastrophe for Georgia Power customers."
"It freezes rates for three years but does not freeze spending," Durand said in a statement. "The Georgia PSC must hold a rate case proceeding this fall so Georgia Power customers can see what is being spent in their name, not in 2028 when it is too late."
Georgia Power has said the agreement balances the "affordability needs of our customers while ensuring Georgia Power remains equipped to continue its support of our state's incredible growth."
The utility typically files a request every three years for the PSC to adjust its rates and was scheduled to submit a new one this summer. If the tentative deal is approved, it would take any imminent increase to base rates off the table.
Still, customers' bills could rise again before long.
As part of the agreement, the company will ask the PSC next year to allow it to collect storm-related costs from customers. In 2026, Georgia Power is also expected to make a separate request to pass customers the bill for the cost of fuel used in its coal, gas and nuclear power plants.
The proposed move to keep rates steady is unusual but not unprecedented. In 1995 and again in 2016, the PSC and Georgia Power reached agreements to keep base rates frozen for three years, according to Tom Krause, the PSC's public information officer.
State rules on PSC responsibilities
The basis for the complaint centers on a portion of the state's rules and regulations dictating PSC procedures and responsibilities.
The groups point to a subsection titled "Opinions of Commissioners," which says the regulators should "reserve" their opinion on matters before the PSC until all facts and evidence are submitted and considered. The rules also state PSC commissioners should "hold no presumption in favor of the position of any party, including the Public Interest Advocacy Staff."
The PSC has not yet held hearings on the agreement between Georgia Power and commission staff, nor has it voted on it. A hearing on the deal is set for June 26, with the commission set to vote on the rate "freeze" on July 1.
But the groups argue the three commissioners effectively endorsed the deal before other interested parties had a chance to weigh in.
The complaint references the May 21 news conference during which Shaw spoke favorably about the "rate freeze." Shaw also said at the event that anyone with concerns about the deal would have a chance to express their reservations in upcoming hearings as part of an "open and transparent process."
McDonald appeared at the news conference alongside Shaw and Kemp but did not comment on the proposed rate freeze. Still, the groups claim the event was held in support of the deal and that commissioners' participation "shows an undeniable bias" that compromises due process.
Comments Echols made in a May 27 article in The Atlanta Journal-Constitution previewing races underway for seats on the PSC were also cited in the complaint. Echols is the only one of the three commissioners named who is currently up for reelection.
In the article, Echols said: "Freezing the rates for three years is the best thing we can do for ratepayers right now, and I have advocated for that incessantly."
Krause, the PSC's spokesperson, declined to comment on the complaint. Krause said the commission will consider the groups' motion at a future meeting but did not specify when.
The groups made no allegations of wrongdoing against Gov. Kemp.
A spokesperson for the governor said in a written statement Tuesday: "The Governor stands by his remarks that the agreement is a good deal for Georgia's consumers struggling with the continued impact of 40-year high Bidenflation, and as the Governor stated at the press conference, it is absurd to suggest otherwise." The statement also said the governor cannot comment on the alleged violation of PSC policies, since it is a pending matter for the PSC.
Pressure over rising bills
The agreement to hold rates steady follows six PSC-approved rate hikes that have taken effect since the start of 2023. All told, the increases have pushed the average Georgia Power residential customer's monthly bill up by about $43, according to data from the company.
Critics of Georgia Power and the commission have also questioned whether the announcement of the rate freeze was timed to coincide with the primary elections for two PSC posts that are now underway.
Early voting in the Democratic and Republican primaries runs through June 13, with Election Day for the primary set for June 17. The general election will be held Nov. 4.
The deal to punt on a rate case this year would allow Echols and Commissioner Fitz Johnson - who is seeking to hold onto the seat Kemp appointed him to in 2021 - to avoid taking a position on anotherpotential rate increase ahead of the November general election.
At last month's news conference at the Capitol, both Shaw and Kemp dismissed the notion that the rate freeze had anything to do with the elections.
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