Southern Company's Georgia Power Freezes Base Rates Through 2028

The Southern Company’s SO subsidiary, Georgia Power, recently announced the approval of the stable and predictable base rates by the Georgia Public Service Commission (“PSC”) through the end of 2028. The decision stems from a stipulated agreement between Georgia Power and the PSC's Public Interest Advocacy Staff and extends an alternate rate plan initially approved in 2022.

Supporting Growth Without Compromising Affordability

Georgia's economy is booming, spurring a significant increase in electricity demand. To meet this rising need while keeping energy costs affordable, Georgia Power has collaborated closely with state and local officials, business leaders and community stakeholders. This collaboration has resulted in proactive regulatory measures, including the 2023 Integrated Resource Plan Update and revised rules to better manage the load impacts from large-scale energy users. These steps are designed to balance reliability, resiliency and fairness across Georgia Power’s 2.8 million customer base.

Storm Costs Addressed Separately

While base rates are set to remain unchanged, costs related to storm recovery, such as those from Hurricane Helene, will be handled in a separate regulatory proceeding expected in the first half of 2026. This ensures that storm-related expenses are managed transparently, without impacting the stability of base rates for customers.

Prudent Decision After a Series of Rate Hikes

The rate freeze follows five rate increases since 2023 that have pushed the average customer’s monthly bill up by $43, a rise of more than 20%. With energy prices surging across the United States, Georgia PSC encouraged the staff and Georgia Power to reach an agreement to hold base rates steady, marking a clear win for ratepayers.

Vote of Confidence in Georgia’s Energy Future

The CEO of the company emphasized the importance of maintaining reliable and affordable energy, citing the rate freeze as a testament to the state’s robust and cooperative regulatory framework. He further reflected upon the mutual benefits of economic growth and customer affordability, stating that affordable rates among customers will help ensure economic growth in the state of Georgia.

SO’s Zacks Rank & Key Picks

The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately nine million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like National Grid plc NGG, Engie SA ENGIY and CenterPoint Energy, Inc. CNP. While National Grid and Engie currently sport a Zacks Rank #1 (Strong Buy) each, CenterPoint Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

National Grid is an international energy delivery business whose principal activities are in the regulated electricity and gas industries. The Zacks Consensus Estimate for NGG's 2025 earnings indicates 42.02% year-over-year growth.

Engieengages in the power, natural gas and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear and Others segments. The Zacks Consensus Estimate for ENGIY's 2025 earnings indicates 24.58% year-over-year growth.

Houston, TX-based CenterPoint Energy is a domestic energy delivery company that provides electric transmission and distribution, power generation and natural gas distribution operations. The Zacks Consensus Estimate for CNP's 2025 earnings indicates 8.02% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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