Georgia Power announced a proposed agreement Monday that would prevent the utility from raising base rates for the next three years. The deal, struck with the state Public Service Commission’s (PSC) Advocacy Staff, hinges on approval from the full five-member PSC and would effectively cancel the rate case Georgia Power planned to submit by July 1st.

This announcement comes after repeated rate increases over the past six years, drawing criticism from consumer watchdog groups and environmental advocates. Just this year, the state Senate considered legislation to prevent the company from passing on electricity costs associated with the booming data center industry to consumers, though the bill ultimately stalled. “This stipulated agreement helps balance the affordability needs of our customers while ensuring Georgia Power remains equipped to continue its support of our state’s incredible growth,” said Georgia Power spokesman Jacob Hawkins.

However, the Southern Environmental Law Center (SELC) is raising concerns about a provision in the agreement that exempts “reasonable and prudent” costs incurred from storm damage from the rate freeze. Jennifer Whitfield, a senior attorney with SELC, specifically highlighted the significant damage caused by Hurricane Helene last September. Whitfield also criticized the PSC for waiving public hearings typically held after a rate case filing, which would have addressed crucial issues such as storm damage costs and the growing power demands of data centers.

The SELC predicts that these rising costs will ultimately lead to higher bills for residential and small business customers as early as next May. “Commission staff has given away our hard-fought relief from data centers,” Whitfield stated. “Make no mistake: Bills for residential and small business customers will rise under this agreement.” The proposed agreement would allow the PSC to consider any storm damage costs separately.

The commission is scheduled to vote on the agreement by July 1st. If the agreement is not approved, Georgia Power will proceed with its original rate case.