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Public Service Commission Reform

Background

 

The Georgia Public Service Commission is broken. As it currently exists and functions, it does not serve in the best interests of the citizens and utility customers it is supposed to serve. Fortunately, Georgians will soon have an opportunity to make their voices heard in demanding needed reforms. First, most probably need to understand a little about what the Public Service Commission (PSC) does and how it impacts their lives. The short answer is, this is the board ultimately responsible for the dramatic increase in your power bills over the past decade or two because it is the PSC, not GA Power or other utilities, that determines what rates can ultimately be set at. This is how the official PSC website explains the commission’s role:

 

The Georgia Public Service Commission has exclusive power to decide what are fair and reasonable rates for services under its jurisdiction. It must balance Georgia citizens' need for reliable services and reasonable rates with the need for utilities to earn a reasonable return on investment. The Commission protects consumers' interests while abiding by legal standards in setting rates. All matters scheduled for public hearing are heard by the Commissioners or in special cases, by an appointed hearing officer in open session.

In regulating rates, the Commission does not guarantee profits to service providers. It is the company's responsibility to make prudent, sound business decisions to produce earnings.[1]

 

So all of those rate increases and new fees imposed by Georgia Power had to be approved by the PSC first. Under an effective regulatory regime, this would be good because it would prevent predatory practices by unchecked utility giants. There are several layers as to why it does not function this way in practice, especially as it relates to Georgia Power. We are going to try to explain them as simply as possible but we encourage everyone to read some of the more detailed explanations provided in the sources.

First, Georgia Power is the only investor owned power provider in the state and therefore the only electric company whose rates are set by the PSC.[2] What this means in practice is that Georgia Power does not have to compete for the attention of the commission, in setting reasonable rates, or in making “prudent, sound business decisions”. Second, the terms of PSC members are for six years which makes voter input regarding performance infrequent. Additionally, members often resign before their term is up allowing the Governor to appoint a replacement which gives that new member an incumbent advantage in the next election. Third none of the current PSC members are customers of Georgia Power meaning their decisions do not affect their own rates. Fourth, in the name of cutting costs during the Great Recession, Georgia first defunded and then abolished the state’s Consumer Utility Counsel (CUC) which was the body that solely represented the interests of small ratepayers in front of the PSC[3]. Without the CUC, regular customers do not have an effective voice before the PSC. Finally, all of the members of the PSC have received campaign donations from Georgia Power’s parent company (Southern Company), Southern Company lobbyists, and/or lawyers from the firm that represents it (Troutman Pepper Locke LLP Georgia PAC, Inc.). The two incumbents running in the 2025 PSC election, Tim Echols (District 2) and Fitz Johnson (District 3), have received campaign donations totaling $63,750[4] and $54,850[5] respectively from Southern Company and its representatives or attorneys. That means that at a hearing about whether or not Georgia Power will be allowed to pass on costs to customers, the people it must convince 1) are not impacted by the increases and 2) have received money from those asking them to allow the increases. How can anyone expect PSC members to “decide what are fair and reasonable rates for services” when those decisions do not impact them and they receive money from company seeking to increase rates?

            This ethically questionable structure and relationship does not complete the story though. The primary specific reason behind the dramatic increase in rates and fees charged by Georgia Power, and approved by the PSC, makes a joke of a key part of the intended purpose of the PSC: to ensure it is “the company's responsibility to make prudent, sound business decisions to produce earnings”. The key factor here is the story of Plant Vogtle. Again, the specifics of this are beyond the scope of this paper and have been thoroughly documented elsewhere. For our purposes, it is sufficient to say that:

- The construction of reactors 3 and 4 at Plant Vogtle was unnecessary to meet the state’s power needs[6];

- The poor planning, management, and oversight of the entire project resulted in delays and cost overruns that made the project far more expensive than what was originally projected[7];

- The profit/investment structure of Georgia Power incentivized the company reinvest profits into continuing expansion which allowed the company to pass costs on to consumers, and actually increase its total profits while failing to meet construction timeline and cost expectations[8];

- Every step of this process has been approved by the Public Service Commission[9].

 

Georgia Power consistently made imprudent and unsound business decisions and yet the PSC continued to allow the company to pass those costs on to customers in a way that actually increased the company’s profits despite its repeated failure to meet promised deadlines and cost expectations. This is why we are calling for reform of the Public Service Commission.


When and How to Seek PSC Reform

 

            Fortunately, Georgians will soon have an opportunity to seek some of the reforms needed to make the PSC serve in the best interests of citizens and customers instead for the profits of Georgia Power. The seats for Districts 2 and 3 are both up for election in 2025 (primaries are June 17th and the general election is November 4th. It is critical for voters to know that the entire state gets to vote in each district so you do not have to live in either district to vote, in fact, you can vote for both races no matter where you are registered in the state. Turnout for these elections is typically under 10% so this is truly a case where every additional vote makes a difference. In our call to action, we will encourage voters to - support candidates during this election whose campaigns are not funded by Georgia Power; and call for accountability for current PSC members who have accepted money from Georgia Power and have not upheld the stated purpose of the PSC. The best way for a voter to hold an incumbent accountable is to vote them out of office. Ultimately, some of the necessary reforms will require legislative action. We encourage voters to inquire as to your state representatives’ positions on these issues and encourage them to support the necessary reforms in the next legislative session which will begin in January 2026.

 

Call to Action

 

            In order to achieve the reforms necessary to make the Georgia Public Service Commission, we call on current PSC candidates, state representatives and senators, and voters to:

 

Candidates for PSC: 

- Should commit NOT to vote to approve continued rate increases passing along cost overruns so that GA Power can continue generate maximum revenue

- Should commit NOT to allow GA Power to continue to expand infrastructure beyond necessary capacity to maximize investments and profits

- Commit to NOT accept campaign donations from GA Power, Southern Company, or their attorneys or lobbyists

 

State Legislators: 

- Should sponsor and support legislation reforming the laws that govern power infrastructure regulation to strengthen the PSC's ability to effectively regulate GA Power in the best interests of customers rather than the company and shareholders

- Call for reform of PSC requiring all PSC candidates to be customers of the for profit utilities they regulate

- Reduce the terms of PSC members to 4 years

- Reestablish and fully fund the Consumer Utility Council

 

Voters: 

- In June 17, 2025 primary and Nov 4, 2025 general election for District 2 & 3 PSC seats, insist candidates commit to the conditions above and vote only for those that do

- Contact state legislators calling on them to support reforms listed above in the 2026 legislative session

- In the 2026 election cycle, support candidates who adopt these proposed reforms as part of their platform and refuse to support those who do not.




Local Blue provides these materials for educational purposes only. These are not campaign materials and do not constitute strategic or messaging advice.

 

Commentaires

Local Blue provides these materials for educational purposes only. These are not campaign materials and do not constitute strategic or messaging advice. [Read Full Disclaimer] Policy Research Disclaimer Columbia County’s Local Blue Collaboration (Local Blue) is a 527 political organization dedicated to increasing Democratic engagement and voter participation. The policy research, reports, and materials provided by Local Blue are for informational and educational purposes only. These materials do not constitute campaign strategy, messaging, or political advice for any individual candidate or campaign. Local Blue does not coordinate with candidates or their committees in the development or distribution of policy research. All research and materials are publicly available and intended to inform voters, community members, and potential candidates about key issues affecting Columbia County and Georgia. Candidates and campaigns are responsible for developing their own positions and messaging based on their perspectives and priorities. By accessing and using these materials, individuals acknowledge that Local Blue is not providing direct campaign consultation, strategic advice, or tailored messaging assistance.

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