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Georgia voters decry escalating electric bills

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Two Democrats unseat GOP incumbents on utility commission

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Jefferies downgrades the stock of Southern Co ( SO )

By Tim McLaughlin

Nov 5 (Reuters) - Georgia voters on Tuesday night

unseated two Republican utility commissioners over escalating

electricity rates, in what could be an early signal of a

consumer backlash against data centers and Republican President

Donald Trump's aggressive push to develop nuclear power.

The energy needs of AI-fueled data centers are forcing

utility regulators throughout the country to reckon with the

cost of building billions of dollars of infrastructure projects

for new generation and upgraded transmission lines. In some

places, consumers have faced higher rates as demand outpaces

available power supply.

At least one Wall Street firm reacted swiftly to the special

election's outcome, downgrading the stock of the state's largest

utility, Southern Co ( SO ), to a "Hold" rating from a "Buy"

rating.

Analysts at Jefferies called the election outcome a

"resounding Republican loss" and said it boosted the risk

profile of Georgia Power, a unit of Southern Co. ( SO ), and would make

it harder to increase electricity usage rates. Summer electric

bills for Georgia Power customers using 1,000 kilowatts have

increased 41% to nearly $190 per month compared to the summer of

2021, according to a survey of residential customers by the

Georgia Public Service Commission.

Democrats Alicia Johnson and Peter Hubbard easily unseated

Republican incumbent commissioners, each winning more than 60%

of the votes cast. They will take seats on Georgia's Public

Service Commission, which regulates major utilities and sets

electric rates.

Johnson and Hubbard each ran campaigns that championed fair

electric rates and more emphasis on renewable energy.

Electricity rates have increased six times in the past two

years, their online campaign platforms said.

Georgia electric bills partly reflect massive cost overruns

from the construction of the two Vogtle nuclear reactors, which

were about seven years behind schedule and cost about $35

billion. That was more than double the original estimate of $14

billion, according to Georgia regulators.

Patty Durand, director of nonprofit Georgians for Affordable

Energy, called the election a referendum on nuclear power. Last

week, the Trump administration announced an $80 billion deal to

buy nuclear reactors from Westinghouse, the same company that

landed in bankruptcy in 2017 because of cost overruns at the

Georgia nuclear projects.

In a January 2023 report to the Georgia Public Service

Commission, analysts estimated electric customers would pay an

additional $36 billion to $43 billion over the 60-year lifecycle

of the two Vogtle reactors, compared to an alternative gas-fired

fuel source.

"Georgia electric customers are getting electric bills that

look like monthly car payments," Durand said.