Are you digging a little bit deeper into your pockets to pay your firm’s energy bills lately?
You’re certainly not alone. Last May, Georgia’s utility regulators approved a 12 percent rate hike over the next three years for Georgia Power customers. And again in December, Georgia Power appealed to the regulators for even more money to help fund nuclear energy expansion in the region. It’s all amounting to higher energy bills – and they’re only likely to continue to increase over time.
Nobody likes to pay more for core services like energy – especially when these overhead expenditures can significantly impact a firm’s bottom line. The good news is that there are measures businesses can take to make their properties more energy efficient to offset some – or all – of these cost increases. In this post, we’ll cover the factors contributing to the Georgia Power rate increase and what you can do to manage it.
Understanding the Georgia Power Rate Increase
The Georgia Power rate increase 2023 was largely made to offset rising fuel costs. Georgia Power claimed back in May 2023 that it was likely to end up about $4.5 billion in the red, much of it due to rising fuel costs needed to power its energy plants. And this was even after the energy regulators approved a 15 percent rate hike in January 2022. In an attempt to meet these rising fuel costs, the 12 percent rate hike passed in May 2023 will generate about $6.6 billion.
The other proposed rate hike is directly tied to nuclear expansion, which we’ll cover more of in the next section.
Factors Contributing to the Rate Increase
Here’s a look at the reasons why your utility bills have likely gone up:
Volatile Project Costs
To curb carbon emissions and meet the United States’ goal of tripling nuclear energy capacity by 2050, Georgia Power is looking to cover an additional $10 billion in construction costs for its Plant Vogtle nuclear project. According to one proposal, consumers would pay up to $7.6 million as part of a rate increase.
Fuel Cost Dynamics
As we noted earlier in this post, fuel costs are rising – and it’s thereby becoming more expensive to operate many of Georgia Power’s utility plants. As a result, Georgia’s energy regulators approved a 12 percent rate hike in the spring of 2023.
Navigating the Rate Hike: What Businesses Can Do
So what can you do to help navigate through the Georgia Power rate hike? Keep in mind that saving energy isn’t usually about implementing one big strategy, but lots of small things that all add up. Here’s a look at some ways to keep your energy costs down and your expenditures in check:
Conduct an Energy Audit
An energy audit consists of carefully analyzing and assessing how your facility uses energy and how to improve its energy efficiency. When firms are better able to understand how they’re using their energy, they can make improvements in problem areas. After implementing solutions identified via an energy audit, it’s not uncommon for many businesses to reduce their energy usage anywhere from 20 to 25 percent.
Assess Energy Usage
A thorough energy audit will help assess energy usage and identify areas where improvements can be made. An energy audit may also be done in coordination with a utility bill audit, which aims to help a business understand how much energy it’s using – and when it’s using it. A utility bill audit can also help identify any billing irregularities and help auditors negotiate a lower overall rate with utility companies.
Consider Upgrading Older Equipment
- Smart Thermostats: The benefits of smart thermostats are far-reaching. When programmed properly, they can facilitate savings of anywhere from 8 to 10 percent on utility bills.
- Energy-Efficient HVAC Equipment: If you’re in the market to replace or upgrade your HVAC equipment, do so with Energy Star equipment. Energy Star equipment is proven to perform more efficiently and help facilitate maximum energy savings.
- Motion Sensor Lighting: You’ve heard the term “why waste” as it refers to turning off the lights when you leave a room, yet many people still don’t flip the switch. Motion sensor lighting can do it for you and help conserve energy by only illuminating areas of a building where people are actively present.
- LED Lighting: If you already haven’t made the switch from incandescent bulbs to LED lighting, do it now. LED lights are long-lasting, durable, energy-efficient, and they emit less heat compared to incandescent bulbs.
Consider Alternative Energy Sources
Want to go bigger with your long-term energy savings? While investing in alternative energy is more of an upfront investment, the payoff can be worth it, especially if you plan to be in your current building for many years. What’s more, is that many alternative energy solutions will still power your facility in the event of a power outage. In some areas, you may even be able to sell excessive energy that your solutions produced back to the power company. Wind and solar energy are two popular alternative energy solutions.
Contact Green Line Rates Today
For more information on the Georgia Power rate increase and potential future increases, contact Georgia Power directly. If you want to explore options for ways to reduce your energy bill and manage the rate increase, contact Green Line Rates today. We specialize in energy audits and utility bill audit services to help your firm save money and your business improve its bottom line. Contact us today for more information and to get started.