Rising utility costs and debates over energy policy amid surging data center demand are becoming increasingly prominent public flashpoints in the United States. Tuesday’s Georgia Public Service Commission (PSC) elections offer a striking example: Democrats Alicia M. Johnson and Peter Hubbard scored decisive victories over Republican incumbents Tim Echols and Fitz Johnson. While this outcome puts Georgia’s energy policy in the spotlight, it may also signal far-reaching changes for utility regulation and affordability well beyond state lines.
Once the new commissioners take office in Georgia in January, Democrats will control two of the five PSC seats. However, due to a voter lawsuit, Peter Hubbard’s seat will be up for election again in 2026. This and another open seat in 2026 could make Democratic control of the commission a real possibility in the near future. Although Republicans will maintain a 3–2 majority until at least the next election cycle, the fact that Democratic challengers ousted incumbents with more than 60% of the vote signals a significant shift in voter sentiment.
This shake-up comes in a state widely regarded as one of the most utility-friendly regulatory environments in the country. According to FactSet’s Utility Jurisdiction Rankings Report (available to FactSet clients), Georgia ranks among the top utility-friendly jurisdictions in the country.
The change also comes at a critical time, as the state’s largest utility, Southern Company’s Georgia Power, is pursuing an unprecedented buildout of new resources to support surging demand, especially from data centers and industrial growth. See FactSet’s recent analysis of Georgia Power’s IRP (available to FactSet clients) for more details. While a recently approved three-year rate freeze will limit near-term financial impacts on Georgia Power, rate increases will eventually be needed to recover the costs of this investment.
Ultimately, the election points to growing public dissatisfaction with the PSC’s approach, with the most prominent contributor to this animus being simple: utility bill affordability.
Usage, Rates, and Income Have Combined in Recent Years to Erode Affordability
Utility affordability dominated the public discourse in Georgia’s PSC elections, as well as many races nationwide, this cycle. In Georgia, that focus is underscored by its ranking at the very bottom of FactSet’s most recent Utility Affordability Rankings (available to FactSet clients). The report considers average residential costs for electricity and natural gas alongside per capita disposable income, estimating the share of household income required for energy bills in each of the 50 states and the District of Columbia. Visible in the table below, Georgia ranks last for residential utility affordability as of 2024 and is joined by several other states in the Southeast.
As affordability concerns continue to occupy the spotlight heading into the next election cycle, politicians, regulators, and utilities will come under increasing pressure to address these concerns while also attempting to build out the resources needed to serve unprecedented load growth. States with poor affordability metrics, in particular, warrant closer scrutiny as these competing priorities develop. The surprise PSC election results in Georgia may well be a harbinger of a wider electoral backlash led by voters who are simply fed up with rising energy costs.
Be sure to check back in for more Energy Market Insights as the FactSet Energy team delves further into the effects of the shifting regulatory landscape on U.S. power markets.
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