Georgia Power to file early fuel rate reduction
ATLANTA, Oct. 16, 2012
ATLANTA, Oct.16, 2012 /PRNewswire/ --Georgia Power today advised the Georgia
Public Service Commission (PSC) of its intention to file a fuel rate reduction
on November 1. If approved, the new, lower rates would begin January 1, 2013.
The company is voluntarily triggering the Interim Fuel Rider (IFR) provision,
which requires the company to adjust rates if the balance of its fuel accounts
is significantly over or under expected targets.
Fuel rates were reduced 19 percent on June 1 of this year. The continued drop
in fuel costs is primarily driven by lower natural gas prices due to increased
natural gas supplies. Other contributing factors were lower demand for
electricity, resulting from the milder than normal summer weather.
The $567 million June reduction brought savings of approximately $8 or 6
percent on the total monthly bill for a typical residential customer averaging
1,000 kilowatt-hours (kWh). Working with the PSC, the company was able to
implement that decrease a month earlier than scheduled to help reduce summer
The precise amount of the proposed rate decrease and expected impacts on
customer bills have not yet been determined, but will be included in the
November 1 filing.
Fuel rates are set separately from base rates. Georgia law prohibits the
company from earning a profit on fuel, while allowing recovery of all
prudently incurred fuel costs.
Under the terms of the IFR adjustment mechanism, the PSC will have 30 days to
review the company's November 1 filing.
Georgia Power is the largest subsidiary of Southern Company, one of the
nation's largest generators of electricity. The company is an investor-owned,
tax-paying utility with rates below the national average. Georgia Power
serves 2.4 million customers in all but four of Georgia's 159 counties.
SOURCE Georgia Power
Contact: Media Relations, +1-404-506-7676, or +1-800-282-1696
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