Georgia Power files request for 7 percent fuel rate reduction
ATLANTA, Nov. 1, 2012
ATLANTA, Nov. 1, 2012 /PRNewswire/ --Georgia Power today filed a request with
the Georgia Public Service Commission (PSC) to reduce fuel rates by
approximately 7 percent and total annual billings by approximately $122
That equates to a savings of approximately $1.82, or 1.6 percent, on the total
monthly bill of a typical residential customer averaging 1,000 kilowatt-hours.
The new, lower rates would begin Jan. 1, 2013.
Last month, the company announced it would voluntarily trigger the Interim
Fuel Rider (IFR) early. The IFR requires the company to adjust rates if the
balance of its fuel accounts is significantly over- or under-recovered and was
approved by the commission in June.
The proposed decrease would offset most of three previously scheduled
increases that will take effect at the same time. Of the increases, one is due
to new, clean-burning, natural gas combined-cycle facilities at Plant
McDonough-Atkinson in Atlanta; another is related to the company's demand-side
management (DSM) programs; and the third is due to a Nuclear Construction Cost
Recovery (NCCR) tariff increase.
The three increases contribute to long-term rate stability and cost savings.
The McDonough-Atkinson and DSM tariff changes will raise the typical
residential customer bill by about $1.05 and $0.36, respectively, per month,
while the increase to the NCCR will add about $0.85 per month. If the fuel
reduction is applied against these increases, a typical residential customer
should see a net increase of just 44 cents per month.
Fuel rates were reduced 19 percent on June 1 of this year. The continued drop
in fuel costs was partially driven by lower natural gas prices as a result of
increased natural gas supplies. The company has been able to expand its use of
the low-cost gas with the addition of its new, highly efficient natural gas
units at Plant McDonough-Atkinson. Lower demand for electricity resulting from
the milder-than-normal summer weather was also a contributing factor.
The $567 million June reduction brought savings of approximately $8, or 6
percent, on the total monthly bill for a typical residential customer. Working
with the PSC, the company was able to implement that decrease a month earlier
than scheduled to help reduce summer power bills.
"Our state-of-the-art natural gas facility at Plant McDonough-Atkinson is
already bringing tremendous value to all customers through lower fuel costs,"
said Georgia Power President and CEO Paul Bowers. "Investments like this, plus
new nuclear, 21st century coal, renewables and energy efficiency, are further
examples of how the Georgia Public Service Commission's long-term planning
process benefits all Georgians by ensuring clean, safe, reliable energy at
costs below the national average."
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 has 30 days to review
the company's 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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