Georgia Power seeks cost recovery for infrastructure investments

       Georgia Power seeks cost recovery for infrastructure investments

PR Newswire

ATLANTA, June 28, 2013

ATLANTA, June 28, 2013 /PRNewswire/ -- Georgia Power today asked the Georgia
Public Service Commission (PSC) for permission to increase its base rates
approximately $482 million, or 6.1 percent. The request is being made to allow
the company to recover the costs of recent and future investments in
infrastructure –including environmental controls, transmission and
distribution, generation, and smart grid technologies – required in order to
maintain high levels of reliability and superior customer service.

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The proposed change in rates would be effective Jan. 1, 2014.

"We're committed to delivering value to our customers in the form of clean,
safe, reliable electricity at rates below the national average, and we're
committed to being a partner that our customers can depend on day-in,
day-out," said Paul Bowers, president and CEO of Georgia Power. "We will
continue to invest what is required to deliver the world-class value our
customers deserve and expect and to serve Georgia's current and future energy
needs."

If the request is approved, the typical residential customer using 1,000
kilowatt-hours per month would see an increase of about 6.7 percent, or
$7.84.

Georgia Power consistently offers rates that are below the national average.
Over the past 26 years, the company's total retail rate has averaged more than
13 percent below the national average. Since 1990, its base price has
increased by 23 percent, compared to a 76 percent increase for general
inflation. In fact, the company's total retail rate, which includes base rate
and fuel costs, has lagged the rate of inflation for the same time period.

Georgia Power's commitment to delivering value to customers includes:

  oA diverse generation mix consisting of cost-effective options such as
    nuclear, coal, natural gas and renewables – solar, wind and biomass – to
    offer the best long-term, low-cost value to customers.
  oCustomer programs and tools, including energy efficiency programs for both
    residential and commercial customers and new user-friendly tools such as
    My Power Usage, an online tool which allows residential customers to  take
    control of their energy use by tracking their daily energy costs, viewing
    their projected monthly bill and more.
  oReducing emissions to meet federal and state environmental standards.
    Georgia Power currently manages a $5 billion environmental compliance
    construction program. By 2015, the company anticipates reducing nitrogen
    oxide emissions by 85 percent and sulfur dioxide emissions by 95 percent
    from 1990 levels and achieving significant reductions in mercury and
    particulate emissions – reductions which have been achieved while also
    increasing overall generation capacity by 10 percent during that time.
  oReliability and "smart grid technologies," including the recently
    completed installation of digital meters across the state and an
    integrated vegetation management program to help to ensure a stable and
    efficient grid and reliable service for customers.
  oEconomic development activities to grow Georgia's economy.  Since 2010,
    Georgia Power has helped secure nearly 26,000 jobs and more than $6
    billion in new investment for the state.

The PSC will hold public hearings in October and November 2013. A final
decision is expected Dec. 17, 2013.

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.

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking information
based on current expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things, statements
concerning Georgia Power's filing with the Georgia PSC to increase retail base
rates and modify existing base rate tariffs (2013 Rate Case), as well as
statements regarding projected earnings, capital expenditures, impact on
customers, and emissions reductions. Georgia Power cautions that there are
certain factors that could cause actual results to differ materially from the
forward-looking information that has been provided. The reader is cautioned
not to put undue reliance on this forward-looking information, which is not a
guarantee of future performance and is subject to a number of uncertainties
and other factors, many of which are outside the control of Georgia Power;
accordingly, there can be no assurance that such suggested results will be
realized. The following factors, in addition to those discussed in Georgia
Power's Annual Report on Form 10-K for the year ended December 31, 2012, and
subsequent securities filings, could cause actual results to differ materially
from management expectations as suggested by such forward-looking information:
state and federal rate regulations and the impact of pending and future rate
cases and negotiations, including rate actions relating to fuel and other cost
recovery mechanisms and the 2013 Rate Case; the impact of recent and future
federal and state regulatory changes, environmental laws including regulation
of water, coal combustion byproducts, and emissions of sulfur, nitrogen,
carbon, soot, particulate matter, hazardous air pollutants, including mercury,
and other substances, financial reform legislation, and also changes in tax
and other laws and regulations to which Georgia Power is subject, as well as
changes in application of existing laws and regulations; current and future
litigation, regulatory investigations, proceedings, or inquiries, including
the pending Environmental Protection Agency civil action against Georgia
Power, Federal Energy Regulatory Commission matters, and Internal Revenue
Service and state tax audits; the effects, extent, and timing of the entry of
additional competition in the markets in which Georgia Power operates;
variations in demand for electricity, including those relating to weather, the
general economy and recovery from the recent recession, population and
business growth (and declines), the effects of energy conservation measures,
and any potential economic impacts resulting from federal fiscal decisions;
available sources and costs of fuels; effects of inflation; ability to control
costs and avoid cost overruns during the development and construction of
facilities, including the development and construction of facilities with
designs that have not been finalized or previously constructed, to construct
facilities in accordance with the requirements of permits and licenses, and to
satisfy any operational and environmental performance standards, including the
requirements of tax credits and other incentives; investment performance of
employee benefit plans and Georgia Power's nuclear decommissioning trust
funds; advances in technology; regulatory approvals and actions related to the
Plant Vogtle expansion, including Georgia PSC approvals, Nuclear Regulatory
Commission actions, and potential U.S. Department of Energy loan guarantees;
the inherent risks involved in operating and constructing nuclear generating
facilities, including environmental, health, regulatory, natural disaster,
terrorism, and financial risks; the ability of counterparties of Georgia Power
to make payments as and when due and to perform as required; the ability to
obtain new short- and long-term contracts with wholesale customers; the direct
or indirect effect on Georgia Power's business resulting from terrorist
incidents and the threat of terrorist incidents, including cyber intrusion;
interest rate fluctuations and financial market conditions and the results of
financing efforts, including Georgia Power's credit ratings; the impacts of
any potential U.S. credit rating downgrade or other sovereign financial
issues, including impacts on interest rates, access to capital markets,
impacts on currency exchange rates, counterparty performance, and the economy
in general, as well as potential impacts on the availability or benefits of
proposed U.S. Department of Energy loan guarantees; the ability of Georgia
Power to obtain additional generating capacity at competitive prices;
catastrophic events such as fires, earthquakes, explosions, floods,
hurricanes, droughts, pandemic health events such as influenzas, or other
similar occurrences; the direct or indirect effects on Georgia Power's
business resulting from incidents affecting the U.S. electric grid or
operation of generating resources; and the effect of accounting pronouncements
issued periodically by standard setting bodies. Georgia Power expressly
disclaims any obligation to update any forward-looking information.

www.georgiapower.com

SOURCE Georgia Power

Website: http://www.georgiapower.com
Contact: Georgia Power Media Relations, (404) 506-7676 or (800) 282-1696