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Georgia Power Co. seeks 6 percent rate decrease with PSC

Friday, March 30, 2012 10:30 AM
Last updated Saturday, March 31, 2012 1:13 AM
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Georgia Power Co. on Friday filed for a rate reduction for its customers that will be in effect for about two years and would reduce most residential bills by about 6 percent.

According to a Georgia Public Ser­vice Commission summary of the company’s filing, the fuel rate decrease is mainly the result of reduced energy costs associated with lower natural gas prices and conservative fiscal planning by the commission. Other contributing factors, according to Georgia Power, include lower demand for electricity, coupled with mild weather.

The reduction would amount to about $567 million annually – or a monthly reduction of about 6 percent for the typical residential consumer averaging 1,000 kilowatt-hours, the commission said. Total fuel rate reductions would average about 19 percent.

If approved, the rates will begin July 1.

Under Georgia law, Georgia Power is entitled to recover fuel costs associated with generating electricity and those costs are passed on to ratepayers. Beginning more than a decade ago, fuel prices for coal, natural gas, fuel oil and other sources increased sharply because of limited energy supplies in the U.S. and increased demand worldwide, primarily from the growing economies of China and India.

To reduce the impact on customers that an immediate dollar-for-dollar pass-through would have had on monthly bills, the commission required the utility to carry a fuel cost balance. Although it has fluctuated, the under-recovered balance at one time reached close to $1 billion.

According to Friday’s filing by Geor­gia Power, the balance is to be completely paid off by today.

The Commission will conduct a hearing on the matter in early June.

Georgia Power is an investor-owned utility that serves 2.35 million customers in all but four of Georgia’s 159 counties. It is the largest of four electric utilities that make up Southern Co.

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Ugahater715
17
Points
Ugahater715 03/30/12 - 11:04 am
0
0
Me likey!

Me likey!

faithson
4838
Points
faithson 03/30/12 - 01:22 pm
2
0
ya know.. I have some good

ya know.. I have some good friends who work for GA Power, they have been a good corporate citizen all these long years. Glad to see they take their financial responsibility seriously.

EyeMaeNo
20
Points
EyeMaeNo 03/30/12 - 04:26 pm
0
0
Thanks for the whopping
Unpublished

Thanks for the whopping $21.00 per month that will save me Georgia Power. Now I can buy a snickers bar and a coke or two!

And with the annual savings, I can make, let's see: a half a car payment, or one months car insurance, or maybe I should purchase 252 $1.00 lottery tickets!!!

Martinez
154
Points
Martinez 03/30/12 - 10:11 pm
2
0
I will take the savings, no

I will take the savings, no matter how small. All too often our bills just increase year over year so any decrease is welcomed.

linux
94
Points
linux 03/31/12 - 10:10 am
0
0
Amazing. I've relocated from

Amazing. I've relocated from Seattle, where the cost of electricity per kWH is 8 times what it is here, and to actually see rates go down is absolutely unheard of. Most likely power and water increase 6% every year.

This is a good thing, especially with summer coming and the hefty A/C bills.

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