Bill will raise electric rates

ATLANTA --- Georgia Power customers would see their rates rise under a bill filed Friday in the state Senate.

The legislation from state Sen. Don Balfour, the chairman of the Senate Rules Committee, allows Georgia Power to begin collecting interest early for the construction of two new nuclear reactors at Plant Vogtle near Augusta. The $14 billion expansion won't be completed until 2017 at the earliest, but under Mr. Balfour's bill, the utility could start charging customers for the interest when construction begins in 2011.

Mr. Balfour, R-Snellville, said the average homeowner would see his or her Georgia Power bill rise by about an $1.32 a month in 2011. That would increase to about $10 more per month by 2017.

Without the early interest collection, power bills would jump by $12 in 2017, a company spokeswoman said.

Mr. Balfour said Georgia's fast growing population badly needs additional power supplies and customers will pay for the interest costs eventually.

"If we pay the interest now, we're saving money," he said.

Georgia Power spokeswoman Carol Boatright said allowing for the early recovery of the interest costs would shave about $300 million off the total price.

But consumer groups dispute that. They complain that taxpayers will be paying for the plant long before they ever see a benefit from it.