This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Georgia Power Files Request For 7 Percent Fuel Rate Reduction

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 million.

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,254.82 -30.92 -0.17%
S&P 500 2,128.86 -1.96 -0.09%
NASDAQ 5,095.4680 +4.6740 0.09%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs