Georgia Power Seeks Rate Hikes to Cover Smart Grid Costs

Saturday, 03 July 2010 10:28

0 Comments

Georgia Power has petitioned the Georgia Public Service Commission (PSC) to increase its base rates by a little more than eight percent of the company’s retail rates, to generate approximately $615 million, to recover the investment costs for cleaner generation sources, power lines, smart grid technologies, environmental controls, and energy efficiency programs to meet current and future customer demand. The proposed change in rates would be effective Jan. 1, 2011.

Since 2007, Georgia Power has invested almost $5 billion. If the utility’s request is approved by the Commission, the average residential customer who uses 1,000 kilowatt-hours per month would see an increase of about 10 percent, which works out to $10.88. The increase for business customers would average between seven to 10 percent.

Ann Daiss, Georgia Power vice president, comptroller and chief accounting officer says, “Georgia is the fourth-fastest growing state in the nation, and we have invested billions of dollars to serve that growth. We must continue to invest in our infrastructure to maintain the reliable, affordable electricity and high level of customer satisfaction that our customers deserve and expect.”

The company currently estimates increases for new generation, environmental controls, and demand-side management programs are expected to increase the typical residential customer bill per month by about $5.38 in 2012 and $1.42 in 2013.

Georgia Power also is proposing changes to its current accounting order with the PSC that would replace large rate changes with smaller, periodic adjustments; allow customers to benefit from cost controls and proactive management on a timelier basis; allow customers to share in unexpected economic and/or weather impacts; support a more timely process for review of both past and projected costs than the current lengthy and complex filings; and help maintain the financial stability of the company and keep financing costs low.

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 that serves 2.3 million customers and has operations in all but four of Georgia’s 159 counties.