ATLANTA — Georgia Power has filed a request with the Georgia Public Service Commission (PSC) to reduce fuel rates by 11 percent, or approximately $268 million, in annual fuel billings. The decrease in fuel costs is primarily driven by lower natural gas prices as a result of increased natural gas supplies driven by strong production levels.
If approved by the PSC on or around Dec. 15, the new, lower fuel rates will be effective Jan. 1, 2016. A typical residential customer averaging 1,000 kilowatt-hours (kWh) per month could see a fuel savings of approximately $4, or 3 percent, on their total monthly bill.
Due to proactive planning and a commitment to a diverse fuel mix, Georgia Power is able to take advantage of lower natural gas prices. As part of this commitment, the company continues to cultivate a flexible generation portfolio to meet Georgia’s future energy needs, including newer combined-cycle natural gas generation at Plant McDonough-Atkinson, thousands of solar panels being installed across the state and the new nuclear units under construction at Plant Vogtle near Waynesboro.
Fuel rates are set separately from base rates. Georgia Power does not earn a profit on fuel costs and is allowed recovery of all prudently incurred fuel costs. While fuel rates will decrease in 2016, the company’s base rates will increase as the result of a separate filing Georgia Power must submit (as part of the 2013 rate settlement agreement) to the PSC by Oct. 2 to address environmental and other costs. The proposed decrease in fuel rates is expected to more than offset this projected increase to base rates.
About Georgia Power
Georgia Power is the largest subsidiary of Southern Company (NYSE: SO), one of the nation’s largest generators of electricity. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company’s promise to 2.4 million customers in all but four of Georgia’s 159 counties. Committed to delivering clean, safe, reliable and affordable energy at rates below the national average, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, 21st century coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Consistently recognized as a leader in customer service, Georgia Power was recently ranked highest in overall business customer satisfaction among large utilities in the South by J.D. Power and Associates.