State regulatory staff and Georgia Power Co. have agreed on a plan that will boost power bills by 12% in June to cover the higher costs of natural gas and coal that the utility burns to generate electricity for its 2.7 million customers.
The unit of Atlanta-based Southern Co. filed new figures Monday saying it needs to collect an additional $6.6 billion from customers over the next three years, under an agreement it reached with Georgia Public Service Commission staff earlier this month.
Because of declining natural gas price forecasts, that’s actually $1.1 billion less than Georgia Power had earlier projected. But it will boost a typical residential bill to $147.50 a month, up $15.90 from the current $131.60. The increase had originally been predicted to be as high as $23.
The five-member elected commission is scheduled to vote on fuel charges on May 16. Any final plan is likely to closely track the agreement between the company and the staff.
Bill increases are stacking up for Georgia Power customers. Rates went up 2.5% last month in January after commissioners approved a three-year rate plan in December. Increases of 4.5% will follow in 2024 and 2025.
Customers will also have to pay the costs of the third and fourth nuclear units at Plant Vogtle near Augusta. Unit 3 is projected to begin operation in May or June, leading to a roughly $ 4-a-month increase for residential customers. A larger rate increase is likely to follow when Unit 4 begins operations, now projected before March 2024.
Typically, a utility is allowed to charge customers for the cost of fuel, but isn’t allowed to make a profit on those charges, unlike the profits Georgia Power is guaranteed for investing in power plants and transmission lines. The all-Republican commission typically decides how much Georgia Power can collect for fuel once every two years. In the meantime, if prices change, the company may collect too much or too little.
During this…
Read the full article here
