ATLANTA, June 29 /PRNewswire/ -- Georgia Power today asked the Georgia
Public Service Commission (PSC) for permission to increase its base rates
to recover costs for environmental programs, new generation and electric
infrastructure to meet growing customer demand for electricity. If the
request is approved, the average residential customer bill would increase
by about 7.06 percent, or $6.67 per month. The average residential customer
uses about 1,000 kilowatt-hours per month. The proposed change in rates
would not be effective until January 1, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/CLW066LOGO )
Georgia Power's last base rate increase went into effect Jan. 1, 2005.
"We are complying with the new federal and state environmental rules
that require us to further reduce our emissions," said Mike Garrett,
President and CEO of Georgia Power. "These rules will require significant
investments and we are asking the PSC to allow us to recover these costs.
We're also working to ensure we have the electric infrastructure in place
to maintain a reliable electric system for our customers as our state
grows."
In order to meet federal and state standards for nitrogen oxide, sulfur
dioxide, mercury and particulate matter emissions, Georgia Power
anticipates investing $2.7 billion between 2007 and 2011. By 2015, the
company anticipates reducing NOx emissions by 85 percent and SO2 emissions
by 95 percent from 1990 levels and achieving significant reductions in
mercury and particulate matter emissions.
In addition to environmental controls, the proposed increase will also
address infrastructure needed to keep up with increasing customer demand
for electricity. Today, the average residential customer uses 15 percent
more electricity than it did just 10 years ago. Georgia Power is serving
127,000 more customers than it was just three years ago.
To meet customer demands for electricity, Georgia Power has added
nearly 5,000 megawatts in electric generation and certified purchase power
capacity since 1991. The company has also invested more than $1.3 billion
in new power lines and substations since 2003.
In total, Georgia Power will need to invest $5.5 billion over the next
three years to keep up with customer needs and environmental controls. This
$5.5 billion includes $1.6 billion for new generating capacity and
investment in existing plants; $2.1 billion for power lines, new metering
equipment and substations; $1.3 billion for additional environmental
controls; and $500 million for nuclear fuel and other capital improvements.
In addition to a traditional one-year rate filing, the company provided
an optional three-year plan. This plan provides for the same increase in
2008, as well as increases of 2.9 percent, or $2.93 per month, in 2009, and
0.66 percent, or 69 cents per month, in 2010 for the average residential
customer. The increases in 2009 and 2010 would recover the additional
environmental costs in those years.
For customers in the Savannah area, the Merger Transition Adjustment
that was put in place last year is scheduled to expire on Dec. 31, 2007.
Savannah customers will be merged onto Georgia Power rates effective Jan.
1, 2008. The PSC's decision on Georgia Power's rate case will determine the
rates for Savannah customers in the future.
Georgia Power's base rates remain at approximately the same level as
1991 when adjusted for inflation. This is possible because the PSC
decreased base rates in 1998 and 2001.
Georgia Power's rates rank approximately 17 percent below the national
average and also continue to compare favorably to rates of other utilities
in Georgia. (See PSC rate surveys:
http://www.psc.state.ga.us/electric/surveys/residentialrs.asp) Even with
this proposed increase, Georgia Power's rates should remain well below the
national average.
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.
Note: Georgia Power, like other electric utilities in Georgia, has had
a summer base rate and winter base rate for several years. The summer rate
is effective June 1 each year because it costs more to generate electricity
in the summer because of increased demand -- primarily from air
conditioners. Winter rates become effective Oct. 1.
Cautionary Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding
Georgia Power's projected capital expenditures for a five-year period
ending in 2011, reliability, emission reductions, and Georgia Power's
filing with the PSC to increase retail base rates. There are various
factors that could cause actual results to differ materially from those
suggested by the forward-looking statements; accordingly, there can be no
assurance that such indicated results will be realized. These factors
include: the impact of recent and future federal and state regulatory
change, including legislative and regulatory initiatives regarding
deregulation and restructuring of the electric utility industry,
implementation of the Energy Policy Act of 2005, and also changes in
environmental, tax, and other laws to which Georgia Power is subject, as
well as changes in application of existing laws and regulations; current
and future litigation, regulatory investigations, proceedings or inquiries,
including the pending Environmental Protection Agency civil action against
Georgia Power and Federal Energy Regulatory Commission matters; the
effects, extent and timing of the entry of additional competition in the
markets in which Georgia Power operates; variations in the demand for
electricity, including those related to weather, the general economy and
population, and business growth (and declines); available sources and costs
of fuel; ability to control costs; investment performance of Georgia
Power's employee benefit plans; advances in technology; state and federal
rate regulations and the impact of pending and future rate cases and
negotiations, including rate cases relating to fuel cost recovery; internal
restructuring or other restructuring options that may be pursued; potential
business strategies, including acquisitions or dispositions of assets or
businesses, which cannot be assured to be completed or beneficial to
Georgia Power; the ability of counterparties of Georgia Power to make
payments as and when due; the ability to obtain new short- and long-term
contracts with neighboring utilities; the direct or indirect effect on the
business of Georgia Power resulting from terrorist incidents and the threat
of terrorist incidents; interest rate fluctuations and financial market
conditions and the results of financing efforts and Georgia Power's credit
ratings; the ability of Georgia Power to obtain additional generating
capacity at competitive prices; catastrophic events such as fires,
earthquakes, explosions, floods, hurricanes, pandemic health events, such
as an avian influenza, or other similar circumstances; the direct or
indirect effects on Georgia Power's business resulting from incidents
similar to the August 2003 power outage in the Northeast; the effect of
accounting pronouncements issued periodically by standard setting bodies;
and other factors discussed in reports filed by Georgia Power from time to
time with the Securities and Exchange Commission. Georgia Power expressly
disclaims any obligation to update these forward looking statements.
SOURCE Georgia Power
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Related links:
http://www.georgiapower.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20050216/CLW066LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media Relations Staff of Georgia Power,
+1-404-506-7676, +1-800-282-1696, corpcomm@georgiapower.com
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