Press Mention The Atlanta Journal-Constitution July 1, 2004
Topical Mention
Ga. Power asks PSC for a 7% rate boost
In this mention
Georgia Power has requested a 7 percent rate increase ($328.3 million) from the Georgia Public Service Commission, which would cost the average residential customer an additional $5.25 per month. The company cites the need to recoup investments in infrastructure, control ozone pollution, and cover higher depreciation and nuclear decommissioning costs. The PSC is expected to rule on the increase in December, with new rates potentially taking effect in January.
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Full transcript
Ga. Power
asks PSC
for a 7%
rate boost
By MARGARET NEWKIRK
mnewklrk@ajc.com
Georgia Power has asked the state Public Service Commission for a rate increase of 7 percent, or $328.3 million.
The increase would cost the average residential customer an average of $5.25 more a month, based on 1,000 kilowatt hours of monthly electric use, according to Georgia Power.
If approved by the PSC later this year, the rate increase would be the company's first in 13 years, although the company has charged customers for its higher fuel costs over the past few years and typically charges more for power in the summer. The latest such change took place in June.
The PSC is expected to act on the rate increase Dec. 21. New rates would go into effect in January.
Georgia Power Chief Executive Officer Mike Garrett said the company has held operations and maintenance costs to a level slightly below inflation since its last rate increase in 1991.
"Georgia Power employees have worked hard to keep rates below the national average, and our customer service ratings at the top of our industry," Garrett said. "However, to maintain the reliable service our customers expect, we need a rate increase to cover our costs so we can continue to meet customer needs."
The company said its average electric rates are more than 20 percent below the national average.
Georgia Power had a little more than 2 million customers in Georgia at the end of last year, including 1.76 million residential customers.
The company said the increase is necessary to recoup its investment in power lines and equipment, to control ozone pollution, to meet higher depreciation and nuclear decommissioning costs and to pay for purchased power contracts.