Press Mention Atlanta Business Chronicle December 20, 2004
SACE Referenced
PSC approves 4.2% Georgia Power rate hike
In this mention
The Georgia Public Service Commission voted 3-2 to approve a 4.2% rate increase for Georgia Power customers effective January 1, 2005, representing a $194 million increase. The Southern Alliance for Clean Energy opposed the decision, arguing that Georgia Power should prioritize energy efficiency investments over expensive infrastructure projects. SACE policy director Rita Kilpatrick criticized the utility for wasting ratepayer money on costly power plants and transmission lines rather than lower-cost energy-efficient alternatives.
Original clipping
PDF didn't open? Open it in a new tab →
Full transcript
PSC approves 4.2% Georgia Power rate hike
Justin Rubner
Business and residential electric bills for Georgia Power customers will go up 4.2 percent starting Jan. 1.
The state's Public Service Commission, which regulates utilities, voted 3-2 for the $194 million increase today, capping a six-month long process of proposals and counter-proposals.
In June, Georgia Power asked for a 7 percent hike -- about $328 million -- but that figure was reduced over time.
The last time the PSC allowed an increase was in 1991. Two times since, the PSC voted to drop rates.
Commissioners Doug Everett, David Burgess and Stan Wise voted for the increase. Commissioners Angela Speir and Bobby Baker voted against it.
Baker called the vote "very generous."
"It was much larger than I thought was appropriate," said Baker. "And it was a little disturbing to me that the commission's adversary staff did not hold to their original intent (a reduction of about $57 million) that they presented in the rate case."
Wise, meanwhile, called the vote "a good business decision," as the money will go in part toward infrastructure improvements.
"If you don't fix your leaky roof today, it's going to cost you more in the future," Wise said. He added the decision was ultimately "good for the rate payers."
The Southern Alliance for Clean Energy disagrees. The
increasing its revenue base rather than encouraging its customers to curb demand. The group also says Georgia Power should spend more time studying "lower cost" energy-efficient energy resources.
"Georgia Power is wasting ratepayers' money on more expensive power plants and transmission lines," said Rita Kilpatrick, the group's policy director. "We urged utility regulators to not give the company a dime for any of this infrastructure until it requires investment in lower-cost energy efficiency options."
Georgia Power says it faces rising costs for power lines, new generating sources, environmental controls and other infrastructure. The company claims it needs to invest $5 billion over the next five years to keep up with customer demand and to make investments in environmental controls.
Georgia Power's largest non-government purchaser of electricity is Augusta Newsprint, a small paper mill that employs 380 employees.
The company currently pays about $2.5 million every month on electricity.