Georgia Power Plans 12% Rise in Electricity Bills Due to Higher Fuel Costs
Georgia Power, a unit of Atlanta-based Southern Co., plans to increase electricity bills by 12% in June to cover the rising costs of natural gas and coal used to generate electricity for its 2.7 million customers. The company filed new figures on Monday, stating that it needs to collect an additional $6.6 billion from customers over the next three years to offset its fuel costs. This is $1.1 billion less than the company's original projections. The proposed increase will raise a typical residential bill to $147.50 per month, up by $15.90 from the current $131.60.
The Georgia Public Service Commission staff and the company have reached an agreement that is likely to be approved by the five-member elected commission on May 16. Typically, the commission approves fuel costs every two years, but prices can fluctuate within this period. Therefore, the company may collect too much or too little money. The proposed increase will repay the company's fuel deficit over three years, instead of the usual two, as the debt is too large.
Georgia Power's customers are already facing multiple rate increases. In January, rates went up by 2.5%, and increases of 4.5% will follow in 2024 and 2025. Customers will also have to bear the costs of the third and fourth nuclear units at Plant Vogtle near Augusta. Unit 3 is expected to begin operations 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.
The company and commission staff have agreed to raise the fuel cost discount for low-income senior citizens from $6 a month to $8 a month. However, environmentalists argue that the company should bear some of the rising fuel costs, as it has shifted its generation portfolio to rely on natural gas, whose price is volatile. The company argues that the commission has approved the current generation mix as the most economical and reliable option. The Georgia Association of Manufacturers argues that the commission should extend the repayment period of the deficit to five years to reduce rate increases, while Georgia Power opposes this suggestion.