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Higher rates may be coming from Georgia Power

Georgia Power has filed for a fuel cost recovery rate increase with the Public Service Commission. The company says it needs to recover $3.9 billion dollars in costs it has already incurred and it projects to spend on fuel to generate electricity.

By JoAnn Merrigan
Published: December 16, 2009

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You may need to plan ahead on your electric budget. Georgia Power has filed a request with the PSC (Public Service Commission) for a fuel cost recovery increase. State law allows utility companies to recoup the cost of the fuel (coal, natural gas, etc.) that they use to generate electricity.

The amount of this request - a big chunk of change. It's 3.9 billion dollars. Georgia Power spokesperson Christy Ihrig says the figure represents hundreds of millions already spent in the past 18 months on fuel ($642 million to be exact) and a projected $470 million dollars more that the company anticipates spending in the next year and a half.

Ihrig acknowledges that the cost of natural gas has actually declined during the recession, but says the costs already incurred and the projected costs are based on contracts Georgia Power signed when prices were higher.

Most Georgia Power customers may see about a 7 dollar increase on their monthly bills. However, Ihrig says Savannah area customers will be paying a little less, about $5.58 extra per month.

Ihrig says when Georgia Power took over Savannah Electric a few years ago, customers here were paying slightly higher rates. Things are still leveling out. She says Savannah area customers will be paying about 5.3 percent higher rates under the new fuel cost recovery plan (again $5.58) and that is based on monthly use of 1,000 kilowatt hours.

The last fuel cost recovery rate went into effect in June of 2008. This request must be approved by the Public Service Commission. Ihrig says hearings will be held in February. If approved, customers would have to start paying higher rates on April first.