(Atlanta, GA ) Customers of Georgia Power will be paying higher electric bills by April, but apparently not quite as high as the utility had wanted.
Thursday, the Georgia Public Service Commission (PSC) approved by a 4-1 vote an agreement to allow Georgia Powe to collect more money for what's called "fuel cost recovery." However, according to commission staff, the rate will not be as high as the utility company had requested. Staff also says other mechanisms have been put in place to to keep future fuel costs in check.
According to PSC, Georgia Power customers statewide who use an average of 1000 kilowatt hours a month will see an increase of $5.59 in their bills beginning April 1.
Georgia Power says it needs to collect $683 million dollars. This is for the cost of fuel it has already purchased to generate electricity. The PSC says that money will be raised from customers over a 42-month period. In addition, PSC staff say guidlines are being set up to keep under-collected balances from reaching huge numbers in the future. What's called an
"interm fuel rate" will allow Georgia Power to ask for a higher rate if its uncollected balance reaches more $75 million dollars of its projected fuel budget. The interim fuel rate can't exceed 10 percent of the current fuel rate and can't be adjusted more than three times in one year. Any increases in fuel rates through this intermim mecahnism are subject to staff review and Commission approval.
The fuel cost recovery rate increase is not the same as an increase in base rates. Georgia law allows electric utilities to recover their fuel costs. According to PSC staff, those costs have to be "prudently incurred" on a dollar for dollar basis.
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