Georgia Power rate hike slashed
By Anne Marie Kyzer Staff Writer

Georgia Power customers will see their electric bills go up, but not as much as the company had planned.

Last week, the Georgia Public Service Commission (PSC) nearly cut in half the rate increase proposed by Georgia Power.

Under the approved settlement, the average Georgia Power residential customer will pay about $5.24 more per month beginning Jan. 1. The rates will remain the same through 2010.

The plan will allow Georgia Power to collect an additional $99.7 million annually from base rates and another $222 million per year to recover the cost of environmental controls required by state and federal regulations.

Company officials have said that the money is also needed for new sources of generation and expanding electric infrastructure to meet growing demand.

Georgia Power's original request proposed increases annually from 2008-2010 and would eventually have charged the average residential customer $10.29 more each month.

The PSC settlement cut the company's requested increase by over $675 million.

According to Georgia Power data, base rates have basically remained steady since 1991. However, the company increased their fuel surcharge in July 2006 and again in February 2007 to recover the cost of higher fuel prices. The average customer saw a hike of about $5 each time.