8-KOther Events

SOUTHERN CO 8-K Report, Corporate Update (May 17, 2005)

Filed May 17, 2005For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This 8-K filing from Southern Company (SO) and its subsidiary Georgia Power Company announces a significant development in retail fuel cost recovery. On May 17, 2005, the Georgia Public Service Commission (GPSC) approved Georgia Power's request to increase customer fuel rates. This decision allows the company to recover approximately $508 million in under-recovered fuel costs accumulated as of May 31, 2005, over a four-year period. The rate increase, effective June 1, 2005, also incorporates recovery for future projected fuel costs. This approval represents an average annual revenue increase of approximately 9.5%, or about $473 million, which is crucial for managing fluctuating energy commodity prices and maintaining financial stability. Investors should note that this addresses a key operational and financial risk for Georgia Power and, by extension, its parent, Southern Company.

Key Highlights

  • 1Georgia Public Service Commission (GPSC) approved Georgia Power's request for a customer fuel rate increase.
  • 2The increase is intended to recover approximately $508 million in under-recovered fuel costs as of May 31, 2005.
  • 3The recovery period for these under-recovered costs will be from June 1, 2005, through May 31, 2009.
  • 4The new fuel rate will also cover future projected fuel costs for the June 2005 through May 2006 period.
  • 5The approved rate change is expected to result in an average annual revenue increase of approximately 9.5%, or roughly $473 million.
  • 6The new fuel rate is scheduled to become effective on June 1, 2005.

Frequently Asked Questions

The primary event is the approval by the Georgia Public Service Commission (GPSC) for Georgia Power Company to increase customer fuel rates. This approval allows the company to recover past under-recovered fuel costs and to recover future projected fuel costs.

Georgia Power will be able to recover approximately $508 million in under-recovered fuel costs that had accumulated as of May 31, 2005.

The new fuel rates will become effective on June 1, 2005. The recovery of the $508 million under-recovered fuel costs is authorized over a period of four years, from June 1, 2005, through May 31, 2009. Future projected fuel costs for the June 2005 through May 2006 period are also covered.

The approved fuel rate increase is estimated to result in an average annual increase in revenues of approximately 9.5%, which equates to approximately $473 million.