Summary
This 8-K filing by The Southern Company and its subsidiary Georgia Power Company details a significant development in Georgia Power's retail base rate proceeding before the Georgia Public Service Commission (PSC). On November 16, 2007, Georgia Power filed rebuttal testimony that includes a proposed Settlement Agreement with various stakeholders. This agreement aims to increase Georgia Power's retail base rates by approximately $99.7 million, effective January 1, 2008, to cover investments and increased operating costs. Furthermore, the proposed settlement introduces an Environmental Compliance Cost Recovery (ECCR) tariff designed to recover costs associated with environmental controls, projected to add roughly $222 million annually over a three-year period. This rate increase is estimated to impact the average residential customer by about $5.70 per month. The settlement also establishes a return on common equity range of 10.25% to 12.25%, with earnings above this range subject to a sharing mechanism for the ECCR tariff and rate refunds. While this settlement represents a significant step, it is subject to approval by the Georgia PSC, with a final vote scheduled for December 20, 2007, meaning the terms could still change.
Key Highlights
- 1Georgia Power filed rebuttal testimony and a proposed Settlement Agreement in its retail base rate proceeding with the Georgia PSC.
- 2The settlement proposes an approximate $99.7 million increase in retail base rates, effective January 1, 2008.
- 3An Environmental Compliance Cost Recovery (ECCR) tariff is proposed to recover environmental control costs, estimated at $222 million annually over three years.
- 4The average residential customer's bill is projected to increase by approximately $5.70 per month under the settlement.
- 5The settlement sets a retail return on common equity range of 10.25% to 12.25%, with earnings sharing mechanisms for amounts exceeding this range.
- 6The Georgia PSC is scheduled to vote on the matter on December 20, 2007, and the terms are subject to PSC approval and potential changes.