Summary
This 8-K filing by Southern Company (SO) and its subsidiary Georgia Power Company reports on the approval of a new three-year retail rate plan by the Georgia Public Service Commission (PSC) for Georgia Power, effective January 1, 2008, through December 31, 2010. This "2007 Plan" was a result of a settlement agreement among Georgia Power and various stakeholders, including consumer advocates and industrial groups. The approved plan allows for an increase in Georgia Power's retail base rates by approximately $99.7 million, intended to recover costs related to investments in transmission, distribution, generation, and increased operating expenses. Additionally, an Environmental Compliance Cost Recovery (ECCR) tariff will be implemented, adding approximately $222 million to rates to cover costs associated with environmental controls. These increases translate to an estimated $1.55 per month for the average residential customer for base rates and $3.60 per month for the ECCR tariff.
Key Highlights
- 1Georgia Power received approval for a new three-year retail rate plan from the Georgia PSC, effective January 1, 2008 - December 31, 2010.
- 2The rate plan is based on a Settlement Agreement between Georgia Power and a coalition of stakeholders.
- 3Retail base rates will increase by approximately $99.7 million annually to cover investments and operating costs.
- 4An Environmental Compliance Cost Recovery (ECCR) tariff will add approximately $222 million annually for environmental control costs.
- 5Average residential customers will see an estimated monthly increase of $1.55 for base rates and $3.60 for the ECCR tariff.
- 6Georgia Power's earnings will be evaluated against a retail return on common equity (ROE) range of 10.25% to 12.25%.
- 7Earnings above 12.25% ROE will be split, with one-third applied to the ECCR tariff and two-thirds to rate refunds, with no base rate increase sought unless ROE falls below 10.25%.