What are the main outcomes of the Georgia PSC's March 17, 2009 decision?

The Georgia PSC approved the certification for construction of two new nuclear units at Plant Vogtle (Units 3 & 4) with an estimated cost of $6.4 billion, and approved the conversion of Plant Mitchell from coal to wood biomass fuel for about $103 million. They also allowed Georgia Power to include construction work in progress and financing costs in its rate base for the Vogtle project.

What is the significance of the "Georgia Nuclear Energy Financing Act"?

This act, passed by the Georgia Legislature, allows Georgia Power to include nuclear construction work in progress accounts and associated financing costs in its rate base for cost recovery during the construction period. The cost recovery provisions are set to become effective January 1, 2011, if the bill is signed by the Governor.

How will the Plant Vogtle project be funded and recovered by Georgia Power?

The Georgia PSC's approval allows Georgia Power to include the construction costs of Plant Vogtle Units 3 and 4 in its rate base, and to recover financing costs during the construction period, beginning in 2011. This is contingent on the "Georgia Nuclear Energy Financing Act" being enacted.

What is the impact of the delayed fuel case filing?

Georgia Power's fuel case filing, which determines fuel rates, has been delayed until September 4, 2009, with new fuel rates expected to be effective from January 1, 2010. This deferral might affect the timing of adjustments to customer electricity bills related to fuel costs.

SOUTHERN CO 8-K SEC Disclosure

Summary

This 8-K filing by Southern Company and Georgia Power Company announces significant approvals from the Georgia Public Service Commission (PSC) concerning future energy projects. Key among these is the certification for the construction of two new nuclear units at Plant Vogtle, with an estimated in-service cost of approximately $6.4 billion. This approval includes the ability for Georgia Power to include construction work in progress (CWIP) and financing costs in its rate base during the construction period, beginning in 2011, subject to the Georgia Legislature's "Georgia Nuclear Energy Financing Act" being signed into law. Additionally, the Georgia PSC approved Georgia Power's plan to convert Plant Mitchell from coal to wood biomass fuel at an estimated cost of $103 million, with a significant portion allocated to the retail jurisdiction. The PSC also granted Georgia Power a delay in its fuel case filing until September 4, 2009, with new fuel rates anticipated to take effect in January 2010. These approvals are critical for the companies' long-term energy strategy and financial planning, impacting future capital expenditures and rate recovery mechanisms.

Key Highlights

1Georgia PSC approved certification for construction of Plant Vogtle Units 3 and 4 with an estimated in-service cost of $6.4 billion.
2Georgia Power can include construction work in progress (CWIP) and financing costs in rate base for Plant Vogtle Units 3 & 4 during construction, starting in 2011, contingent on legislative approval.
3Georgia PSC approved Georgia Power's request to convert Plant Mitchell from coal to wood biomass fuel for approximately $103 million.
4The Georgia Legislature passed the "Georgia Nuclear Energy Financing Act" (Senate Bill 31) which enables CWIP and financing cost recovery for nuclear construction.
5Georgia Power's fuel case filing was delayed from March 13, 2009, to September 4, 2009, with new fuel rates expected January 1, 2010.
6The PSC's approvals reflect stipulations agreed upon with Georgia Power and the Public Interest Advisory Staff.
7The company cautions that estimated construction costs are forward-looking and subject to significant variability due to various factors.

SOUTHERN CO 8-K Report, Corporate Update (Mar 17, 2009)

Summary

Key Highlights

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