Summary
This 8-K filing announces significant regulatory decisions by the Georgia Public Service Commission (Georgia PSC) concerning Georgia Power, a subsidiary of Southern Company (SO). The Georgia PSC has approved an Alternate Rate Plan (2010 ARP) for Georgia Power, effective from January 1, 2011, through December 31, 2013. This plan, based on a settlement agreement with various stakeholders, allows for substantial increases in base revenues through adjustments to traditional base tariff rates, Demand-Side Management (DSM) tariffs, Environmental Compliance Cost Recovery (ECCR) tariffs, and Municipal Franchise Fee (MFF) tariffs. Furthermore, the filing details that Georgia Power's retail return on equity (ROE) will be set at 11.15%, with a performance band of 10.25% to 12.25%. Earnings above 12.25% will be shared with customers, while shortfalls below 10.25% will not be automatically recovered, though Georgia Power may petition for an Interim Cost Recovery (ICR) tariff under specific conditions. Separately, the Georgia PSC approved a Nuclear Construction Cost Recovery (NCCR) tariff, effective January 1, 2011, to recover financing costs associated with the construction of Plant Vogtle Units 3 and 4.
Key Highlights
- 1Georgia PSC approves an Alternate Rate Plan (2010 ARP) for Georgia Power, effective January 1, 2011 - December 31, 2013.
- 2The 2010 ARP allows for a total base revenue increase of approximately $562.3 million starting January 1, 2011.
- 3This translates to an estimated $10.76 per month increase for the typical residential customer in 2011.
- 4Georgia Power's retail ROE is set at 11.15%, with earnings above 12.25% shared with customers and no automatic recovery for shortfalls below 10.25%.
- 5Georgia PSC approves a Nuclear Construction Cost Recovery (NCCR) tariff for Plant Vogtle Units 3 and 4.
- 6The NCCR tariff, effective January 1, 2011, will collect approximately $223 million for financing costs of Plant Vogtle construction.