Summary
Southern Company's subsidiary, Georgia Power, has filed a base rate case with the Georgia Public Service Commission (PSC) requesting an annual retail rate increase of $482 million, or 6.1%, effective January 1, 2014. This filing is part of Georgia Power's established 2010 Alternate Rate Plan and seeks to recover costs associated with significant investments in infrastructure, including environmental controls, transmission, distribution, generation, and smart grid technologies, aimed at maintaining service reliability and customer service levels. The proposed rate plan includes a three-year period of stable rates through December 31, 2016, by levelizing revenue requirements. Key aspects of the filing include the continuation of traditional base rate tariffs and an Environmental Compliance Cost Recovery (ECCR) tariff, a proposed retail return on common equity (ROE) of 11.50% within an allowed range of 10.25% to 12.25%, and a customer-sharing mechanism for earnings above the ROE range. The PSC is expected to issue a final order in December 2013.
Key Highlights
- 1Georgia Power filed a base rate case on June 28, 2013, seeking a $482 million (6.1%) retail rate increase, effective January 1, 2014.
- 2The request is part of the 2010 Alternate Rate Plan and aims to recover costs for infrastructure investments (environmental controls, transmission, etc.).
- 3The filing proposes levelized revenue requirements for three years (through Dec 31, 2016) to provide stable customer rates.
- 4A key element is the continuation of an allowed retail Return on Equity (ROE) range of 10.25% to 12.25%.
- 5Georgia Power is requesting an 11.50% ROE in this rate case.
- 6A customer-sharing mechanism is proposed: 2/3 of earnings above the ROE range go to customers, 1/3 to the company.
- 7The company has the option to file an Interim Cost Recovery tariff if earnings fall below the ROE range.