What is the primary purpose of Georgia Power's filing with the Georgia PSC?

The primary purpose is to request approval for rate increases over a three-year period to recover various costs, including those related to the Tax Cuts and Jobs Act, infrastructure investments, storm damage, and environmental compliance for coal combustion residuals asset retirement obligations (CCR ARO).

What is the total potential revenue increase requested by Georgia Power?

Georgia Power is requesting a total of $563 million in rate increases effective January 1, 2020, followed by $145 million effective January 1, 2021, and $234 million effective January 1, 2022.

What are the key components of the requested rate increases?

The increases are primarily driven by the need to recover costs associated with the Tax Cuts and Jobs Act, recent and future capital investments in infrastructure, deferred storm damage expenses incurred since 2013, and compliance costs for CCR ARO. Specific tariff breakdowns show allocations for traditional base rates, CCR ARO, environmental compliance, demand side management, and municipal franchise fees.

When is the expected decision from the Georgia PSC, and what are the potential implications?

The Georgia PSC is expected to issue a final order on December 17, 2019. The ultimate outcome of this rate case is uncertain and could materially affect Georgia Power's revenue and Southern Company's financial performance. Investors should pay close attention to the final approved rates and ROE.

SOUTHERN CO 8-K SEC Disclosure

Summary

Southern Company's subsidiary, Georgia Power, has filed a base rate case with the Georgia Public Service Commission (Georgia PSC) seeking rate increases totaling $563 million in 2020, $145 million in 2021, and $234 million in 2022. These proposed increases are part of a three-year Alternate Rate Plan and are intended to recover costs associated with the Tax Cuts and Jobs Act, capital investments in infrastructure, deferred storm damage expenses, and compliance with federal and state regulations for coal combustion residuals asset retirement obligations (CCR ARO). The filing also includes provisions to continue an allowed retail return on common equity (ROE) range of 10.00% to 12.00%, with a customer-sharing mechanism for earnings above the top of the range, and an option for interim cost recovery if earnings fall below the range. The ultimate outcome of this rate case, which is expected to be decided by the Georgia PSC on December 17, 2019, remains uncertain and could materially impact Georgia Power's financial performance. Investors should monitor the Georgia PSC's decision closely as it will determine the actual revenue adjustments and their impact on Southern Company's consolidated results.

Key Highlights

1Georgia Power filed a base rate case with the Georgia PSC on June 28, 2019.
2The filing requests a three-year Alternate Rate Plan with cumulative rate increases of $563 million (2020), $145 million (2021), and $234 million (2022).
3Key drivers for the requested increases include recovery for Tax Cuts and Jobs Act impacts, infrastructure investments, storm damage expenses, and CCR ARO compliance costs.
4Georgia Power proposes a retail return on common equity (ROE) of 10.90% and an equity ratio of 56%.
5The filing proposes to continue an allowed retail ROE range of 10.00% to 12.00%, with a two-thirds customer/one-third company earnings sharing above the range.
6An option for an Interim Cost Recovery tariff is included if earnings fall below the ROE range.
7The Georgia PSC is expected to issue a final order on December 17, 2019.

SOUTHERN CO 8-K Report, Corporate Update (Jun 28, 2019)

Summary

Key Highlights

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