Summary
This 8-K filing details a significant event for Southern Company's subsidiary, Georgia Power. On June 15, 2021, Georgia Power submitted an application to the Georgia Public Service Commission (PSC) to adjust its retail base rates. The primary driver for this adjustment is to recover costs associated with the construction and operation of Plant Vogtle Unit 3 and its common facilities. This filing indicates a request for an approximate annual increase of $369 million, which is expected to become effective after Unit 3 is placed in service, currently scheduled for the first quarter of 2022. The increase will be partially offset by a reduction in the Nuclear Construction Cost Recovery (NCCR) tariff, expected in early 2022, and some fuel cost savings are already factored into current rates.
Key Highlights
- 1Georgia Power has applied to the Georgia PSC for a retail base rate adjustment to recover costs for Plant Vogtle Unit 3 and common facilities.
- 2The requested annual rate increase totals approximately $369 million.
- 3The rate adjustment is tied to the in-service date of Plant Vogtle Unit 3, currently projected for Q1 2022.
- 4A decrease in the Nuclear Construction Cost Recovery (NCCR) tariff of approximately $134 million is expected effective January 1, 2022, partially offsetting the rate increase.
- 5Georgia Power is also seeking to defer approximately $51 million in 2022 financing costs related to the remaining Unit 3 and Common Facilities costs.
- 6The Georgia PSC is expected to issue a final order on this matter by November 2, 2021.
- 7The filing includes a cautionary note regarding forward-looking statements, highlighting the risks and uncertainties associated with the Plant Vogtle project's cost and schedule.