Summary
Southern Co. (SO) announced via an 8-K filing that its subsidiary, Georgia Power Company, has secured approval for an extension of its Alternate Rate Plan (ARP) through December 31, 2028. This "ARP Extension" will maintain Georgia Power's current retail base rates for 2026, 2027, and 2028, excluding potential adjustments for storm damage costs incurred through the end of 2025, which will be addressed in a separate regulatory proceeding. The approved plan continues Georgia Power's retail return on common equity (ROE) set point at 10.50% and maintains the ROE range of 9.50% to 11.90%. Earnings above the 11.90% ROE will be shared, with 40% allocated to regulatory assets, 40% to customer refunds, and 20% retained by Georgia Power. Importantly, there is no recovery for earnings shortfalls below 9.50% on an actual basis, though Georgia Power may petition for interim cost recovery if it projects earnings below this threshold.
Key Highlights
- 1Georgia Power's existing Alternate Rate Plan (ARP) extended through December 31, 2028.
- 2Retail base rates for 2026, 2027, and 2028 will remain unchanged, except for storm damage costs.
- 3Potential recovery for storm damage costs incurred through December 31, 2025, will be determined in a separate regulatory proceeding.
- 4Retail Return on Equity (ROE) set point remains at 10.50% with an approved range of 9.50% to 11.90%.
- 5Earnings above the 11.90% ROE will be subject to a 40% customer refund, 40% regulatory asset allocation, and 20% Georgia Power retention.
- 6No actual basis recovery for ROE shortfalls below 9.50%; Georgia Power may seek Interim Cost Recovery (ICR) if projected below this level.
- 7Georgia Power is required to file a base rate case by July 1, 2028.