Georgia Power has filed a plan with the Georgia Public Service Commission (PSC) to reduce its fuel rates by 16 percent and total annual billings by $329 million. This reduction, if approved by the PSC, is expected to lower the total monthly bill by approximately $5 for the typical residential customer using 1,000 kilowatt-hours per month beginning June 1, 2020.
The reduction in the company’s fuel rate is driven primarily by lower natural gas prices as a result of increased natural gas supplies. By working with the Georgia PSC, Georgia Power proactively plans and develops a diverse and balanced energy mix. This means the company is able to take advantage of the most cost-effective resources throughout the year including nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind, and pass along savings to customers. Fuel rates are set separately from base rates.
The Georgia PSC will conduct public hearings regarding the filed plan on May 18 – 19, 2020, with a final decision expected on May 28, 2020. If approved, the new fuel rates will be effective June 1, 2020.
In addition to the planned reduction in fuel rates, Georgia Power also recently announced the third and final bill credits associated with the Tax Cuts and Jobs Act of 2017, resulting in credits totaling $106 million. The typical residential customer using an average of 1,000 kilowatt-hours per month received a credit of approximately $22 on their February Georgia Power bill.