PSC approves Company's request to lower fuel rates by 17.2 percent over the next two years. Special interim reduction over summer months to provide customers additional relief during COVID-19.
The Georgia Public Service Commission (PSC) approved Georgia Power's plan to reduce its fuel rates by 17.2 percent and total billings by approximately $740 million over a two-year period. This reduction will lower the total monthly bill by approximately $5.32 for the typical residential customer using 1,000 kilowatt-hours per month beginning June 1, 2020.
In addition, the implementation of a special interim reduction will provide customers additional relief during the COVID-19 pandemic through even lower fuel rates over the upcoming 2020 summer months. When paired with the new lower fuel rates, the special interim reduction will lower the total bill of a typical residential customer using an average of 1,000-kilowatt hours by a total of $10.26 per month from June through September 2020.
"At Georgia Power, our diverse fuel mix enables us to take advantage of the most cost-effective resources throughout the year and pass along savings to customers. Working with the Public Service Commission and Staff to reach today's approved agreement, we saw an opportunity to pass along those savings in a way that will provide additional relief to customers navigating the impacts of COVID-19 this summer," said Paul Bowers, chairman, president and CEO of Georgia Power.
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 PSC, Georgia Power proactively plans and develops a diverse and balanced energy mix including nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Fuel rates are set separately from base rates. Georgia Power's last fuel adjustment was in 2016.
In addition to the planned reduction in fuel rates, Georgia Power completed earlier this year 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.
To learn more about how Georgia Power delivers rates below the national average, cultivates a diverse energy mix to ensure reliable and affordable power, as well as free energy services and programs available for customers, visit www.georgiapower.com.
About Georgia Power
Georgia Power is the largest electric subsidiary of Southern Company (NYSE: SO), America's premier energy company. Committed to delivering clean, safe, reliable and affordable energy at rates below the national average, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. For more information, visit www.GeorgiaPower.com and connect with the company on Facebook (Facebook.com/GeorgiaPower), Twitter (Twitter.com/GeorgiaPower) and Instagram (Instagram.com/ga_power).
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