The Georgia Public Service Commission (PSC) approved Georgia Power’s request (Docket No. 3382) to reduce its fuel rates by an additional 15 percent on May 17.
The Atlanta-based electric utility, which serves 2.5 million customers, said the decrease in fuel costs primarily is being driven by lower natural gas prices.
The reduction is expected to decrease the total monthly bill of the typical residential customer using 1,000 kilowatt-hours (kWh) per month by about $4.60, beginning June 1. When combined with a previous fuel rate reduction which went into effect in January, the same Georgia Power residential customer will pay nearly $10 less in fuel costs each month than during 2015.
In addition to the reduction in fuel rates, Georgia Power also recently announced its base electric rates will remain flat through 2019. This three-year base rate assurance for all of the company’s customers was part of the decision by the Georgia PSC to approve the pending merger of Southern Company (the parent company of Georgia Power) and AGL Resources.
Over the past 26 years, Georgia Power claimed, the utility’s total retail rate has averaged more than 13 percent below the national average – noting that the company’s total retail price of 9.22 cents/kWh at the end of 2015 was more than 14 percent below the national average.