Georgia Power bills jump 12% next month

FILE - Georgia Power Co.'s Plant Bowen, commonly known as Bowen Steam Plant, burns coal to generate electricity on Dec. 14, 2020, in Euharlee, Ga. Georgia's five-member elected Public Service Commission voted Tuesday, May 16, 2023, to let Georgia Power raise rates by about 12% in June to collect an additional $6.6 billion for rising fuel costs. (AP Photo/Mike Stewart, File)
FILE - Georgia Power Co.'s Plant Bowen, commonly known as Bowen Steam Plant, burns coal to generate electricity on Dec. 14, 2020, in Euharlee, Ga. Georgia's five-member elected Public Service Commission voted Tuesday, May 16, 2023, to let Georgia Power raise rates by about 12% in June to collect an additional $6.6 billion for rising fuel costs. (AP Photo/Mike Stewart, File)

ATLANTA (AP) — Electricity bills for Georgia Power Co. customers will rise 12% beginning in June after Georgia’s elected utility regulators on Tuesday approved the boost to make up for the higher cost of fuel.

The five Republican commissioners voted unanimously to let Georgia Power collect an additional $6.6 billion from its 2.7 million customers over the next three years.

A typical residential bill will rise to $147.50 a month, up $15.90 from the current $131.60.

Commissioners adopted an agreement that regulatory staff members and the unit of Atlanta-based Southern Co. reached last month. It's one of at least three increases Georgia Power customers are likely to see this year.

A utility is typically allowed to charge for fuel costs, but is not allowed to make a profit on it. But because of rising fuel costs during the two-year period now ending, Georgia Power says it will end the period roughly $4.5 billion in the hole, even though commissioners approved a 15% cost boost that began in January 2022.

Most of the proposed rate increase will make up for that deficit, repaying the company over three years instead of the normal two because the debt is so large.

“We owe the bill and we’ve got to pay it," said Commissioner Lauren “Bubba” McDonald Jr.

Georgia Power forecasts that it also needs another $2.2 billion to pay higher fuel prices going forward.

“Just as Georgians paid higher prices at the gas pump in 2022, Georgia Power also paid more for the natural gas and other fuels we use to generate electricity,” Georgia Power spokesperson John Kraft said in a statement.

Commissioners rejected proposals to stretch our the recovery of the $4.5 billion in fuel debt over four or five years.

Commission Chairman Tricia Pridemore said customers would still be paying current fuel debt after commissioners set new Georgia Power fuel rates in 2026 under a longer plan, like carrying a credit card balance.

“We would have financed this again,” Pridemore said.

Environmentalists argued commissioners should force Georgia Power to bear some rising fuel costs because it has shifted its generation portfolio to depend on natural gas. They say it’s unfair for the company to make big profits while ratepayers suffer.

"Georgia Power shouldn’t be pocketing billions in record profits while also putting customers in the position of choosing between power and basic needs.” Southern Environmental Law Center attorney Jennifer Whitfield said in a statement.

Bill increases are stacking up for Georgia Power customers. Rates went up 2.5% last month in January after commissioners approved a three-year rate plan in December. Increases of 4.5% will follow in 2024 and 2025. Customers will also have to pay the costs of the third and fourth nuclear units at Plant Vogtle near Augusta. Residential customers will likely be paying $4 a month more when Unit 3 begins operation by June. A larger rate increase is likely to follow when Unit 4 begins operation by 2024.

Commissioners agreed Tuesday to let Georgia Power raise or lower fuel charges by up to 40% between fuel-cost rate cases.

Commissioners also voted to raise fuel cost discounts for low-income senior citizens from $6 a month to $9.50 a month.

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