Georgia Power files plan to raise rates, build infrastructure

By the OGJ Online Staff

HOUSTON, June 29 -- Georgia Power Co., a unit of Southern Co., Atlanta, said it is seeking a 7.5% rate increase spread over 5 years to help finance construction of new transmission lines and pollution control equipment.

The company asked for a 1.5%/year increase to cover the cost of purchased power or of building new generating capacity. It also asked Georgia regulators to raise its authorized return on equity to 11-13.5% from the existing range of 10-12.5%.

The company said it will build 5,000 Mw of generation and expects to spend $1.4 billion on 300 miles of transmission lines, plus $875 million on pollution control devices. Capital expenditures in 2001 are projected to be about $1.6 billion. Georgia Power said the capital costs need to be added to its rate base.

The plan filed with the Georgia Public Service Commission Friday includes various alternative proposals. Georgia Power said it was required to file a rate case by July 1 based on costs during a 1-year test period. The filing calls for a 2.3% rate increase of about $103 million.

Georgia Power said it also filed an alternative proposal, which waives the proposed increase in favor of other measures in the proposed 5-year plan. The company said it asked to continue operating within an earnings band, as it has for the last 6 years but is requesting to raise its return on equity to 11-13.5%.

Under the new proposal, customers would be allowed to keep two-thirds of any earnings above the earnings range that can be attributed to hot weather, while the company would keep one third. If there are any other earnings above the range, including those attributable to the company's cost management program, the company would receive half and the customers half.

Georgia Power also proposed a certified capacity cost recovery tariff effective June 1, 2002 to recover the cost of building new power plants or of buying electricity. It said the first year increase will be about $30 million or 0.7%, less than the increase required by a test-year case.

The company noted it has not had a base rate increase since 1991 and customers received a $262 million rate reduction in 1998 and another $24 million reduction in 1999.

Related Articles

Emerging producers offered guidelines for governance

07/06/2015 Like most worthy endeavors, governing oil and gas activity at the national level is easier said than done-especially where oil and gas never before...

Nelson-Farrar Quarterly Costimating Indexes for selected equipment items

07/06/2015 The Nelson-Farrar refinery construction index rose to 2,475.6 by December 2012 from 2,467.4 in January of the same year. The index continued to ris...

Oman lets contract for Sohar refinery unit revamp

07/06/2015 Oman Oil Refineries & Petroleum Industries Co., has let a contract to MAN Diesel & Turbo SE, Augsburg, Germany, for work related to the ove...

US House committee leaders send letters to Plains, PHMSA about leak

07/06/2015 US House Energy and Commerce Committee leaders from both parties asked Plains Pipeline LP and the US Pipeline and Hazardous Materials Safety Admini...

Gas faces more competition from coal, renewables, IEA official says

07/06/2015 Natural gas faces growing competition from coal and renewable energy sources at a time when its potential demand growth is slowing down, an Interna...

OGJ Newsletter


International news for oil and gas professionals

Natural gas opposition has shifted to transportation, speakers say

07/06/2015 Opposition to natural gas projects has moved from exploration and production to transportation, speakers said during a discussion on Capitol Hill o...

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected