FYI - Note one of the reasons for increase (to pay for installation of pollution controls).
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From: 	Barnes, Lynnette  
Sent:	Thursday, September 20, 2001 11:39 AM
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Subject:	Georgia Power rate increase

Georgia Power starts its case for a rate increase 
By KRISTEN WYATT 

09/10/2001 
Associated Press Newswires 
Copyright 2001. The Associated Press. All Rights Reserved. 
ATLANTA (AP) - Georgia Power began its case Monday for raising electric rates by about 50 cents a month on the average residential bill over the next five years. 
Company President David M. Ratcliffe said the hike is needed to keep pace with growth and step up pollution controls. 
The utility, which supplies electricity to 1.8 million customers in Georgia, must get permission from the Public Service Commission before raising rates. 
Ratcliffe told commissioners that Georgia Power consistently charges about 15 percent below the national average and that his company has done a good job meeting demand during hotter-than-usual summers in recent years. 
"We are not experiencing the prices and the trauma the rest of the country is, particularly the West Coast," he said. 
Georgia Power proposes a rate increase of about 1.2 percent for each of the next five years starting next summer. It also is asking to raise some customer service fees. The returned check fee would go from $8.50 to $20, and the charge to start service would go from $18 to $22. 
Georgia Power said it needs the money to help pay for a bevy of new construction projects over the next five years, including the addition of 5,500 megawatts of capacity, 300 miles of new transmission lines and $875 million on environmental controls to cut the amount of pollution from its plants. 
The company proposes raising its allowed earnings from 11 percent to 13.5 percent. Two-thirds of surplus earnings related to weather would be refunded. The company and ratepayers would split excess earnings not related to the weather. Ratepayers now get two-thirds of non-weather earnings. 
That provision has raised concerns the utility could slash costs and pocket the savings without funneling any of the money back to consumers. 
The company will state its case for a rate hike this week, then the Public Service Commission will hold another weeklong hearing next month. A decision on the rate hike is set for Dec. 20. 
During this week's hearing, other companies and citizens get a chance to ask Georgia Power about the increase. 
An attorney for The Kroger Co., Michael Kurtz, said the grocery stores spend about $15 million a year on electricity in Georgia and challenged whether the power company makes higher rates of return from commercial businesses. 
Peggy Harper of Atlanta's Mechanicsville neighborhood complained that rate increases disproportionately hurt the poor and that communities aren't given early notice when Georgia Power plans to start improvements. 
Ratcliffe agreed to consider expanding the company's Web site to better let people know what will happen in their neighborhood without filing an open records request. 
"We try desperately to minimize the impact of any expansion," he said. "Our objective is to work with communities." 
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On the Net: 
Georgia Power: http://www.georgiapower.com 
Public Service Commission: http://www.psc.state.ga.us 
Ratcliffe testimony: 
http://www.psc.state.ga.us/cgi-bin/docftp.asp?txtdocname48312 


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