Cheaper Electric Rates Coming For GA Power Customers
Georgia Power is cutting electricity rates. The shift to a larger use of natural gas and away from coal, combined with a drop in natural gas prices means the utility is paying less for fuel to generate electricity. As a result, Georgia Power will be lowering electricity rates beginning June 1st for the next 2 years.
The “fuel charge” for Georgia Power’s customers will drop 17%, or about $10 per month for the average customer, as reported by Dave Williams of the Capitol Beat News Service. The reduction was agreed upon by the utility and the Public Service Commission, saving consumers $740 million.
“I’m very happy that we have a diverse energy mix that takes advantage of opportunities around renewables and low natural gas prices” said Public Service Commissioner Jason Shaw of the vote. ” This well balanced approach is paying dividends for Georgia Power Customers at a time when savings are desperately needed by so many who are struggling.”
The fuel charge is what customers pay for the energy to generate power, or the variable costs of electricity generation. This is separate from the “base charge” of a customer’s bill, which more closely resembles the utility’s fixed costs for plant and equipment.
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Charlie
Founder of GeorgiaPol.com; Now weekly columnist Very interested in Georgia and Georginas. Interest in politics is waning daily.
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“…takes advantage of opportunities around renewables and low natural gas prices”.
That wind-solar-green energy thingy mixed with low carbon emission national gas from that 2009 policy of using all types of energy while phasing out old coal burning plants is saving us money?
It’s definitely saving money on the fuel side, with respect to the switch from Coal to Nat Gas. The base charge went up late last year because the capital costs of these moves had to be paid for, as well as there have been much more storm clean up costs than normal over the past 3 years. Our PSC members have been adamant however that coal’s days have been numbered for some time. The continued environmental and regulatory burdens added to coal at the national level have moved it from the low-cost source to one that has an ever-increasing cost trendline.
My personal fear is that I’ve lived through 3 oil busts in my lifetime, and nat gas is a by-product of oil drilling. If the Saudi-Russia “fight” is allowed to shut down domestic oil production, the cost of nat gas could go up quickly and firmly.
Interesting. My monthly email from GA Power states my budget bill will go up in July another $12. Just in time to magically lower with this alleged new rate? Although being home for 2.5 months could mean using more electricity. Will have to compare usage to last year. And follow any rate drop if it appears on the bill.