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.