Georgia Power Co. customers will get a reduction of $5.32 on the average monthly electric bill after the state Public Service Commission (PSC) voted Thursday to lower the Atlanta-based utility’s fuel recovery costs.
The PSC and Georgia Power agreed on a two-year plan that will reduce fuel rates by 17.2%, for a total of about $740 million. The new rates take effect June 1.
In addition, a special interim reduction on fuel rates this summer will lower the typical customer’s bill by $10.26 per month through September.
“We saw an opportunity to … provide additional relief to customers navigating the impacts of COVID-19 this summer,” said Paul Bowers, chairman, president and CEO of Georgia Power.
The reduction in the company’s fuel rate is driven primarily by lower natural gas prices as a result of increased natural gas supplies.
Fuel rates are set separately from base rates. The commission approved an increase in base rates for Georgia Power last December, raising its basic service fee for residential customer from $10 to $14 a month through 2022.
The utility’s last fuel rate adjustment was in 2016.