For the second time this year, it looks like most Georgians’ power bills will drop as a result of Georgia Powers’ falling fuel prices.
The Atlanta electric utility said Wednesday that it expects to file a 15 percent lower fuel rate that, if approved by state regulators, would reduce the typical customer’s monthly bill by about $4.60.
Georgia Power said a bumper supply of natural gas because of the warm winter and other factors helped drive down the price of natural gas, one of its primary fuels. That in turn triggered the utility’s filing to charge lower fuel costs in customers’ bills.
Georgia Power said the lower rate will take effect June 1 if approved by the Georgia Public Service Commission.
That’s the second time this month and the third time this year that customers could be catching a break on their power bills.
Last week, Georgia Power agreed to a three-year freeze on customers' base electric rates as part of a settlement tied to the PSC's approval of plans by Georgia Power's parent company, Southern, to merge with natural gas utility AGL Resources, all of Atlanta.
Also, another natural gas-related rate reduction took effect in January for Georgia Power customers. Including that rate cut, the typical customer's monthly bill is expected to go down about $8.60 this year.
Of course, Georgia Power could also seek higher fuel charges in the future if natural gas prices rise again.
The spot market price for natural gas has dropped more than 60 percent over the past two years, according to Y Charts, as a boom in oil and gas well drilling resulted in a glut of crude oil and natural gas. That boom has since collapsed and crude oil prices have recovered to about $40 a barrel, from a recent low of $26.
But for now, the cost of natural gas is still falling.
About the Author
