Georgia Power customers to pay $139 million less for Vogtle expansion in 2018
Georgia Power filed an update recently with the Georgia Public Service Commission (PSC) for the Nuclear Construction Cost Recovery (NCCR) tariff that reduces its customer’s payment for the Plant Vogtle expansion by $139 million in 2018.
Beginning in April, a residential customer using 1,000 kilowatt-hours (kWh) per month will pay $2.70 less per month than the previous amount.
The savings are the results of the recent changes to federal tax law and the receipt of the full amount of parent guarantee payments from Toshiba. The company will continue to evaluate the impacts of updated federal tax law and plans to file a report with the Georgia PSC by Feb. 20.
The Toshiba parent guarantee payments resulted in the approval of $188 million in bill credits, $75 each for individual customers. Georgia Power will distribute the credits across three separate bills in 2018.
Georgia Power also expects to return $43.6 million to customers in 2018 that the company earned above its allowed earnings range in 2016. The company and the Georgia PSC are also working to determine timing and details of the refund. Georgia Power is permitted to earn a return on equity (ROE) of 10 to 12 percent each year and must refund two-thirds of earnings over 12 percent back to customers.
“Today, after including these savings, anticipated customer benefits from federal production tax credits, interest savings from loan guarantees from the DOE and the fuel savings of nuclear energy, the projected peak rate impact to Georgia Power retail customers is well below original projections of approximately 12 percent with 5 percent related to the project already in rates,” Georgia Power said in its statement last week.
