ATLANTA, March 6, 2018 /PRNewswire/ -- Georgia Power has
completed an assessment of the impact of the Tax Cuts and Jobs Act
for the company – including approximately $1.2 billion in benefits for customers. The
benefits were confirmed as part of an agreement with Georgia Public
Service Commission (PSC) Staff and include approximately
$130 million in reduced taxes on
financing costs for the Vogtle nuclear expansion; $330 million in direct credits to customers as a
result of lower federal income tax rates over the next two years
and approximately $700 million in
future benefits to be addressed in the company's next base rate
case in 2019, which also includes the benefits of last week's
reduction in state of Georgia
income tax rates. If approved by the Georgia PSC, the typical
residential customer using an average of 1,000 kilowatt-hours per
month could receive approximately $70 in refunds over the
two-year period.
"We are committed to offering the highest customer value with
rates below the national average, and we're pleased to be able to
continue to pass the benefits of the new tax laws on to our
customers," said Paul Bowers,
chairman, president and CEO of Georgia Power. "We appreciate the
collaborative effort with Georgia PSC Staff to evaluate the new tax
laws and reach a joint agreement, which we hope the Commission will
review and approve as the best way to deliver benefits to customers
as quickly as possible."
Today's announcement marks the second substantial, positive
impact for Georgia Power customers tied to the new tax laws. In
January, Georgia Power announced that customers would pay
$139 million less than expected in
2018 for the Vogtle nuclear expansion currently under construction
due to changes in federal tax laws and full receipt of the Toshiba
parent guarantee payments. Beginning in April, the typical
residential customer using 1,000 kilowatt-hours per month will pay
$2.70 less than expected per month in
financing costs for the Vogtle project. Additionally, Georgia Power
bill credits totaling $188 million
were approved by the Georgia PSC as part of its order to continue
construction of Vogtle 3 & 4 as a direct result of the Toshiba
parent guarantee payments for the Vogtle project. The credits,
amounting to $75 per individual
customer, will be distributed across three separate Georgia Power
bills in 2018, with the first $25
credit appearing in the coming months.
Georgia Power is currently authorized by the Georgia PSC to earn
a return on equity (ROE) of 10 percent to 12 percent per year. The
company works to efficiently manage its business while providing
customers with reliable and affordable service and recently
announced a 2018 refund of $43.6
million attributed to the company earning above its allowed
range in 2016. Refunds are currently in progress and typical
residential customers can expect to see a credit of approximately
$9.50 on Georgia Power bills issued
in March.
To learn more about how Georgia Power is delivering reliable and
affordable energy for millions of Georgians, while keeping energy
costs as low as possible, visit www.GeorgiaPower.com.
About Georgia Power
Georgia Power is the largest
electric subsidiary of Southern Company (NYSE: SO), America's
premier energy company. Value, Reliability, Customer Service and
Stewardship are the cornerstones of the company's promise to 2.5
million customers in all but four of Georgia's 159 counties. Committed to
delivering clean, safe, reliable and affordable energy at rates
below the national average, Georgia Power maintains a diverse,
innovative generation mix that includes nuclear, coal and natural
gas, as well as renewables such as solar, hydroelectric and wind.
Georgia Power focuses on delivering world-class service to its
customers every day and the company is consistently recognized by
J.D. Power and Associates as an industry leader in customer
satisfaction. For more information, visit
www.GeorgiaPower.com and connect with the company on Facebook
(Facebook.com/GeorgiaPower), Twitter (Twitter.com/GeorgiaPower) and
Instagram (Instagram.com/ga_power).
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this
communication is forward-looking information based on current
expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things,
statements concerning the agreement with the Georgia PSC staff.
Georgia Power cautions that there are certain factors that could
cause actual results to differ materially from the forward-looking
information that has been provided. The reader is cautioned not to
put undue reliance on this forward-looking information, which is
not a guarantee of future performance and is subject to a number of
uncertainties and other factors, many of which are outside the
control of Georgia Power; accordingly, there can be no assurance
that such suggested results will be realized. The following
factors, in addition to those discussed in Georgia Power's Annual Report on Form 10-K for
the year ended December 31, 2017, and
subsequent securities filings, could cause actual results to differ
materially from management expectations as suggested by such
forward-looking information: the uncertainty surrounding recently
enacted tax reform legislation, including implementing regulations
and Internal Revenue Service interpretations, actions that may be
taken in response by regulatory authorities, and its impact, if
any, on the credit ratings of Georgia Power; state and federal rate
regulations and the impact of pending and future rate cases and
negotiations, including those related to the agreement with the
Georgia PSC staff; changes in Georgia Power's credit ratings, including
impacts on interest rates, access to capital markets, and
collateral requirements; and the impacts of any sovereign financial
issues, including impacts on interest rates, access to capital
markets, impacts on currency exchange rates, counterparty
performance, and the economy in general, as well as potential
impacts on the benefits of U.S. Department of Energy loan
guarantees. Georgia Power expressly disclaims any obligation to
update any forward-looking information.
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SOURCE Georgia Power