Georgia Public Service Commission considers rate increase for Georgia Power

The Georgia Public Service Commission began another round of hearings this week focusing on how to finance the construction of two new nuclear reactors at the Plant Vogtle power plant in eastern Georgia.

At issue...whether to let Georgia Power raise utility rates sooner, rather than later, to pay for two new nuclear reactors in Burke County, near Waynesboro.

Georgia Power says a rate increase beginning in 2011, while construction of the reactors is in progress, would cut billions of dollars in interest from construction costs.

The average residential utility customer, one whose power bill averages about $100 per month, would start off with an increase of $1.30 a month. The rates would increase each year, with those consumers paying at least $109 more a year by 2018.

"If you don't make any payments on the facility until it goes into service, then a large percentage of what our customers are going to be paying for is the accrual of interest," says Oscar Harper, a vice president at Georgia Power.

Harper estimates that increasing rates on the front end will save ratepayers money after the construction is completed.

But opponents of the reactors say that's risky, and unfair.

They held a press conference outside the PSC headquarters in Atlanta today.

"If you tried this is the competitive market, you'd be out of business instantly," says Neill Herring, a lobbyist and spokesman for the Georgia Sierra Club. "What if Kroger decided they wanted to charge more for groceries if they maybe wanted to build another store? You'd go to Publix. "Who do you go to if the power company does that?"

Construction on the proposed reactors would likely not begin before 2011, and that's only if federal officials approve it.

The hearings continue throughout most of the week.

The PSC will likely make its decision by March, although the state legislature can also vote on a rate increase.

For more information on the hearings, go to www.psc.state.ga.us.