A utility in the US has filed a proposal with state energy regulator to increase consumer energy tariffs by approximately 7%.
The aim is to raise enough capital required to modernise its grid network.
The energy tariffs will increase in 2020, if the proposal is approved. A consumer using 1,000 kilowatt-hours per month would see an increase of $9.78 per month on their bill.
Increasing the tariffs will allow Georgia Power to strengthen the resiliency of grid network against storms.
Customers of Georgia Power have experienced severe outages after more than 50 weather events such as Hurricanes Michael, Irma and Matthew hit the utility’s service territories.
The storms depleted the utility’s storm restoration fund and created an additional $450 million in restoration costs not currently covered in rates.
Some of the capital to be raised will be directed to storm restoration and environmental compliance programmes.
Since 2013, Georgia Power has invested more than $2 billion in environmental compliance programmes to meet state and federal environmental requirements.
Georgia Power has over the past six years invested more than $4.1 billion in expanding transmission and distribution infrastructure, plans to invest an additional $1.3 billion in a grid investment plan over the next three years.
The utility will use the capital raised to expand its portfolio of renewable energy, as a measure to reduce its carbon emissions and to provide consumers with affordable energy.
Georgia Power’s prices are 16% below the national average and residential customers currently pay less than $1 more per month today than they did in 2011. Georgia Power has not had a rate case filing in the last six years.
Georgia Power plans to have more than 4,750 MW of renewable energy resources in its portfolio by the end of 2024, from 1,500 resources online todate.
Georgia Power is also seeking approval through the IRP process to own and operate 80 MW of battery energy storage systems, which are critical to maximizing the value of renewable energy resources.