Georgia Power Seeks to Invest Nearly $7 billion in Transmission, Distribution Over Next Three Years
June 28, 2022 -- Georgia Power this week filed a request with the Georgia Public Service Commission (PSC) that would enable the company to continue making investments in strengthening and further securing the electric grid, transforming its power generation to include cleaner and more economical energy resources and continue improving the customer experience.
'We take our responsibility to plan, prepare and make the investments needed to meet our customers' energy needs today, tomorrow and for years to come seriously, and Georgia Power's request to the Georgia Public Service Commission today outlines and supports that focus,' said Chris Womack, chairman, president and CEO of Georgia Power. 'As our state continues to grow and the energy landscape rapidly evolves, we recognize and respect our customers' focus on the reliability and resiliency of Georgia's electric system, the expansion of our clean energy resources and Georgia Power's continued ability to safely and reliably meet their energy needs. This request reinforces our commitment to meeting those needs while continuing to provide clean, safe, reliable and affordable energy for generations of Georgians.'
The request supports Georgia Power's focus on the following:
- Strengthening the electric grid through investments in the company's transmission and distribution systems and the continuation of its Grid Investment Plan (GIP) to support customers' long-term reliability and resiliency needs. Many of these investments are required to protect the reliability and resiliency of the electric grid.
- Transforming how it makes energy, including the continued transition of the company's power generation to cleaner and more economical resources for customers, including renewables such as solar.
- Enhancing operations and improving customer experience through investments in technology that will help enable Georgia Power to continue delivering exceptional service to customers while meeting their evolving energy needs.
If approved, Georgia Power notes that customer rates would increase a total of just under 12% over the next three years, which is lower than the current projected rate of inflation. As outlined in the filing, the typical residential customer using 1,000 kilowatthours per month would see an increase of $14.32 per month on their bill in 2023, $1.35 per month in 2024 and $0.62 per month in 2025, for a total increase of $16.29 over the three-year period. The company has helped offset the rising cost of doing business through reduced operating costs, managing storm cost recovery and making smart financing decisions.
Strengthening the Electric Grid
Georgia Power reports that it is continuously investing in the power grid to make it smarter and more reliable, and the recent filing looks to continue those efforts. Over the next three years, the company expects to invest nearly $7 billion more in transmission and distribution improvements, including $2.2 billion in the company's on-going multi-year GIP.
Over the past ten years, Georgia Power has invested nearly $10 billion to strengthen the reliability and resiliency of its network. This amount includes approximately $4.9 billion invested in transmission and distribution infrastructure since January 2020 and projected through December 2022, of which $1.5 billion relates to the company's GIP. Examples of critical investments the company has made and look to continue include:
- deploying advanced control and monitoring technologies, including additional self-healing distribution networks, to enhance the company's ability to sectionalize parts of the electric grid to isolate issues and reroute power to serve customers;
- replacing framing hardware to improve insulation levels and protect equipment; and
- enhancing substations, replacing transformers and moving powerlines underground.
The company states that these investments have improved reliability, reduced both the number and duration of outages, minimized repair time and contributed to a better customer experience. The investments proposed in this request are a continuation of these enhancements that have increased reliability.
Investing in Renewables and Cleaner Energy Resources
As presented in the company's 2022 Integrated Resource Plan (IRP) filed earlier this year, Georgia Power is looking to continue transforming how it produces energy, transitioning its power generation fleet to more economical and cleaner generation resources that will produce significant, long-term benefits for customers. The company is deploying new and expanded resources in solar, wind, hydro and energy storage to continue reducing carbon emission. This rate request would support that transformation and the proposed retirement of approximately 3,600 megawatts of coal- and oil-fired generation by 2028, replacing it with more economical generation and supporting investment in the transmission infrastructure necessary to facilitate the continued growth of renewables and to provide customers access to these lower cost and lower-carbon emitting resources.
To support the transition, Georgia Power notes that it will continue serving customers with a diverse, balanced generation fleet of reliable, resilient and economical resources, which includes adding cost-effective renewable resources. Working within the state's constructive regulatory framework, Georgia Power has continued developing renewable resources in a way that benefits customers, positioning the company as a national leader in renewable energy growth. Georgia Power currently has one of the largest voluntary renewable portfolios in the country, with more than 3,100 MW of renewable resources already online and an additional 2,400 MW under development. The company is also planning to double its renewable generation by adding 6,000 MW by 2035, which includes a request for approval of 2,300 MW* in its 2022 IRP. This new capacity would expand the company's renewable resource portfolio to approximately 11,500 MW by 2035.
The addition of these renewable resources and the retirement of uneconomic coal- and oil-fired units will enable Georgia Power to continue to operate its generation fleet efficiently, reliably and affordably for customers. More about Georgia Power's energy plans for the future is available at www.GeorgiaPower.com/IRP.
Enhancing the Customer Experience
Georgia Power reports that it is focused on continuously improving for the benefit of customers, including enhancing how customers can communicate with the company, pay their bills and manage their energy usage. In response to customers' changing preferences, the company has enhanced customer communications and provided additional and more flexible payment options, enrolling nearly 500,000 customers in outage alerts, eliminating credit and debit card payments fees, increasing the number of Authorized Payment Locations across the state, extending the bill payment timeframe by five days and more.
Over the next three years, Georgia Power will continue this focus and plans to invest nearly $700 million in technologies that will enhance operations and benefit customers. These include:
- Customer Information System (CIS) – Implementation of a new CIS will integrate customer information into a single platform that enables customer service employees to quickly access customer information, thereby allowing them to provide customers with more comprehensive and timely solutions.
- Distributed Energy Resource Management System (DERMS) – DERMS is an integrated software resource platform that offers real-time visibility into the impact of distributed energy resources on the electric system and allows for enhanced monitoring and operational capabilities. A robust DERMS platform will enable Georgia Power to integrate distributed energy resources with both system and fleet operations.
- Technologies to support the continued electrification of transportation – Over the next three years, Georgia Power will increase investments in community electric vehicle (EV) charging facilities and necessary electric transportation infrastructure upgrades to support customer EV charging. In addition to these capital infrastructure upgrades, the rate request continues various rebates for homebuilders and residential and commercial customers to accommodate growth in EV charging across the state.
Additionally, the company notes that it is working on developing an enhanced mobile app that will simplify mobile transactions, provide direct communications with customers impacted by service outages and notify customers regarding company offerings for which they qualify. Georgia Power is also developing a virtual platform that will help customers by answering general questions and processing a variety of customer transactions and plans to release a digital wallet option later this year, which will allow customers to make payments conveniently from their mobile devices.
Rate Case Process
This week's filing initiates a series of additional filings and public hearings with the Georgia PSC. At the conclusion of this process, the Georgia PSC is expected to vote on the company's rate case in December. The request seeks to continue the investments approved in Georgia Power's 2019 Rate Case. If approved, the proposed rates would take effect beginning January 1, 2023.
* REC Disclaimer: Georgia Power purchases only the null energy output from some renewable generating facilities that have contracted to sell that energy to Georgia Power. Ownership of the associated renewable energy credits (RECs) is specified in each respective power purchase agreement. The party that owns the RECs retains the right to use them.
Source: Georgia Power | PRNewswire
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