$330 million in new bill credits for customers from new tax laws over the next two years
ATLANTA, Oct. 3, 2018 /PRNewswire/ -- The first of three refunds associated with the Tax Cuts and Jobs Act of 2017 will be applied directly to Georgia Power customers' bills in October. These refunds are a result of the reduction in Georgia Power's federal corporate tax rate from 35% down to 21%. Customers will receive the refunds based upon energy consumption from January through August 2018. The typical residential customer using an average of 1,000 kilowatt-hours per month would receive a refund of nearly $28 on their Georgia Power October bill.
"At Georgia Power, we work every day to provide the best value to our customers not only in customer service, but in delivering clean, safe, reliable and affordable energy with rates below the national average," said Kevin Kastner, vice president of customer service for Georgia Power. "We are excited to let customers know about more bill credits coming their way in addition to other credits already received on their Georgia Power bills this year."
The Tax Cuts and Jobs Act benefits were confirmed in March as part of an agreement with Georgia Public Service Commission (PSC) Staff. In total, Georgia Power will provide three separate refunds to customers that will total $330 million. This first refund of $131 million is being issued in October 2018, with the subsequent refunds scheduled for June 2019 and February 2020. In addition to the $330 million in direct credits, customers are saving approximately $130 million in reduced taxes on financing costs for the Vogtle nuclear expansion in 2018. The company and PSC Staff also identified another approximately $700 million in future benefits that will be addressed in the company's next base rate case in 2019.
In addition, a total of $75 in 2018 bill credits, or $188 million overall, was approved by the Georgia PSC as part of its order to continue construction of Vogtle 3 & 4 in December 2017. Georgia Power customers received three separate $25 credits in 2018 with the third and final $25 credit appearing in September bills. The credits are a direct result of parent guarantee payments for the Vogtle project from Toshiba available due to the strength of the original contract for the project and protections in place for Georgia electric customers.
To learn more about Georgia Power's commitment to safe, clean, reliable and affordable energy, 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 expected future customer benefits. 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, Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, 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 rate actions relating to fuel and other cost recovery mechanisms; 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 foreign 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.
SOURCE Georgia Power
For further information: Georgia Power Media Relations, (404) 506-7676 or (800) 282-1696, www.georgiapower.com