Savannah Electric today initiated a Base Rate Case with the Georgia Public Service Commission (GPSC). The last time Savannah Electric filed a base rate case was three years ago.

It is important to note that this filing simply begins a six-month process of filings, hearings, testimony and cross examination that is required before a regulated electric company may change its prices. A decision from the GPSC is not expected before May of 2005.

Based on current estimates from the company’s request, a typical residential customer using 1200 kwh a month would see an increase from around $109 to $118.60 or 8.8 percent, on average. This figure includes a requested increase in the base facilities charge from $7 to $10. Increases are requested for residential, commercial and industrial customers.

Savannah Electric is also asking for a larger discount for eligible low-income, senior citizens. If adopted, the monthly discount would increase three dollars, from $10.50 to $13.50.

The Savannah area has experienced steady economic growth since the company’s last rate case. In just three years, Savannah Electric has provided service to almost 9,000 new customers and peak summer demand increased by 100,000 kilowatts. The company built more new substations in the past several years than in the previous decade.

Surging demand and rapid growth can put strains on electrical systems. Savannah Electric -- with the oversight of the GPSC -- has planned and built for this growth and thus far avoided such problems.

Regulated utilities are obligated to make necessary infrastructure investments to maintain reliability to all customers. With GPSC approval, the company invested in 200 megawatts (mw) of highly efficient, low emission generation that will begin serving Savannah-area customers in June, 2005. The new power plant, at the site of our existing plant in Effingham County, is nearing the end of construction now. The company will also retire 100 mw of its oldest, highest cost generation.

Costs from a power supply contract, which the GPSC approved but deferred in our 2001 rate case, must now be recovered as well.

Other factors behind the rate case include: investments in new equipment and additional transmission facilities within the service area to enhance reliability for all customers; and dramatically higher costs for new federal regulatory compliance mandates.

As a reminder, rates are made up of two parts: a base rate and a fuel rate. The fuel rate goes up and down over time based on the market price of fuels used to generate electricity. In 2002 the GPSC approved a major fuel rate reduction. In today’s markets, the price of coal and natural gas are at record highs and resulted in a recent fuel cost recovery increase. After worldwide trends return to lower levels the company will be able to lower the fuel rate again. In the meantime, the company will continue looking for ways to save on fuel costs.

Savannah Electric will maintain rate options that offer price incentives to customers who can shift some of their electrical usage from higher cost to lower cost hours of the day. These plans are even available to residential and small business customers.

The company will continue to emphasize energy efficiency and existing payment options like budget billing that may help customers adjust to higher energy costs. A list of helpful efficiency tips is included with this release. Additional information, including a free energy survey, is available online at www.savannahelectric.com or by calling the company at 1-800-437-3890.

Savannah Electric, a subsidiary of Southern Company, serves over 140,000 customers in Chatham, Effingham, Bryan, Bulloch and Screven counties in Southeast Georgia.

###

Energy Efficiency Advice from Savannah Electric

Invest for long-term energy efficiency:

• When purchasing or replacing appliances, look for the Energy Star label. You can lock in energy savings for years to come.

• Investigate the need to have attic ductwork sealed. Loose joints and ducts mean you may be heating or cooling your attic or crawlspaces.

• Consider adding insulation to your home. Older homes, especially, can benefit from adding high R-value insulation to their attic. Make sure new homes are built to Good Cents standards with high R-value insulation in floors and walls as well.

• Make sure doors and windows seal properly with weather-stripping or caulking.

• Consider adding storm doors to reduce heat exchange and when building, use at least double-pane, energy efficient windows.

• Fix leaky hot water faucets.

• Have a reputable company maintain your heating and cooling system.

• Consider replacing large area incandescent lighting with high efficiency fluorescent fixtures. Replace other incandescent bulbs with long-lasting compact fluorescent bulbs.

-----------------

Simple habits and practices can save money too:

Winter practices:

• Clean or change your heating system’s air filter monthly

• Open drapes and blinds each day to let in the sun`s warmth. Close them after dark to hold in the heat.

• Use exhaust fans sparingly. Steam from cooking or bathing can add warmth and moisture to the home, improving comfort.

• In the winter, use ovens, dryers and dishwashers when the family is in living areas, such as early evening. The extra heat can help you use a lower thermostat setting.

• Run ceiling fans on low and reverse their direction to gently push warm air from the ceilings back to the floor.

• Make sure the fireplace flue is closed when not in use. A great deal of heat is lost up the chimney.

Summer practices:

• Clean or change your air conditioner’s air filter monthly

• Close blinds or drapes to help keep out the sun’s heat.

• Fans use little energy compared to air conditioners but move the air to make you feel cooler with a higher thermostat setting.

• Exhaust fans remove steam from cooking or bathing areas, but turn them off after steam is gone.

• Use large steam-producing appliances like washers, dryers and dishwashers in the early morning or at night. You will stay more comfortable and your cooling system will not work as hard.

• If you use air conditioning, keep household “in and out traffic” to a minimum.

• Consider the items you need from the refrigerator or freezer before opening the door.

• Use task lighting when possible instead of full-room lighting to lower costs and reduce heat build-up.

--------------

Finally, visit www.savannahelectric.com or call 1-800-437-3890 to take a free energy survey. We`ll provide suggestions customized for your home.