Savannah Electric today filed a request with the Georgia Public Service Commission (GPSC) to raise its fuel cost recovery (FCR) allowance this fall. The adjustment is needed to cover the dramatic increase in the market price of natural gas and coal used to generate electricity.

Under Georgia law, the expenses for fuel used to generate electricity must be approved by the GPSC. The fuel allowance can only cover this cost and expense. Electric utilities are not allowed a mark-up or profit on the FCR allowance.

If approved, the new allowance will become effective the first billing cycle in November. The increase applies to all customer classes. Individual bills will vary based on usage, but a typical residential customer using 1200 kilowatt-hours (kwh) per month can expect to see an average increase of 13.5 percent.

Savannah Electric significantly reduced the fuel allowance in 2002. The last fuel increase was in 2001.

The company uses more natural gas to generate electricity today than in the past due to the environmental and operating characteristics -- as well as the historically low overall cost -- of gas. In the past, Savannah Electric’s coal-based generation and purchased power has helped to balance fuel volatility, but since late 2003, coal prices have risen steeply as well.

With this filing, Savannah Electric is proposing a redesigned “block” structure for residential customers. Currently, all kilowatt-hours are billed using a fixed rate for fuel. With the new design, the first 750 kwh used would be billed at one rate, while all additional kwh are billed at a slightly higher rate. This measure is intended to encourage energy efficiency.

The company encourages the wise use of electricity by all customers. According to the government’s Energy Star program, implementing recommended energy efficiency measures can save up to 30 percent. Even customers in highly efficient homes can save by changing energy usage habits. Tips for both cases appear on the attached page. In addition, efficiency information is often included in customer bill inserts and can be found at www.savannahelectric.com or by contacting the company at 1-800-437-3890.

Other programs such as Budget Billing, a “time-of-use fuel rate” and a Senior Citizen’s Low-Income discount are also available to eligible customers.

Savannah Electric, a subsidiary of Southern Company, serves 140,000 customers in a five-county area of Southeast Georgia.

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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:

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.

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.

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