This afternoon, Savannah Electric filed a request for reconsideration from the Georgia Public Service Commission (GPSC) on a portion of the recent order regarding its Fuel Cost Recovery Allowance. The reconsideration request is being made in hopes of clarifying certain complex changes related to handling a particular type of forward energy purchase.
In the order approved April 30, the Commission stated that their intention was for these changes to only apply prospectively, or for the future. Of primary concern, however, is the need to clarify treatment of such energy purchases already contracted by Savannah Electric to meet customers energy needs during peak demand periods this summer.
A clarification or change in this order as requested by Savannah Electric may or may not result in an immediate change in the Fuel Cost Recovery Allowance that customers pay.
Savannah Electric believes the presentation of its fuel case was based on sound analysis and reflected a conservative approach to the short-term market conditions currently being experienced in the energy industry. However, the company has elected not to ask the GPSC for reconsideration of other areas of disagreement.
Under Georgia law, recovery of the cost and expense of fuel used to generate electricity is determined by the GPSC through a Fuel Cost Recovery Allowance. Electric utilities are not allowed a mark-up or profit on the fuel allowance.
Savannah Electric, a subsidiary of Southern Company, serves over 132,000 customers in a five-county area of Southeast Georgia.