Savannah Electric expects to file a request to reduce the small business tariff with the Georgia Public Service Commission (GPSC) on Monday, November 10, 1997. If approved, the new rate will lower the cost of electricity for small business customers while addressing the commission staff`s concerns about the Company`s earnings level.
The rate decrease is scheduled to go into effect with the first billing cycle of January 1998.
The $1 million small business rate reduction will improve the Company`s competitive position among this important class of customers.
Savannah Electric has lowered base rates for its customers several times over the past 12 years.
The small business rate is available to those commercial customers that have a demand of less than 250 kilowatts and energy usage less than 50,000
kilowatt-hours for each of the previous 12 months. Approximately 13,000 customers are currently on this rate.
In other action, the Company today requested an accounting order
from the GPSC. The filing, if approved, would establish new depreciation rates for corporate assets, allow the Company to increase the accrual to its storm damage reserves and provide a process to address the Company`s level of earnings in the future.
It is hoped that the commission will act on the two proposals before the end of the year.