Www.fmglaw.com What do all those numbers mean on my electric bill? Managing utility costs.

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What do all those numbers mean on my electric bill? Managing utility costs


Managing your utility expenses

• What is happening to utility costs

• Understanding your electric bill

• Steps you can take to reduce your electric bill


What is happening to utility costs at the wholesale level

• Natural gas prices are at historic low levels

• Coal prices are declining

• Electric prices will continue to rise for the next several years due to new federal regulations and large capital construction projects in Georgia; Vogtle Units 3 and 4, emission control baghouses on coal plants, etc.

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NYMEX Monthly Natural Gas Costs2000 to 2012


NYMEX Natural Gas Costs

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NYMEX Coal Future Prices


Georgia Power rates have steadily increased since 2005

• 2005 rate case increase of $194 million (Docket No. 18300)

• 2008 rate case increase of $321 million (Docket No. 25060)

• 2010 rate case increase of $1,152 billion (Docket No. 31958)

• 2013 rate case?• Plant Vogtle Units 3 and 4 construction

costs?• Emission control expenses for coal plants?


The major cost drivers for Georgia Power customers

• Implementation of Federal Maximum Available Control Technology/Hazardous Air Pollutants (MACT) rule

• 2013 rate case and Integrated Resource Planning (IRP) case

• Plant Vogtle Units 3 and 4– GP has a 45.7% interest in the two units– Current certified cost of $14 billion– Possible $875 million in cost increases


Understanding your utility bill

• Review your bill

• What rate or tariff are you on?

• Computing your actual cost per kilowatt hour by subtracting the sales tax and franchise fees from the gross amount of your bill and dividing by the kilowatt hours used


Riders on your electric bill

• Demand Side Management Rider (1.0795% for commercial customers)

• Environmental Compliance Cost Recovery Rider (10.0131% to be increased in November 2012)

• Nuclear Construction Cost Recovery Rider (6.4362%)

• Total amount of commercial bill - 17.5288%


Managing utility expenses

• Review your electric bill and get a detailed statement

• Check with your electric utility to find out if there are better rates you could be on

• Take advantage of free energy audits and rebate programs

• Look at ways to conserve energy and evaluate whether they are cost effective

• Check to see if your utility offers bi-directional metering


The advantages of renewable energy

• No fuel costs• No water usage for cooling• No emissions (NOX, SOX, carbon)• No waste disposal such as spent nuclear

fuel or coal ash


Electric rate trends for the future

• Electric rates will continue to rise for the next several years due to major capital projects

• Utilities will become more dependent upon natural gas for generation

• More coal plants will be retired due to stricter emission guidelines

• Renewable generation will become more cost competitive due to improvements in technology and increased costs for traditional generation


Thank you for your attention

Robert B. [email protected]

Www.fmglaw.com What do all those numbers mean on my electric bill? Managing utility costs.

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