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What do all those numbers mean on my electric bill? Managing utility costs
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Managing your utility expenses
• What is happening to utility costs
• Understanding your electric bill
• Steps you can take to reduce your electric bill
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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
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NYMEX Natural Gas Costs
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NYMEX Coal Future Prices
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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?
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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
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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
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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%
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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
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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
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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