Commission stays firm on energy rates

As posted on June 18, 2008 on The Florida Times-Union

ATLANTA - A divided Public Service Commission on Tuesday rebuffed manufacturers' pleas to reconsider a decision against electricity rates that would rise and fall with seasonal demand.

Commissioners voted 3-2 in May not to take up the issue of allowing Georgia Power to charge seasonal rates for the coal and natural gas used to generate electricity.

Manufacturers said fuel costs rise in summer because residential customers use more energy for air conditioning, while manufacturers' usage remains relatively the same.

A consultant for manufacturers said seasonal rates would add 8 cents to standard residential bills, on average for 12 months.

The Consumers' Utility Counsel, which represents ratepayers, said seasonal rates would unfairly shift about $2.5 million worth of fuel costs from industrial manufacturers to residential customers.

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