Georgia Power customers to see credit on October bills
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The first of three refunds associated with the Tax Cuts and Jobs Act of 2017 will be applied directly to Georgia Power customers' bills in October. These refunds are a result of the reduction in GeorgiaPower's federal corporate tax rate from 35% down to 21%. Customers will receive the refunds based upon energy consumption from January through August 2018. The typical residential customer using an average of 1,000 kilowatt-hours per month would receive a refund of nearly $28 on their Georgia Power October bill.
"At Georgia Power, we work every day to provide the best value to our customers not only in customer service, but in delivering clean, safe, reliable and affordable energy with rates below the national average," said Kevin Kastner, vice president of customer service for Georgia Power. "We are excited to let customers know about more bill credits coming their way in addition to other credits already received on their Georgia Power bills this year."
The Tax Cuts and Jobs Act benefits were confirmed in March as part of an agreement with Georgia Public Service Commission (PSC) Staff. In total, Georgia Power will provide three separate refunds to customers that will total $330 million. This first refund of $131 million is being issued in October 2018, with the subsequent refunds scheduled for June 2019 and February 2020. In addition to the $330 million in direct credits, customers are saving approximately $130 million in reduced taxes on financing costs for the Vogtle nuclear expansion in 2018. The company and PSC Staff also identified another approximately $700 million in future benefits that will be addressed in the company's next base rate case in 2019.
In addition, a total of $75 in 2018 bill credits, or $188 million overall, was approved by the Georgia PSC as part of its order to continue construction of Vogtle 3 & 4 in December 2017. Georgia Power customers received three separate $25 credits in 2018 with the third and final $25 credit appearing in September bills. The credits are a direct result of parent guarantee payments for the Vogtle project from Toshiba available due to the strength of the original contract for the project and protections in place for Georgia electric customers.