Georgia Power today filed a request with the Georgia Public Service Commission (PSC) to reduce fuel rates by 19 percent and total annual billings by approximately $567 million.

That equates to a savings of approximately $8 or 6 percent on the total monthly bill of a typical residential customer averaging 1,000 kilowatt-hours (kWh). The proposed decrease will more than offset the base rate increase that residential customers will incur this year.

"Our first focus is to ensure our customers and the communities we serve have safe, clean, affordable and reliable energy," said Georgia Power President and CEO Paul Bowers. "We have continued to invest in new nuclear, natural gas, renewables and energy efficiency, and our customers are receiving the full benefit of this diverse fuel mix."

The decrease in fuel costs was primarily driven by lower natural gas prices as a result of increased natural gas supplies. Other contributing factors were lower demand for electricity, coupled with mild weather.

By March 31, 2012, the company expects to eliminate its under-recovered fuel balance. And to reflect lower projected fuel costs, the company is proposing to lower the average total fuel rate from 4.2930 cents per kWh to 3.4900 cents per kWh.

Georgia Power customers also benefit from fuel savings due to lower projected natural gas prices as the company's new natural gas units at Plant McDonough-Atkinson continue to be placed into service.

Fuel rates are set separately from base rates. Georgia law prohibits the company from earning a profit on fuel, while allowing recovery of all prudently incurred fuel costs.

The PSC will conduct public hearings on June 7-8, 2012, with a final decision expected on June 21, 2012. If approved, the new fuel rates will begin July 1, 2012.