UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D. C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event
reported) December 21,
2010
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Commission
File Number
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Registrant,
State of Incorporation,
Address and Telephone
Number
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I.R.S.
Employer
Identification No.
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1-3526
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The
Southern Company
(A
Delaware Corporation)
30
Ivan Allen Jr. Boulevard, N.W.
Atlanta,
Georgia 30308
(404)
506-5000
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58-0690070
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1-6468
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Georgia
Power Company
(A
Georgia Corporation)
241
Ralph McGill Boulevard, N.E.
Atlanta,
Georgia 30308
(404)
506-6526
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58-0257110
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The names
and addresses of the registrants have not changed since the last
report.
This
combined Form 8-K is filed separately by two registrants: The Southern Company
and Georgia Power Company. Information contained herein relating to
each registrant is filed by each registrant solely on its own
behalf. Each registrant makes no representation as to information
relating to the other registrant.
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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o
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Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
8.01.
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Other
Events.
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See MANAGEMENT’S DISCUSSION AND
ANALYSIS – FUTURE EARNINGS POTENTIAL – “State PSC Matters – Georgia Power Retail
Regulatory Matters – Rate Plans” of The Southern Company (“Southern Company”),
MANAGEMENT’S DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – “Georgia PSC
Matters – Rate Plans” of Georgia Power Company (“Georgia Power”) and Note (B)
under “State PSC Matters – Georgia Power – Rate Plans” to the Condensed
Financial Statements of Southern Company and Georgia Power in the Quarterly
Report on Form 10-Q for the quarter ended September 30, 2010 for information
regarding Georgia Power’s retail base rate proceeding with the Georgia Public
Service Commission (the “Georgia PSC”). For additional information,
see MANAGEMENT’S DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – “PSC
Matters – Georgia Power” of Southern Company and MANAGEMENT’S DISCUSSION AND
ANALYSIS – FUTURE EARNINGS POTENTIAL – “PSC Matters – Rate Plans” of Georgia
Power in Item 7 and Note 3 to the financial statements of Southern Company and
Georgia Power under “Retail Regulatory Matters – Georgia Power – Retail Rate
Plans” and “Retail Regulatory Matters – Rate Plans,” respectively, in Item 8 of
the Annual Report on Form 10-K for the fiscal year ended December 31,
2009.
On December 21, 2010, the Georgia PSC
voted to approve an Alternate Rate Plan for Georgia Power effective January 1,
2011 and continuing through December 31, 2013 (the “2010 ARP”). The
terms of the 2010 ARP reflect the settlement agreement (the “Settlement
Agreement”) among Georgia Power, the Georgia PSC’s Public Interest Advocacy
Staff (the “Staff”), and the Commercial Group, which was filed with the Georgia
PSC on November 19, 2010 and, subsequently, was also signed by the Association
for Fairness in Ratemaking, the Georgia Industrial Group, the Georgia
Traditional Manufacturers Association, Kgen Power Management, Metropolitan
Atlanta Rapid Transit Authority, Sterling Planet, and the United States
Department of Defense and all federal agencies (collectively with Georgia Power,
the Staff, and the Commercial Group, the “Stipulating Parties”).
Under the terms of the 2010 ARP,
effective January 1, 2011, Georgia Power will (1) increase the traditional base
tariff rates by approximately $347.2 million; (2) collect an additional $31.6
million through the Demand-Side Management (“DSM”) tariffs; (3) collect an
additional $167.8 million through the Environmental Compliance Cost Recovery
(“ECCR”) tariff; and (4) collect an additional 2.16% of Georgia Power’s total
revenues (or $15.7 million), through the Municipal Franchise Fee (“MFF”) tariff,
for a total increase in base revenues of approximately $562.3 million, or $10.76
per month for the typical residential customer.
Under the 2010 ARP, no separate
Certified Capacity Cost Recovery tariff will be created. However, the
following additional rate adjustments will be made to Georgia Power’s tariffs in
2012 and 2013:
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·
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Effective
January 1, 2012, the DSM tariffs will increase by $16.8
million;
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·
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Effective
April 1, 2012, the traditional base tariffs will increase to recover the
revenue requirements for the lesser of actual capital costs incurred or
the amounts certified by the Georgia PSC for Plant McDonough Units 4 and 5
for the period from commercial operation through December 31,
2013;
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·
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Effective
January 1, 2013, the DSM tariffs will increase by $17.9
million;
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·
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Effective
January 1, 2013, the traditional base tariffs will increase to recover the
revenue requirements for the lesser of actual capital costs incurred or
the amounts certified by the Georgia PSC for Plant McDonough Unit 6 for
the period from commercial operation through December 31, 2013;
and
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·
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The
MFF tariff will increase consistent with these
adjustments.
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Georgia Power currently estimates these
adjustments will result in base revenue increases of approximately $189.7
million in 2012 and $92.6 million in 2013, representing increases of
approximately $3.08 per month and $1.48 per month for the typical residential
customer in 2012 and 2013, respectively.
Under the 2010 ARP, Georgia Power’s
retail return on common equity (“ROE”) will be set at 11.15%, and earnings will
be evaluated against a retail ROE range of 10.25% to 12.25%. Two-thirds of any
earnings above 12.25% will be directly refunded to customers, with the remaining
one-third retained by Georgia Power. There will be no recovery of any
earnings shortfall below 10.25% on an actual basis and no separate Adjustable
Cost Recovery tariff will be created. However, if at any time during
the term of the 2010 ARP, Georgia Power projects that retail earnings will be
below 10.25% for any calendar year, it may petition the Georgia PSC for the
implementation of an Interim Cost Recovery (“ICR”) tariff to adjust Georgia
Power’s earnings back to a 10.25% ROE. The Georgia PSC will have 90
days to rule on any such request. If approved, any ICR tariff would
expire at the earlier of January 1, 2014 or the end of the calendar year in
which the ICR tariff becomes effective. In lieu of requesting
implementation of an ICR tariff, or if the Georgia PSC chooses not to implement
the ICR, Georgia Power may file a full rate case.
Except as provided above, Georgia Power
will not file for a general base rate increase while the 2010 ARP is in
effect. Georgia Power is required to file a general rate case by
July 1, 2013, in response to which the Georgia PSC would be expected to
determine whether the 2010 ARP should be continued, modified or
discontinued.
See MANAGEMENT’S DISCUSSION AND
ANALYSIS – FUTURE EARNINGS POTENTIAL – “Construction Projects”
of Southern Company, MANAGEMENT’S DISCUSSION AND ANALYSIS – FUTURE
EARNINGS POTENTIAL – “Construction – Nuclear” of Georgia Power and Note (B)
under “State PSC Matters – Georgia Power – Nuclear Construction” to the
Condensed Financial Statements of Southern Company and Georgia Power in the
Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 for
information regarding Georgia Power’s construction of Plant Vogtle Units 3 and
4, the Georgia Nuclear Energy Financing Act, and the Nuclear Construction Cost
Recovery (“NCCR”) tariff filing with the Georgia PSC. For additional
information, see MANAGEMENT’S DISCUSSION AND ANALYSIS – FUTURE EARNINGS
POTENTIAL – “Construction Program” of Southern Company and MANAGEMENT’S
DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – “Construction – Nuclear”
of Georgia Power in Item 7 and Note 3 to the financial statements of Southern
Company and Georgia Power under “Retail Regulatory Matters – Georgia Power –
Nuclear Construction” and “Construction – Nuclear,” respectively, in Item 8 of
the Annual Report on Form 10-K for the fiscal year ended December 31,
2009.
On December 21, 2010, the Georgia PSC
voted to approve Georgia Power’s NCCR tariff, as authorized under the Georgia
Nuclear Energy Financing Act. The tariff will become effective
January 1, 2011 to collect approximately $223 million of financing costs
associated with the construction of Plant Vogtle Units 3 and 4.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, each registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: December
21, 2010
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THE
SOUTHERN COMPANY
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By
/s/Melissa K. Caen
Melissa K. Caen
Assistant Secretary
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GEORGIA
POWER COMPANY
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By
/s/Melissa K. Caen
Melissa K. Caen
Assistant Secretary
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