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, 2004
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Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-6468 Georgia Power Company 58-0257110
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
. (404) 506-6526
The address of the registrant has not changed since the last report.
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:
[] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events.
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See Item 7 - Management's Discussion and Analysis - "Future Earnings
Potential - Other Matters" of Georgia Power Company ("Georgia Power") and Note 3
to the financial statements of Georgia Power under "Retail Rate Orders" in Item
8 of the Annual Report on Form 10-K for the year ended December 31, 2003 and
Note (I) to the Condensed Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2004, for information on Georgia
Power's existing retail rate order and its rate increase request filed with the
Georgia Public Service Commission ("Georgia PSC") in July 2004.
On December 21, 2004, the Georgia PSC voted to approve a new three-year
retail rate plan for Georgia Power ending December 31, 2007 ("2004 Plan"). Under
the terms of the 2004 Plan, earnings will be evaluated against a retail return
on common equity range of 10.25 percent to 12.25 percent. Two-thirds of any
earnings above 12.25 percent will be applied to rate refunds, with the remaining
one-third retained by Georgia Power. Retail rates will be increased by
approximately $194 million effective January 1, 2005 to cover the higher costs
of purchased power; operating and maintenance expenses; environmental
compliance; and continued investment in new generation, transmission and
distribution facilities to support growth and ensure reliability.
See Item 7 - Management's Discussion and Analysis - "Future Earnings
Potential - FERC Matters - Market-Based Rate Authority" of Georgia Power and
Note 3 to the financial statements of Georgia Power under "FERC Matters" in Item
8 of the Annual Report on Form 10-K for the year ended December 31, 2003 and
Note (J) to the Condensed Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2004, for information on the Plant
McIntosh construction project, which is jointly owned by Georgia Power and
Savannah Electric and Power Company. In the 2004 Plan, the Georgia PSC approved
the transfer of the Plant McIntosh construction project, which is scheduled for
completion in June 2005, at a total fair market value of approximately $385
million. This value reflects an approximate $16 million disallowance from the
total original transfer cost of approximately $401 million. This disallowance
will reduce Georgia Power's 2004 net income by approximately $8 million. The
Georgia PSC also certified the total completion cost of the project; thus, if
the actual cost exceeds the certified amount, additional disallowances may occur
upon completion. Under the 2004 Plan, the Plant McIntosh impact will be
reflected in rates evenly over the three years ending 2007.
Georgia Power will not file for a general base rate increase unless its
projected retail return on common equity falls below 10.25 percent. Georgia
Power is required to file a general rate case on July 1, 2007, in response to
which the Georgia PSC would be expected to determine whether the rate order
should be continued, modified or discontinued.
SIGNATURE
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: December 21, 2004 GEORGIA POWER COMPANY
By /s/Wayne Boston
Wayne Boston
Assistant Secretary