Columbus, Georgia

Agenda Item# 1



Columbus Consolidated Government

Council Meeting



10/04/2005



Agenda Report # 41



TO: Mayor and Council



SUBJECT: Georgia Power Real Time Pricing (RTP) Conversion



INITIATED BY: Department of Public Services

________________________________________________________________________



Recommendation: Approval is requested to enter into a contract with Georgia

Power to change the current power pricing from Power and Light rate to RTP rate

at the County Jail and Muscogee County Prison.



Background: Georgia Power provides electric service to the Prison at 7175

Sacerdote Lane and the Jail at 700 Tenth Street. Both services are currently

billed under Georgia Power Company's Power and Light rate, which is typical for

these types of buildings. During the 2004 Georgia Power Rate Case, the Georgia

Public Service Commission allowed certain commercial customers to convert to

Georgia Power Company's Real Time Pricing (RTP) rate (Docket 18300-U). The

prison and jail both qualify for the RTP conversion. The RTP rate allows a

portion of the facility's electric usage to be charged at Georgia Power's

marginal rate, which is less expensive than the Power and Light rate in most

situations. The Georgia Public Service Commission ruled that 20% of the

existing load at the prison and jail could be converted to RTP while the other

80% would remain at the Power and Light rate. Any additional electric usage at

those facilities would be at the RTP rate.



Analysis: Georgia Power has estimated the cost savings to the prison and jail

if they were to convert to the RTP rate. The prison would save approximately

$5,300 per year and the jail would save approximately $17,900 per year.

Changing to the RTP would require a one-year commitment. After the initial one

year, we would be able to go back to the old rate if we were not satisfied with

RTP. According to Georgia Power, it is very rare for their customers to go

back to their old rate.



Financial Considerations: Currently, we have three accounts that are on

Georgia Power's RTP rate; the Government Center, the Civic Center and the

Public Safety Building. According to Georgia Power, over the last three years

the following RTP savings have been realized:



2002 2003 2004 TOTAL

Government Center $6,617 $13,438 $32,985 $53,040

Civic Center $82,065 $84,875 $103,635 $270,575

Public Safety Bldg $30,569 $28,449 $25,672 $84,690



Legal Consideration: The Georgia Public Service Commission has allowed Georgia

Power Company to determine the length of time qualifying customers could

convert to Real Time Pricing.