Item 8.01 Other Events. OnOctober 13, 2021 ,Georgia Power Company ("Georgia Power ") and the Public Interest Advocacy staff ("PIA Staff") reached a stipulation to resolve and settleGeorgia Power's application filed with theGeorgia Public Service Commission ("PSC") onJune 15, 2021 to adjust retail base rates, effective the month after Plant Vogtle Unit 3 ("Unit 3") goes in service, to include the portion of costs related to its investment in Unit 3 and common facilities shared between Plant Vogtle Units 3 and 4 ("Common Facilities") previously deemed prudent by the Georgia PSC ($2.38 billion ), as well as the related costs of operation (the "Settlement Agreement"). Under the terms of the Settlement Agreement,Georgia Power's application will be accepted as filed, with the following modifications.Georgia Power will include in rate base$2.1 billion of the$2.38 billion previously deemed prudent by the Georgia PSC and will recover the related depreciation expense, calculated using PIA Staff's proposed depreciation rate, through retail base rates. Financing costs on the remaining portion of the total Unit 3 and Common Facilities construction costs will continue to be recovered through the Nuclear Construction Cost Recovery ("NCCR") tariff or deferred.Georgia Power will defer as a regulatory asset the remaining depreciation expense (approximately$38 million annually) until Unit 4 costs are placed in retail base rates. The increase in retail base rates under the Settlement Agreement also includes recovery of all projected operations and maintenance expenses for Unit 3 and Common Facilities and other related costs of operation, partially offset by the related production tax credits.Georgia Power expects to increase its annual rates approximately$302 million to be effective the month after Unit 3 is placed in service. This increase will be partially offset by a decrease in the NCCR tariff of approximately$78 million expected to be effectiveJanuary 1, 2022 . The Georgia PSC is scheduled to issue a final order in this proceeding onNovember 2, 2021 . Accordingly, the terms of the Settlement Agreement are subject to change and the terms of any final agreement approved by the Georgia PSC may differ materially from the terms of the Settlement Agreement. The ultimate outcome of this matter cannot be determined at this time.
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