The utility says it needs the marginal rate increase to pay for a new construction phase that comprises 5,500 megawatts of new generation over the next five years; 300 miles of new transmission valued at $1.4 billion; and expenses of $875 million on environmental controls.

"Those costs have resulted in a capital spending budget of $1.6 billion in 2001," Georgia Power president/CEO David Ratcliffe says in a prepared statement. "Those costs need to be added to the rate base."

However, the company is willing to waive its rate increase request if the Public Service Commission will allow Georgia Pacific to continue operating with an earnings band, as it has for the last six years, and earn the 11% to 13.% ROE.