Question

What products or services does Georgia Power Company provides and do you think prices would be higher or lower if there were 2 or more providers? please explain!

Answer 1

1 .Georgia Power is an electric utility headquartered in Atlanta, Georgia, United States. It was established as the Georgia Railway and Power Companyand began operations in 1902 running streetcars in Atlanta as a successor to the Atlanta Consolidated Street Railway Company
Georgia Power is the largest of the four electric utilities that are owned and operated by Southern Company. Georgia Power is an investor-owned, tax-paying public utility that serves more than 2.4 million customers in all but four of Georgia's 159 counties. It employs approximately 9,000 workers throughout the state.

Products and services offered:

• HVAC and chiller upgrades
• Heating and boiler systems
• Central plants
• Lighting retrofits
• System optimization
• Controls
• Motor and pump replacements
• Water conservation

• Compressed-air systems
• Solar and solar water heating
• Audits (high-level to investment-grade)
• Energy consulting services; detailed design (all disciplines)
• Project management and site supervision
• Arrange for highly competitive financing on projects due to Georgia Power's financial strength
• Training (including operating and maintenance training)
• Commissioning of systems and equipment
• Retro-commissioning/recommissioning
• Construction services

2. Georgia Power is by far the largest electrical provider within a deeply regulated market and is a monopoly protected by state legislation. In balance with its monopoly on electricity provision, the Public Service Commission regulates Georgia Power. This is the most extreme, but not the most common, example of market power. A monopoly is a market with only one seller. A monopolist is free to set prices or production quantities, but not both because he faces a downward-sloping demand curve. He cannot have a high price and a high quantity of sales – if he has a high price, people will buy less. Having multiple service providers would definitely be of really great help to the consumers and have an impact on the price as well as there would be competition amongst the providers.