Fresh Loaf

Earlier this year, Georgia Power made themselves a bunch of enemies with Senate Bill 31, a controversial piece of legislation sponsored by state Sen. Don Balfour, R-Snellville, that allows the utility to charge customers in advance for two new proposed nuclear reactors at Plant Vogtle near Augusta, Ga.

The bill’s proponents said the rate hike, which would cover the reactors’ financing costs, was necessary to build the costly white elephants. Consumer groups, libertarians, conservatives, liberals — hell, even senior citizens — fumed at the proposed tacked-on cost. Nonetheless, SB 31 passed, and starting in 2011 ratepayers will see an additional $1.30 each month on their energy bills. The monthly fee will roughly double every year, topping out at an estimated $9.30 a month — or $108 a year — in 2017.

Well, Uncle Sam might give Georgia Power ratepayers a little bit of a reprieve from those Plant Vogtle charges. The U.S. Department of Energy is set to bestow $18 billion in federal financing to four utilities that could boost nuclear energy production. And those Plant Vogtle reactors are reportedly on the federal agency’s shortlist.

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Georgia Trend magazine this month bestowed Georgia Power CEO Mike Garrett with the title “Most Respected Georgia Businessman.”

You think it’d be a fluff piece. But Garrett’s profile — which in the print edition is bordered by sycophantic ads hilariously congratulating the CORPORATE TITAN for this monumental achievement — is actually eye-opening.

Georgia Trend editor Susan Percy provides some additional details on the utility’s strong-arm effort to pass Senate Bill 31 during the most recent legislative session. That bill, which was recently signed by Gov. Sonny Perdue, allows Georgia Power to charge ratepayers in advance for the financing costs on two new proposed reactors at Plant Vogtle. It was widely lambasted. But bad ideas under the Gold Dome have a way of growing legs and becoming law.

Percy’s one of the first journalists we’ve seen to ask Garrett on the record about the controversial legislation — as well as the steamrollin’ way the bill was shoved down lawmakers’ throats.

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If you’ve been looking for a concise description of utility juggernaut Southern Co.’s lax attitude about getting serious about clean energy — and the state’s role in allowing them to do so — read the second letter to the editor in today’s Savannah Morning News (”Knowing the wind-Vogtle connection”).

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Plant Vogtle

The Fulton County Taxpayers Foundation and its president John Sherman filed a lawsuit Wednesday in Fulton County Superior Court over Senate Bill 31, a controversial piece of legislation that allows Georgia Power to begin charging customers in advance for two new proposed nuclear reactors at Plant Vogtle.

The lawsuit names the Georgia Public Service Commission, the quasi-judicial state agency that decides how much you pay for your electricity, and Gov. Sonny Perdue, who signed the bill on April 21, as defendants.

During the legislative session, a diverse group of critics called the bill unfair because some industrial customers are exempt from the rate hike. They also said the issue belonged in the Georgia Public Service Commission, where a full-time staff examines and studies the complicated issue of nuclear financing. Georgia Power hired more than 70 lobbyists the push the bill.

In court documents, the foundation’s attorney John Woodham — the lone-wolf barrister who successfully fought the Beltline’s main funding mechanism all the way to Georgia Supreme Court — calls the bill unconstitutional on numerous grounds.

View the 53-page lawsuit here (PDF). It’s a long and complicated read for those not learned in the language of legalese. But it lays the groundwork of what’s sure to be an interesting battle over one of the past legislative session’s most controversial issues.

(Courtesy Nuclear Regulatory Commission)

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Plant Vogtle

It’s quite common for journalists to “bury the lede” — that is, to downplay the real news and stick it in the far recesses of an article. Sometimes it’s on purpose, but usually it’s avoided.

To “bury the lede” on a press release? Kind of bizarre. But it happened today when Gov. Sonny Perdue announced he’d signed a bill that would mean more money for the state’s unemployed — and even up to 13 extra weeks of benefits to help them through hard times. It all comes from federal funds, so it wouldn’t mean a tax increase on Georgia businesses. Sounds good, right?

Perdue followed up that little bit of sunshine with a long list of legislation he also inked today with his Juan Hancock. Among them: Senate Bill 31. That’s the WTF legislation that allows Georgia Power to start charging customers for some costs of two proposed reactors at Plant Vogtle years before the white elephants are completed. It was widely maligned and derided by everyone from conservative bloggers to the AARP. Apparently the only people in favor of the plan were the free-market drumbeaters at the Georgia Public Policy Foundation and lawmakers coached in talking points by 70 lobbyists hired to peddle the bill.

Its signing into law wasn’t very surprising, really. (Perdue’s chief of staff is a former Georgia Power “vice president of governmental and regulatory affairs,” or, in English, “lobbyist”). But it’s just kind of funny that one of the hot-button bills of the session — one that would “create jobs” and “be good for Georgia” — didn’t merit its own press release. And the fact that a recent lawsuit filed by Atlanta attorney John Woodham and the Fulton County Taxpayers Foundation about the bill didn’t even make Perdue wince or explain the decision.

After the jump, the full announcement about the state unemployment legislation Perdue signed. But first, the full list of all the other bills Perdue signed today. Play along with us as we sort through the pile and see what they were! At the top of the screen, select whether it’s “HB” for “House Bill” or “SB” for “Senate Bill” and then enter the number in the field. It’s fun! Kind of.

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This could be interesting.

From the office of state Senate Minority Leader Robert Brown of Macon comes a press release titled “Mending Georgia Power.”

The Georgia Power tax-bill, SB31, sailed through the chambers of the state assembly this session. Emphasizing the need to limit the damage of the Georgia Power tax, Senator Robert Brown will be holding a press conference tomorrow, March 19th, at 11:30 A.M. in the Senate Press Office. Senator Brown will discuss legislation addressing issues that have surfaced in the wake of Georgia Power’s evasion of Georgia’s process for regulating utility companies.

SB 31, if you recall, would allow Georgia Power to charge customers in advance for two new proposed nuclear reactors at Plant Vogtle. Critics opposed the bill because it placed the burden of a costly and unpredictable technology on the shoulders of ratepayers and not the company’s shareholders, among other reasons. The bill passed both the Senate and House.

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Do you or one of your neighbors have an extra closet — maybe some storage space or a shed out back — where a mom-and-pop nuclear facility can dispose of their low-level radioactive waste? Plant Vogtle might need to borrow it.

The Southern Alliance for Clean Energy and other environmental groups recently raised a red flag about two new reactors proposed for the nuclear plant near Augusta that’s owned and operated by several Peach State utilities, including Georgia Power.

At issue is whether the nuclear facility, already home to two power-generating white elephants, has sufficient plans to safely dispose of low-level radioactive waste produced by the new reactors.

And late last week, the Atomic Safety and Licensing Board, a three-judge federal panel that’s part of the U.S. Nuclear Regulatory Commission and one of the many steps in the complicated process of approving nuke plants, said the environmental groups’ concerns merit a closer look. Should Southern Nuclear, the Southern Co. subsidiary that operates Plant Vogtle, not produce a better long-term plan, the federal agency might not issue the company a permit to build the new reactors.

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Senate Bill 31, a belated Christmas gift to Georgia Power, is scheduled to come up for a vote Wednesday in the state House. Normally, I’d assume that a bill this controversial and with such powerful backing wouldn’t hit the House floor unless its supporters had counted the votes and were certain of its passage.

But I’m not so sure in this case.

As you recall, SB 31 would allow Georgia Power to start billing ratepayers on the front end for the cost of building two new nuclear reactors at Plant Vogtle. Under current law, the utility secures its own financing for capital projects, then recoups its investment after a new facility goes online. The bill is controversial both because it would circumvent the normal regulatory authority of the elected Public Service Commission and because many folks believe it’s not a good deal for consumers.

One House Republican told me that he and many of his fellows were plenty steamed after learning that most of the $1.6 billion Georgia Power expects to collect in financing fees would be used to line the pockets of the utility’s shareholders – yet more ammunition for critics who contend that the arrangement is designed to shield the private company from financial risk at the expense of the public.

An opposing lobbyist speculates that Georgia Power is trying to rush through a floor vote because the bill is losing votes with each passing day. If that’s the case and this is a desperation move, then stayed tuned – anything can happen.

(Photo Christina Wedge)

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Opponents of a controversial piece of legislation have a powerful voice on their side.

Erick Erickson, editor of Peach Pundit, sent a message to readers today asking them to tell their lawmakers to vote “no” on Senate Bill 31. That bill, which sailed through the state Senate last week, would allow Georgia Power to charge customers in advance for two new proposed nuclear reactors at Plant Vogtle. He explains the decision here.

That position is sure to catch the attention of many state lawmakers — particularly House members who are now mulling over the legislation.

You can rest assured they won’t miss the post. Seated in the House’s press box, a journalist gets a clear view of lawmakers’ laptops. Throughout the day, you’re bound to see Peach Pundit on several screens.

Erickson’s letter is posted after the jump.

(Photo by Joeff Davis)

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WHITE ELEPHANTS Senate Bill 31 would provide safety net for Georgia Power

In 1974, Georgia Power broke ground on nuclear reactors at Plant Vogtle near Augusta, embarking on a nuclear odyssey that would nearly bankrupt the company.

Almost 15 years later — and after several delays and environmental hurdles— the project’s construction costs ballooned from $680 million to a staggering $8.4 billion. And it wasn’t until then that Georgia Power could begin to recoup the cost from ratepayers.

Now, as the state’s largest utility moves forward on two new reactors at Plant Vogtle estimated at $6.4 billion, the first in nearly 30 years, the company wants to cover its assets — and it’s enlisted the assistance of a phalanx of lobbyists and a controversial legislative plan of attack.

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The state Senate today passed a bill 38-16 that would allow Georgia Power to begin collecting fees from customers to help pay for two proposed nuclear reactors prior to their construction. (The Senate Press Office included in its release about the bill’s passage this hilarious photo to the right of the bill’s sponsor, state Sen. Don Balfour, R-Gavelville.)

The bill now moves to the House, where Jim Galloway of the AJC says lawmakers are generally warm to the idea.

Supporters of the bill say it’ll save the utility — and in turn, customers — money in the long run.

But many lawmakers and consumer groups oppose the move because they say it sidesteps the Public Service Commission  — and partially exempts big business and industrial customers from the increased rates.

For an excellent rundown of the controversial legislation, view my esteemed colleague Scott Henry’s post.

After the jump, Dave Williams of the Atlanta Business Chronicle reports some lawmakers’ thoughts about the bill.

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Georgia voters have never gotten terribly excited over our Public Service Commission elections, partly because the issues involved — franchise agreements, amortization schedules, telecommunication service areas — are often so complex that few people understand them. But that’s why we elect these folks, to six-year terms, no less: to make difficult decisions about very complicated matters involving huge utilities.

Plant Vogtle near Augusta

That’s why no one I’ve talked to can figure out why the Senate is handling legislation to enact a fundamental change in the way Georgia Power bills its customers — meaning all of us. Sponsored by Rules Committee chairman Don Balfour, R-Duluth, SB 31 motored through committee Wednesday, even though some of his fellow Republicans indicated they didn’t completely grasp what it would do.

So, what would it do? Put simply, it would require Georgia Power customers — again, you and me — to begin paying for two new nuclear reactors at Plant Vogtle as they’re being built. This is a huge departure from how the billing process has worked in past decades. For all previous projects:

1. The utility gets approval for a capitol project from the PSC
2. The utility builds the capitol project on its own dime
3. The utility raises our rates to recoup its investment

This process has worked fairly well so far. Now, however, Georgia Power is pushing to get its money up front. I suppose you can’t blame ‘em; Vogtle’s two original reactors nearly bankrupted the company. Construction began in 1974, but endless delays caused by numerous redesigns and shifting federal regulations meant the plant didn’t go into operation until 1989. Costs ballooned from a projected $680 million to a staggering $8.4 billion — money the company couldn’t begin to recoup for a solid 15 years until the project was completed. (more…)

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The Georgia Public Service Commission, the quasi-judicial state agency that determines how much you pay to turn on your lights and heat up your oven, will hold hearings next week to discuss two proposed nuclear reactors at Plant Vogtle, an power-generation plant near Augusta owned mostly by Georgia Power and Dalton Utilities.

From the PSC:

The Georgia Public Service Commission will continue its hearings on the Georgia Power Co. request seeking commission certification of two new nuclear power generation units at Plant Vogtle at 10 a.m. on Monday, January 12, 2009. The meeting will take place in Room 110 at 244 Washington Street, S.W., Atlanta, Georgia.

The hearings will continue at 10 a.m. on Tuesday, January 13, 2009 through Friday, January 16, 2009 if necessary, with the Commission Public Interest Advisory Staff and other intervenors presenting testimony and evidence in support of their positions. The January 15, 2009 hearing will begin at 1:30 p.m. The Public Interest Advisory Staff in their pre-filed testimony of December 19, 2008, recommended approval of the certificate based on Georgia Power’s acceptance of certain financial conditions recommended by other Staff witnesses.

On Feb. 9, Georgia Power will have four days to argue its case in front of the five-member commission. Briefs and proposed orders are due to PSC on March 6. On March 17, the commission is scheduled to issue its decision.

An audio webcast of the hearings can be heard on the commission’s site under “Audio Broadcast Link.” More information about Georgia Power’s request is available on the PSC’s site under Docket Number 27800.

(Photo courtesy of the U.S. Nuclear Regulatory Commission)

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Rob Pavey at the Augusta Chronicle reports the Nuclear Regulatory Commission have determined two new nuclear reactors at Plant Vogtle would not have an impact on the environment. The commission approved an early site permit initially requested by Southern Co., the plant’s co-owner and operator, in August 2006.

From the article:

The early site permitting process allows an applicant to address site-related issues, such as environmental impacts, for possible construction and operation of a nuclear power plant.

Although it is not a license to build reactors, it streamlines the process to determine whether a proposed site is suitable.

(Photo courtesy of the Nuclear Regulatory Commission)

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DEFENSES DOWN: The Fulton County Superior Court’s chief judge calls the mass layoffs of public defenders — which was announced Friday with lack of state funding as the reason — irresponsible, saying it could create a legal crisis.

ATTACK OF THE KILLER TOMATOES: Major restaurants and grocery store chains are voluntarily withdrawing raw tomatoes suspected of starting a 17-state salmonella outbreak, as officials continue searching for the source. Georgia tomatoes are fine.

OLD SHOULDERS NEVER DIE: John Smoltz is having season-ending shoulder surgery today.

CLAYTON: Corrective superintendent says the school district’s mandate-meeting progress can be quantified when SACS officials visit next month.

FIREBOMBING: Gwinnett radio station is attacked by a former employee armed with Molotov cocktails; a bystander corralls him, but the two of them are injured by the ensuing fire.

VOGTLE MAJORITY: The Marietta City Council unanimously votes to spend $405 million on the $14.2 billion nuclear expansion of Plant Vogtle. Since the city won’t need the energy until 2036, it will sell it to other utilities for 20 years, reducing the overall cost to $200 million.

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BOC vs. BOE: Clayton Board of Commissioners joins in the seemingly daily calls for all members of the school board to resign.

NAACP: Says Waycross third-graders’ alleged murder plot against their teacher has been overblown, calls for investigation of teacher’s prior behavior.

CONFUCIUS AT KSU: Cobb university to receive the state’s second Chinese-funded cultural and linguistic institute.

RESERVOIRATIONS: Some state legislators doubt the new water bill does enough.

HGH AS A KITE: Top Braves center field prospect Jordan Shafer is suspended 50 days for HGH use.

NEW NUKES: Georgia Power could build two new reactors at Vogtle, pending approval from the PSC.

AMERICAN AIRLINES: Wire so many flights being canceled?

A BONE TO PICKET: Delta pilots get permit to picket at Northwest hubs over the seniority disputes that have stalled the airlines’ merger negotiations. Actual picketing may be held up by difficulty in coming up with catchy rhyming protest chants about a seniority dispute.

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A planned expansion for Plant Vogtle, a Southern Co.-owned nuclear plant in Waynesboro, Ga., has been stymied because of the possible impact it may have on the nearby Savannah River. The Atomic Safety and Licensing Board, a federal panel that oversees nuclear facilities in the country, agreed with concerns voiced by such environmental groups as the Savannah Riverkeeper, the Southern Alliance for Clean Energy and the Center for a Sustainable Coast, and will now forward the matter to the U.S. Nuclear Regulatory Commission. For more details, click here.

The various concerned groups also sent a letter to David Ratcliffe, Southern Co.’s CEO, outlining the environmental risks and financial uncertainties the plant’s expansion could pose. Click here to view the letter the opponents of the expansion sent to Ratcliffe.

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Several local civic groups and activists including members of Atlanta WAND, Southern Alliance for Clean Energy, Sierra Club’s Georgia Chapter, and singer Emily Saliers of the Indigo Girls will rally outside the Atlanta office of the U.S. Nuclear Regulatory Commission at 2 this afternoon.

Those rallying are opposed to Southern Company’s plan to build two new nuclear reactors at Plant Vogtle, plans that must be approved by the NRC. They point out that nuclear power is not only unsafe, but it also consumes huge quantities of water. In his Aug. 22 cover story about Southern Company’s nuclear strategy, CL’s Scott Henry noted that an expanded Plant Vogtle would consume more water each day than the entire city of Atlanta.

Here’s the press release:

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