Georgia Gazette Monday, June 8, 2009

Join host Rickey Bevington tonight for Georgia Gazette. On tonight's show… Luring businesses like tech giant NCR to the state via tax incentives… does it work in the long run? And most Georgians can say so long to the electric meter reader, and hello 21st century… A technology that could help people save energy. The art of tattooing... a boon in Augusta despite the economy. Plus, your chance to win free parking at state parks. These stories and more tonight on Georgia Gazette at 6, 7 in Athens, re-broadcast at 11, hear our show any time at www.gpb.org/georgiagazette , and download a free podcast on iTunes.

Nuclear Reactors Near Augusta Get License Renewals

The U.S. Nuclear Regulatory Commission has renewed the operating licenses for two nuclear reactors at the Alvin W. Vogtle Electric Generating Plant in Waynesboro, near Augusta.

The renewal is good until the year 2047 for one of the existing reactors and 2049 for the other.

Plant Vogtle, meanwhile, has received widespread attention -- and controversy -- as it also seeks to build two more reactors. Georgia Power, a majority owner of Plant Vogtle, and Southern Nuclear Operating Company, which operates the plant, have been seeking approval to build the additional reactors. The state public service commission says the reactors would meet an increasing demand for electricity in Georgia. Environmental groups, meanwhile, have argued that the demand is not big enough to justify the reactors.

The state public service commission has given the okay for the proposed new reactors, but the NRC is still reviewing the proposal. Construction of the reactors would be among the first in the U.S. in decades.

Environmental groups, meanwhile, oppose the proposed new reactors.

For more information about the existing reactors and the license renewals, click here.

Perdue Responds To SB 31 Lawsuit

Legislation signed this week by Governor Perdue includes SB 31--that’s the bill to allow Georgia Power to charge ratepayers early for a pair of nuclear reactors before construction is finished.

But Perdue is among other top lawmakers named in a lawsuit which claims the bill passed through the Legislature illegally. The suit filed by the Fulton County Taxpayers’ Foundation says any measure increasing revenue should originate in the House, not from the Senate.

Perdue on Wednesday responded to the suit:

"As I understand it, the lawsuit was to enjoin me from signing a bill, and based on the powers in the way our governments are set-up with judicial, legislative and executive...it is the role of the executive branch to choose whether or not to give that final vote, and frankly I do believe the lawsuit was more of a publicity stunt than anything else."

A Georgia Power spokesman told the ‘Atlanta Journal-Constitution’ they’re not worried about the suit.

Perdue Approves Electric Rate Hike

Gov. Sonny Perdue has a signed a bill that will hike electric bills for Georgia Power customers to pay for the construction of two nuclear reactors near Augusta. The new law allows Georgia Power to begin to collect some $1.6 billion in costs from ratepayers six years before the reactors go online. Ratepayers would see their electric bills rise by an average of $1.30 a month in 2011. Those increases will gradually rise to an additional $9.10 a month in 2017. Supporters say the financing scheme will lower the overall cost of the project. Critics say consumers will be forced to pay for the reactors before seeing any benefit from them. The $14 billion expansion project at Plant Vogtle must still receive federal approval.

(Associated Press)

GA Power "Pay It Forward" Plan Challenged in Lawsuit

A bill that would charge Georgia Power customers to pay early for the construction of two nuclear reactors awaits Governor Sonny Perdue’s signature. The governor has indicated he’ll sign it.

Meanwhile, it has become the target of a lawsuit by the Fulton County Taxpayers’ Foundation. The group sued Governor Perdue, Lt. Governor Casey Cagle and House Speaker Glenn Richardson among others last week.

The lawsuit argues Senate bill 31 is illegal because it originated in the state Senate instead of the House, and that any measure that increases revenues should originate in the House.

Publish Post

Georgia Power officials say they aren’t worried about the lawsuit.

(The Atlanta Journal Constitution)

State Public Service Commission Approves New Nuclear Reactors for Plant Vogtle in Eastern Georgia

The state Public Service Commission approved Georgia Power's plan to build two new nuclear reactors at Plant Vogtle, near Augusta.

The panel voted 4-1 on Tuesday.

Set to be completed in 2017, the reactors could be the first new nuclear units to start construction in the nation since the 1970s. The proposal must also receive an OK from the Nuclear Regulatory Commission.

Georgia Power said the $14 billion project is needed to meet surging electricity demand in Georgia. But critics say there are questions about where the waste would be stored.

The legislature has passed a bill that would allow the utility to collect about $1.6 billion in costs from ratepayers before the reactors go online. Gov. Sonny Perdue must still sign the bill.

(AP)

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Georgia Power Wants Delay In Fuel Hike Request

Georgia Power is asking the Public Service Commission to delay its request for a fuel charge hike. Bobby Baker with the PSC says they just received a letter asking to push back the company’s hearing on the request until September:

"Right now the company hasn't provided us with any specific reason for the delay, other than the change in the economic situation here in Georgia and around the country."

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Baker says if the hearing is delayed to September, a PSC decision wouldn’t come until January. That means customers wouldn’t see a hike on the fuel charge item on their bills until early 2010.

Just last week, Georgia Power won approval from state lawmakers to begin charging customers in 2011, for a pair of nuclear reactors under-construction at Plant Vogtle.

4 PM: Hundreds Still Without Power

800 customers are still without power two days after a winter storm swept through northern parts of the state. Georgia Power expects people around Athens to have power by 7p, with customers in Hartwell restored to power by 10 pm. In all, the storm knocked out power for about 100,000 customers. At least seven school districts in northeast Georgia are closed again today. 50 districts closed yesterday.

Thousands Still Without Power

Restoring electricity to thousands of Georgia residents is still the challenge this morning in the wake of the weekend’s winter storms that moved through.

Georgia EMC says there are still 13,000 of its customers without power. The outages are mainly concentrated in the northeast Georgia counties of Madison and Jackson. Georgia EMC crews are working to repair two sub-stations, along with a couple dozen poles damaged from the storm.

Georgia Power tells GPB this morning it is down to 1,500 customers still in the dark--all in the northeast portion of the state. It expects all power to be restored by this afternoon.

There are also a handful of county school system closings for today:

Clarke, Hart, Jackson, Madison, and Oconee counties. Elbert County schools will delay opening by a couple of hours.

Electricity Restoration Work Continues

Electricity is slowly being restored to customers across the state affected by the weekend’s winter weather.

A Georgia Power spokesperson says as of early this afternoon, it was down to around 25,000 customers still without electricity. The outages remain concentrated in the northeast Georgia region.

The Georgia Electric Membership Corporation says it has a little more than 20,000 customers still without power, down from 29,000 earlier this morning. Georgia EMC workers are focused on the hard-hit areas of Jackson and Madison counties, where two substations were affected by a transmission line problem. Officials say some customers may not get power restored until sometime Monday night.

State Recovers From Winter Weather

A Sunday full of snow, and an overnight of gusty winds across parts of Georgia have mixed to present Monday morning problems for parts of the state.

Officials with Georgia Power this morning tell GPB they still have about 28,000 customers without electricity as of 8am. The bulk of those outages are in the Athens-area, with strong winds causing numerous downed tree limbs onto power lines.

From the group of electric membership cooperatives in Georgia, serving four-million residents--they report about 29,000 customers without power. Along with outages in metro Atlanta, outages also are reported in middle and west Georgia. Georgia EMC says its biggest challenge involves extensive damage to a transmission line and two substations in Jackson and Madison Counties, which has impacted about 16,000 customers. Last evening, this area received nearly seven inches of snow, prompting repairs that could extend into early to late Monday evening.

The state Department of Transportation says they’ve been working through the night to handle trouble spots in Georgia when reports of icy patches on roads come in. Brian Gunter is with the DOT says about 100 trucks right now are on duty:

"Over the last 24 hours all over Georgia we've had over a 1,000 employees and 200 pieces of equipment just rolling around checking out the icy spots and laying down sand and salt."

There are dozens of county school system closings across Georgia, along with numerous private school and city school closures. The list of county school system closings as of 8:10 am:

Baldwin, Banks, Barrow, Bibb, Bleckley, Butts, Clarke, Clayton, Coweta, DeKalb, Dodge, Elbert, Fayette, Fulton, Gwinnett, Hancock, Hart, Henry, Jackson, Jasper, Jones, Lamar, Madison, Meriwether, Monroe, Morgan, Newton, Oconee, Oglethorpe, Pike, Putnam, Rockdale, Spalding, Taylor, Telfair, Troup, Twiggs, Upson, Walton, Wheeler, Wilkes.

Lawmakers get pressure on SB31

Right now State House lawmakers will begin debating whether Georgia Power will get to charge customers in advance for construction costs to expand Plant Vogtle near Augusta. GPB learned the House will not amend the bill---that means lawmakers hands are tied---they can vote yes, they can vote no, but they won't be unable to offer up compromises or alternative policies to fund the nuclear expansion. Conventional Wisdom in Atlanta says that move will help get Georgia Power exactly what they want in the legislation. WGPB's John Sepulvado reports those perceived heavy handed legislative tactics have set off a grassroots movement against the bill.

listen to story here

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Vogtle Nuclear Plant Bill Passes House C'tee

Plant Vogtle. (Courtesy: Nuclear Regulatory Commission)

Legislation that would effectively boost electric rates for thousands of Georgia Power customers beginning in 2011 passed a hurdle in the legislature on Friday.

Senate Bill 31 bill cleared the House Committee on Energy, Utilities & Telecommunications on Friday by voice vote.

The bill passed the state Senate 38-16 on Feb. 11. Click here to read the liveblogging of the Senate debate over the bill.

The bill allows Georgia Power to begin collecting interest costs for its nuclear expansion at Plant Vogtle six years before the new nuclear reactors are set to be completed.

Critics of the nuclear charges bill say the measure is a raw deal for consumers being asked to the foot the bill for the reactors long before they'll see any benefit from them.

Supporters say it will slash some $300 million off the project's estimated $14 billion total price tag, saving consumers money in the long run. Either way electric bills will go up, they argue.

S.B. 31: http://www.legis.ga.gov/legis/2009_10/fulltext/sb31.htm

(AP)

Click here for previous GPB News coverage of this story.

Bill To Hike Electricity Rates Moves Forward

A State Senate panel Wednesday approved legislation that would hike electric bills for customers of Georgia Power. The bill would allow the utility to begin collecting interest costs on the construction of two new nuclear reactors before they're completed. The Senate Regulated Industries and Utilities Committee passed
the bill on the 8-2 vote. It now goes to the full Senate for consideration. Under the bill, Georgia Power customers would see their bills rise by an average of $1.30 a month beginning in 2011.

Georgia Power wants to expand its nuclear facility at Plant Vogtle near Augusta years before construction would be finished. Company officials argue that recouping the interest costs means ratepayers will pay less in the long run. They estimate it will shave $300 million off the $16 billion expansion. Critics say customers would actually pay more in future years.

Electricity Rates Under Review

Backers of a bill that would boost electric bills for Georgia Power customers say it will actually save consumers money over the long haul. The legislation would allow Georgia Power to begin collecting interest early for the construction of two new nuclear reactors at Plant Vogtle near Augusta years before the construction is completed. It would add an average of $1.30 a month onto customer's bills beginning in 2011. Consumer groups are expected to speak up against the bill.

(Associated Press)

Voluntary Lay-Offs at Georgia Power

Georgia Power plans to ask several hundred workers to take a voluntary lay-off. Today the Southern Company unit made the offer to full- and part-time employees who have been with the company for 10 or more years. After workers come forward voluntarily, the company may have to make further job cuts.

(Atlanta Business Chronicle)

Georgia Power Plans Layoffs

Georgia Power plans to ask several hundred workers to take a voluntary lay-off. Today the Southern Company unit made the offer to full- and part-time employees who have been with the company for 10 or more years. After workers come forward voluntarily, the company may have to make further job cuts.

(Atlanta Business Chronicle)

Georgia Public Service Commission considers rate increase for Georgia Power

The Georgia Public Service Commission began another round of hearings this week focusing on how to finance the construction of two new nuclear reactors at the Plant Vogtle power plant in eastern Georgia.

At issue...whether to let Georgia Power raise utility rates sooner, rather than later, to pay for two new nuclear reactors in Burke County, near Waynesboro.

Georgia Power says a rate increase beginning in 2011, while construction of the reactors is in progress, would cut billions of dollars in interest from construction costs.

The average residential utility customer, one whose power bill averages about $100 per month, would start off with an increase of $1.30 a month. The rates would increase each year, with those consumers paying at least $109 more a year by 2018.

"If you don't make any payments on the facility until it goes into service, then a large percentage of what our customers are going to be paying for is the accrual of interest," says Oscar Harper, a vice president at Georgia Power.

Harper estimates that increasing rates on the front end will save ratepayers money after the construction is completed.

But opponents of the reactors say that's risky, and unfair.

They held a press conference outside the PSC headquarters in Atlanta today.

"If you tried this is the competitive market, you'd be out of business instantly," says Neill Herring, a lobbyist and spokesman for the Georgia Sierra Club. "What if Kroger decided they wanted to charge more for groceries if they maybe wanted to build another store? You'd go to Publix. "Who do you go to if the power company does that?"

Construction on the proposed reactors would likely not begin before 2011, and that's only if federal officials approve it.

The hearings continue throughout most of the week.

The PSC will likely make its decision by March, although the state legislature can also vote on a rate increase.

For more information on the hearings, go to www.psc.state.ga.us.

Georgia Power Plans Safety Improvements

Georgia Power says the utility will have a plan by the end of this month for making safety improvements to the downtown Savannah electrical grid after two recent fires sparked underground explosions. Explosions last week and in August blew off manhole covers and rattled office buildings in downtown Savannah. No one was injured. A top executive says possible options include temperature gauges to monitor underground cables and restraints to keep manhole covers anchored in place. Georgia Power began two years ago to replace the city's aging network of underground cables, but that work won't be finished until 2012.

(Associated Press)

Crews rush to replace aging electric cables

An update now on the underground explosion in downtown Savannah last month. Georgia Power says it's expediting replacing 50- to 80-year old electrical cables beneath Savannah's streets. The December 29th blast was linked to aging cables. It was the second blast of its kind – the first in August. No one was hurt in either blast. The company says it will send extra crews to replace the cables by 2012 – four years ahead of schedule.

(Associated Press)