Georgia Gazette Tuesday, June 23, 2009

Join host Rickey Bevington tonight for Georgia Gazette. On tonight's show … Nuclear power and public safety. Neighbors of Plant Vogtle react to the federal government’s hearings on safeguarding nuclear plants against terrorism. The beginning of a second revolution in Iran? A local Iranian-American and Georgia Gazette commentator parallels the 1979 overturn with what’s going on today… And images are managing to seep out of the tightly controlled media in Iran… social media has ushered in all kinds of controversial content… should it be policed? Answer our facebook poll. 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.

Federal Funds for Nuclear Expansion at Plant Vogtle?

The Energy Department has narrowed its list of the most likely recipients of $18.5 billion in government loan guarantees for building the first new nuclear power plants. The department recently informed four companies planning new reactors in Georgia, Maryland, South Carolina and Texas that their applications have been elevated for closer scrutiny, department and industry officials said Friday.

Energy Department spokeswoman Stephanie Mueller said the applications were singled out for closer review because they are furthest along in obtaining a license from the Nuclear Regulatory Commission.

The proposed projects singled out include Atlanta-based Southern Company for two new reactors at its Vogtle power plant near Waynesboro, and South Carolina Electric & Gas, for two new reactors at its V.C. Summer power plant near Columbia, South Carolina.

(Associated Press)

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)

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.

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.

The Capitol Week Ahead

There will be a handful of committee meetings for House members today at the State Capitol. Tuesday, the full General Assembly reconvenes for another week of work.

Some of what’s ahead for the week--there will be committee meetings in the House and Senate on transportation funding. Subcommittees in the House will tackle Senate Bill 31. This legislation would allow Georgia Power to charge customers early for construction of a pair of new nuclear reactors for Plant Vogtle. Tomorrow, Georgia U.S. Senator Johnny Isakson will speak to the state Senate and launch his re-election campaign.

Georgia Senate: Williams Explains Amendment

The short of the Williams Amendment requires the PSC to look at Georgia Power's entire balance sheet when considering and recovering pre-payment.

Before, (and this is very general as this is very complicated) the PSC would have only looked at GP's Plant Vogtle related financing.

Georgia Senate: Live Blogging Senate Debate on SB 31

As the State Senate begins debate on SB 31, the bill allowing Georgia Power and potentially other companies to charge customers for construction costs of nuclear power plants, two amendments aim to ease consumer watchdog concerns.

The first would require the Public Service Commission to look at the entire financial health of a power company when recovering costs.

Another amendment is expected shortly that would allow some seniors at or below the poverty line to be excluded from paying the bill.
11 36

Don Balfour, the Republican State Senator introducing the bill, says passage of this bill, will, among other things, help keep carpet manufacturing jobs in North Georgia

1140.

Democrat Rob Brown of Macon challeneges Balfour's assesment that Florida has a similar plan. Brown rightfully notes Florida is trying to stop their version of this bill.

1143

Senator Nan Orrock asks Balfour what about seniors who are paying into this, and might not be here when the power is produced?

"Seniors in my district aren't telling me they're going to die in six years," Balfour responds.

Balfour again mentions the carpet industry. Quick aside: Dalton Utilities owns a stake in Plant Vogtle.

1146

Orrock asks whether industrials got a carve out in this bill so they would get on board?

Balfour: That's not true. That's not true what so ever...

1147 (paraphrasing)

Orrock: Have you looked at the impact to the taxpayer, because the cost to power the state buildings would increase as a result?

Balfour: It will cost less in the long run, offsetting any increase begining in 2011 (when the charge is applied).

1150

Republican Senator Jeff Mullis of Chickamauga: Isn't true only Georgia Power has to go in front of the PSC to increase rates?

Balfour: Yes.

Mullis: Shouldn't every one have to go in front of the PSC to level the playing field?

Balfour: That would "cause a firestorm."

1155

Q: Isn't this about security for Georgia Power's rates?

Balfour: Yes. This provides security to GP.

1157-Real Debate Begins!

David Adelman: Balfour is a great guy who "is carrying a lousy bill for Georgia Power."

String music is playing from somewhere in the capitol and is flooding into the Senate Chamber, giving Adelman's speech a very dramatic effect as he talks about regulatory compacts. Imagine the theme from "Jaws" meets long discussion on nuances of power rate compacts.

1202

Adleman still talking. Says Southern Company is fine corporate citizen. Then says "What this bill does... is suggest the general assembly, should inject itself into the regulatory compact, on an issue, where the Georgia PSC staff as well as it's consultants, have said otherwise."

Adleman: This is not the first time Georgia Power has needed financing. The Georgia PSC has handled those before.

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)

Percentage of power from proposed new nuclear reactors in Georgia would go out of state

The Georgia Public Service Commission on Wednesday resumes a second round of hearings into whether Georgia Power should raise its rates sooner, rather than later.

The increase would pay for two new proposed nuclear reactors near Waynesboro to generate more electricity for Georgia.

The reactors at the Plant Vogtle nuclear power plant would generate enough electricity for 1.4 million homes.

Georgia Power's key argument for the reactors...demand for electricity in Georgia is increasing with the state's population.

Georgia Power is the majority owner of Vogtle. It owns nearly half the plant. The company wants to increase the rates of its customers beginning in 2011, when construction could start if all goes as planned with federal regulators.

But not all the power from Vogtle will stay in Georgia.

Another one of Vogtle's owners, the Municipal Electric Authority of Georgia (MEAG), would sell about 65 percent of the power it receives from Vogtle to electricity suppliers in Alabama and Florida.

That means about 15 percent of Vogtle's new power generation would go out of state.

"Because the (reactors) are built in large blocs, and you receive that resource in a large bloc, and our load changes incrementally over time, it allows us to grow into that resource over time," says Steve Jackson, a vice president at MEAG.

Jackson says the sale will happen for the first 20 years that Vogtle is in service. He expects MEAG's consumers will save money as a result.

MEAG does not plan to charge extra for power to finance construction of the two reactors until after construction is completed.

Environmental groups opposing the plan, though, have questioned whether there's enough demand in Georgia to justify the two nuclear reactors.

"It makes it very confusing to Georgians whether we need these new reactors right now in Georgia," says Sara Barczak, a spokeswoman for the Southern Alliance for Clean Energy. "We're using a lot of Georgia's resources to provide air conditioners and power tv's in Alabama and Florida. I don't think a lot of people would be too excited about that."

Georgia Power says all of its share of power will serve only customers in Georgia.

It's hoping an incremental increase in rates during construction, instead of after, will save billions of dollars in interest.

That rate increase would cost the average homeowner about $109 more a year by 2018...but Georgia Power says waiting to increase rates will cost about $30 a year more.

The new reactors would nearly double the amount of power generated at the plant.

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.

Panel says no to charging ratepayers for nuclear reactors before construction

A panel of the Georgia Public Service Commission says Georgia Power should delay charging customers for construction of two new nuclear power plants in eastern Georgia.

Georgia Power wants to charge its ratepayers now for the construction of two new nuclear reactors at the Plant Vogtle power plant near Waynesboro. They say that would reduce the cost of the plant.

But an independent panel, the PSC's public advocacy staff, has recommended against that.

The panel says current ratepayers should not subsidize a plant that will serve future ratepayers. They say the construction costs should only factor into rates after the plant goes online in 2017, if the new reactors are approved.

Georgia Power is the primary owner of Plant Vogtle. The company estimates the cost of construction to be about $9.8 billion, with Georgia Power funding $4.5 billion. Georgia Power has said its share of the construction costs could increase to $6.4 billion with interest.

The panel's recommendation, meanwhile, is not final. The PSC will make that decision in March.

PSC to hear from public on nuclear expansion today

The Georgia Public Service Commission today is seeking public comment on whether it should approve plans for the expansion of a nuclear power plant in eastern Georgia.

The PSC is considering whether Plant Vogtle near Waynesboro should be allowed to build two new nuclear reactors.

The expansion would be among the first in the U.S. in 30 years.

Southern Nuclear Operating Company operates Vogtle. Officials there say the expansion would help meet the growing demand for electricity in Georgia.

But it could also mean a rate hike in energy costs for customers to pay for it.

Environmental groups also argue that new reactors would seriously impact the Savannah River. Proponents deny that.

Any expansion requires approval from both the PSC and the U.S. Nuclear Regulatory Commission.

After today's comment period, the PSC this week will hear testimony from Georgia Power, a primary owner of Plant Vogtle.

It's scheduled to hear from opponents of the expansion in January.

Today's public hearing begins at 10 a.m. at the PSC's offices in Atlanta.

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

Plant Vogtle in Waynesboro gets favorable response on proposed new nuclear reactors

The U.S. Nuclear Regulatory Commission has found that there are no environmental impacts that would prevent Southern Nuclear Operating Co., a part of Southern Company, from getting an early site permit to construct two new nuclear reactors in eastern Georgia.

It's a preliminary, but important, step in the lengthy approval process for Plant Vogtle in Waynesboro.

Environmental and safety evaluations of the proposed construction site are conducted throughout the early site permit process.

Southern Nuclear must also get a construction and operating license to build.

That decision likely won't happen until 2009.

Environmental groups, meanwhile, argue the new reactors would use too much water from the Savannah River, something that Southern Nuclear denies.

The groups also fear a nuclear accident.

Southern Nuclear has said it has not committed to building the reactors, even though it's pursuing the permit and license.

The reactors would generate electricity for Georgia Power customers.

Georgia Power submits nuke request

Today Georgia Power asked for state approval on two new nuclear reactors. The Atlanta Business Chronicle reports that Georgia Power's parent company, Southern Company, submitted a request to the Public Service Commission today. The reactors would go up at Plant Vogtle near Waynesboro, south of Augusta. Georgia Power also submitted a proposal to convert a coal-fired plant near Albany to burn renewable biomass wood.

Nuclear power plant seeks two new reactors near Augusta

A proposal to build two new nuclear reactors near Augusta is generating controversy.

The public is invited to speak about the proposal at a hearing tonight.

Southern Nuclear Operating Company wants to build two new nuclear reactors at the Vogtle Electricity Plant near Waynesboro.

Both supporters and opponents of of the plan will speak at a public hearing tonight before the federal Atomic Safety and Licensing Board in Augusta.

Proponents say that nuclear energy is cheaper and is cleaner than other forms of energy, such as coal.

But opponents fear the reactors will use too much water from the Savannah River.

They also fear the risk of a nuclear accident.

Plant Vogtle already has two nuclear reactors.

Company officials say the new reactors would generate electricity for about 558,000 average homes in Georgia.

They hope to have the reactors online by 2017.

The hearing is scheduled for 7 p.m. at the Doubletree Hotel on Perimeter Parkway in Augusta. A presentation regarding a permit for the reactors will begin at 5 p.m.