Georgia's Vogtle planned nuclear plant - industry winning effort to shift risk to ratepayers

Consumer, not Georgia Power, would be on hook for potential Vogtle overruns
By Kristi E. Swartz
The Atlanta Journal-Constitution

A consumer watchdog group on Thursday continued to press for an agreement that would make Georgia Power — and not consumers — pay for any major cost overruns at its Plant Vogtle nuclear expansion project, but Georgia utility regulators remained resistant.

At an energy committee meeting in their downtown Atlanta chambers, Public Service Commission members said they would support only a July 18 deal reached between Georgia Power and the PSC’s advocacy staff, one that removed a recommendation calling for Georgia Power’s profits to be reduced should the costs to build two nuclear reactors at Plant Vogtle exceed budget by $300 million. Additional costs, with PSC approval, would show up in customers’ monthly utility bills.

Georgia Power executives have argued that a cost-containment plan, originally considered and rejected by the PSC but still pursued by Georgia Watch, could drive up the project’s financing costs, potentially damaging the ability to raise capital. That, in turn, could increase customer bills.

Commissioner Tim Echols was more pointed, saying approval for such a plan would “chill the construction of nuclear plants in the United States.” ...

http://www.ajc.com/business/consumer-not-georgia-power-1055562.html




Ga. weighs dropping financial plan for nuke plant
By RAY HENRY


Utility regulators appeared poised Thursday to drop a plan that would have cut Georgia Power's profits if the utility exceeded its budget while building the first in a new wave of nuclear power plants.

Two members of the Georgia Public Service Commission praised an agreement reached this month between the subsidiary of the Southern Co., one of the nation's largest electricity generators, and PSC staffers. That deal could end three years of debate over how much financial exposure the state-regulated utility should face if it breaks its approved $6.1 billion construction budget.

The issue is potentially worth hundreds of millions of dollars. Under state law, Georgia Power passes along its construction costs to its 2.4 million customers, meaning state residents will pay for the new plant even if it goes over budget. The state's elected utility regulators, who typically approve agreements struck between its staff and the power company, plan an Aug. 2 vote on whether to accept the deal.

"It's a fair and reasonable resolution to an issue that you've had before you for a long time," said Jeffrey Stair, a PSC attorney, during a committee meeting.

Georgia Watch, a consumer advocacy group...

http://www.businessweek.com/ap/financialnews/D9OPB3L00.htm

"Private profits, public losses" bill.