July 29, 2011

For months, state regulators at the Public Service Commission and attorneys for Georgia Power have been tasked with negotiating a risk sharing mechanism (RSM) to provide some protection for ratepayers in the event of cost overruns for the two new nuclear reactors under construction at Plant Vogtle.

Mere days before a final vote by the PSC, state regulators appear to have caved in to Georgia Power’s staunch opposition to any such mechanism by entering into a settlement agreement with the Company that does no more than re-state Georgia law and current regulatory policy. The settlement expressly provides that PSC staff will withdraw its support of the two risk sharing mechanisms it has previously submitted for Georgia Power’s and the Commission’s consideration. Read more

July 22, 2011

Earlier this week, staff members at the Public Service Commission caved in from pressure by Georgia Power and withdrew its latest “risk sharing mechanism” (RSM) proposal for construction costs of the two new reactors at Plant Vogtle. The Staff RSM would have provided at least a minimal level of protection for Georgia Power ratepayers against massive cost-overruns. Without an RSM, ratepayers will be responsible for paying millions more in early profit in the likely event of construction delays and ballooning costs.

In a brief submitted to the PSC, Georgia Watch Consumer Energy Director Clare McGuire says ratepayers are now unfairly exposed to cost overruns, while Georgia Power shareholders carry little to no risk.

“For Georgia Power to take the position that no RSM whatsoever is necessary when – pursuant to Georgia law – ratepayers are already on the hook for unlimited cost overruns, shows a staggering disregard for ratepayers’ financial well-being, especially when such a stance is taken in the same calendar year in which ratepayers have already been saddled with a 10 percent monthly base rate increase and the imposition of the Nuclear Construction Cost Recovery charge, the combined impact of which is approximately $15 per month for an average use customer.” Read more

July 6, 2011

Georgia Watch intervened today on behalf of ratepayers before the Public Service Commission (PSC) in support of a cost control plan for the construction of two new reactors at Plant Vogtle, near Augusta.

Specifically, Georgia Watch advocated for a risk sharing mechanism (RSM) that spreads the project’s financial burden in the event of cost overruns. This position is also shared by PSC staff. Reports have already indicated that construction is months behind, with additional delays on the horizon due to increased scrutiny by federal regulators. Read more