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

June 22, 2011

If Plant Washington, the controversial Power4Georgians (P4G) proposed coal-fired power plant becomes a reality, Georgia consumers would see their electric bills skyrocket 10-20 percent in the first year depending on which electric member cooperative (EMC) they receive electricity from, as opposed to an expected two percent increase in the absence of the plant.

That is the main finding of a new Georgia Watch and TR Rose Associates study released today. Titled “Power4Georgians Plant Washington Coal-Fired Power Plant: Too High a Price for Consumers,” the report concludes: “If the proposed plant is built, rate increases will no longer be modest. The plant will also cause long-term financial headaches for the electric membership cooperatives (EMC’s) and others who sign on to purchase power from Plant Washington.”

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