“If the legislature wants to restore integrity in the political process, as Georgians have overwhelmingly asked them to do, they should stop passing the buck, and find the political courage to pass this bill,” said Georgia Watch Executive Director Angela Speir Phelps. “If our lawmakers choose to not place a cap on gifts, it will be clear that their sense of entitlement far outweighs their sense of duty to the people they serve.”

The Georgia Alliance for Ethics Reform includes Georgia Watch, Common Cause, the Georgia Tea Party Patriots and the League of Women Voters. House Bill 798 was introduced by Rep. Tommy Smith (R-Nicholls), and would place monetary limits on gifts that lawmakers can receive from lobbyists. Specifically, this legislation would:

• Impose a $100 cap on lobbyist expenditures on legislators, with an exception of a $500 limit for travel and related expenses associated with speaking engagements and conferences (except for the actual cost of travel, such as airfare and mileage). The $100 cap would not be imposed expenses associated with events to which all state legislators are invited.
• Restore the name of the State Ethics Commission and the agency’s rule-making authority and prevent lobbyists or their family members from serving on the commission.
• Create PAC contribution and expense disclosure requirements, limit contributions to PACs to $1,000 and limit PAC-to-PAC and campaign- to-campaign transfers to $10,000 per election cycle.
• Expand lobbyist expenditure reporting requirements by including expenditures for family members of public employees.
• Reduce the lobbyist registration fee to make it more affordable for non-profit organizations, small businesses and single-client lobbyists while recouping costs through an increased fee for lobbyists with multiple clients.
• Prevent public officials or members of their family from holding government contracts, except for businesses that are sole providers of services or products and for contracts under $10,000 in value.
• Increase from one year to two years the “revolving-door” ban for legislators who become lobbyists.
• Prevent public officials from working as lobbyists at the federal level or in other states.

This legislation is key in leveling the playing field to allow all Georgians, not just well-funded lobbyists, to play a meaningful role in Georgia’s lawmaking process. Unfortunately, many of our lawmakers have been silent on this crucial issue so far this legislative session. Please help make this bill a law by urging your representative and senator to support HB 798. Click here to learn who you lawmakers are and how to contact them. Want to do even more? Write a letter to your local paper telling them why you support this legislation. If you aren’t sure the best way to do this, please contact us and we’ll help you.

“The power to get this bill passed belongs to the people,” Speir Phelps said. “Our legislators are accountable to us and they need to hear from us- their constituents- the voting public. We need to let them know how important this is. If we’re silent, it will be seen as an endorsement of legislative apathy. Please call your house rep and senator and urge their support of the ethics bill.”

This is heartbreaking and happens far too often. Stories like this are the ones that make our work here at Georgia Watch so critical. The ability of someone to afford their utility bills can result in a life or death situation.

Georgia Watch advocates tirelessly for Georgia Power’s 2.3 million customers and Atlanta Gas Light Company’s 1.5 million customers who are often put in this type of situation. We work for lower, fair utility rates, and we stand up for residential and small business customers. We speak up for everyday Georgians, not special interests. The utilities and large customers are well represented by lobbyists and lawyers in the halls of the capitol and at the Public Service Commission.

Throughout 2011, Georgia Watch achieved many victories for consumers including fighting against unjust rate increases, lessening the impact of additional charges on customers’ bills, and advocating for assistance to help low-income seniors. As a direct result of Georgia Watch’s efforts, the Public Service Commission disbursed $5 million to help people in need pay their winter heating bills. Without our voice at the table, the scales of justice would tilt heavily against consumers.

Our state and our nation are still facing economic uncertainty. Georgia continues to lead the nation in unemployment, bankruptcy, and foreclosure, and recently our state’s capitol made national headlines: “Atlanta, Georgia, has widest income gap between rich and poor of all the major US cities, the US Census reported.” According to US Census data, 1 in 15 Americans are now amongst the poorest poor; in 2010 that meant an income of $5,570 or less for an individual and $11,157 for a family of four. These are often working poor and seniors – people trying to keep their head above water.

Now more than ever, Georgians need a relentless advocate in their corner. It is vital to ensure fairness and to hold those elected accountable. Recently, citizens across the country have expressed their dissatisfaction with the big banks and greed on Wall Street. Families and businesses are hurting and feel they aren’t being represented. They’re seeking a voice and someone to hear their concerns and honestly represent their interests.

Who is the watchful eye under the Gold dome in Georgia as the average citizen goes about his or her daily life getting to work, dropping the kids off at school, and figuring out what’s for dinner? Most Georgians can’t meet with hospital leadership to ensure they’re receiving the financial assistance for medical care they need and deserve. The average citizen does not have the time to attend Public Service Commission hearings where billion dollar cases are decided that impact our state’s economy and the environment. Georgia Watch can. For the past ten years, we have been the eyes and ears looking out for the everyday Georgian.

The political noise of the 2012 elections is ratcheting up, but campaign promises are empty if they’re not kept. If there has ever been a time in our history that the people need a voice, it’s now. With 2011 coming to a close, we here at Georgia Watch ask that you support our work with a donation so we can continue serving as your voice in 2012 and beyond.

Click here to donate now. 

- Angela Speir Phelps

Starting in December, these emergency assistance funds will be used to assist with heating bills as well as reconnect heat for those who have had their heat turned off within the last 45 days. The $10 million is coming from the universal service fund that Atlanta Gas Light usually utilizes to extend natural gas pipelines to where new homes and businesses are being built. Money for the fund comes from AGL’s industrial customers and its wholesale services unit, Sequent Energy Management.

A few things to know and do to receive this credit:

Consumers can receive up to $160 total after showing their annual income is less than 150 percent of the federal poverty level or 60 percent of the state poverty level. Customers must contact their natural gas marketer in order to apply for the $160 bill credit.  The bill credit is not automatic, even for customers served on Atlanta Gas Light Company’s (AGL) system who currently receive the low income senior citizen discount each month.  If customers do not call to apply, they will miss out on the credit.

This also is the case of other non-senior citizen low income customers who may qualify, such as SCANA Group 1 Regulated Provider customers.  These customers will need to contact their marketer as soon as possible to apply.

Many people don’t know whether they are served on AGL’s system, since their gas bill comes from their natural gas marketer.  Customers of the following natural gas marketers can apply:

• Commerce Energy
• Coweta-Fayette EMC Natural Gas
• Fireside Natural Gas
• Gas South
• Georgia Natural Gas
• Infinite Energy
• Mx Energy
• Scana Energy
• Stream Energy
• Walton EMC Natural Gas

This money is only available to natural gas customers, not electric customers. Still have questions? Give us a call at (404) 525-1085 or Clare McGuire, Georgia Watch’s director of the consumer energy program.

We recently authored a report titled “Georgia nonprofit hospitals and the vulnerable patient,” which provides an analysis of Georgia nonprofit hospitals and community benefit programs. Read the report here.

In October 2011, we issued a letter to the IRS voicing our concern over the IRS decision and its potential impact on patients. You can read the letter here.

Last spring, Georgia’s insurance commissioner, however, requested leniency on behalf of Georgia’s insurance companies to phase in this provision over three years rather than implement it immediately. This request was a tremendous disservice to the Georgians currently insured through individual policies.

Georgia Watch, along with Georgians for a Healthy Future, asked the US Department of Health and Human Services to deny Georgia’s request. We issued public comments to HHS and we authored an issue brief made available to the public. Luckily, our voice was heard, and a middle ground was struck. The Insurance Commissioner’s Office can still phase in the MLR rules, but at a much faster rate, which is a benefit to all Georgia policyholders with individual insurance. 

Starting in 2012, insurance companies operating in Georgia’s individual market must meet the 80 percent target or provide rebates to their customers. If the new requirement were implemented today, these insurance companies would have to rebate the nearly 350,000 Georgia customers enrolled in their health plans a total of about $42.6 million, or a little more than $100 per customer, on average.

The insurance commissioner’s office did not make an adequate case that the MLR adjustment should be granted. If insurance companies offering low-value, poor quality plans to consumers don’t meet the standard, they should be required to rebate their policyholders, and not receive a free pass. Read our comments here, and read the issue brief here.

The Georgia Public Service Commission is the best resource for comparing prices among the natural gas marketers that provide service to the 1.5 million customers on Atlanta Gas Light Company’s (AGL) system.  Select the “Natural Gas Marketers’ Prices” link at the PSC Home page, to review information each marketer files on a monthly basis regarding its fixed and variable rate plan offerings. The PSC home page also has a link to a “Natural Gas Scorecard” which includes information about the number of billing, service and deceptive marketing complaints received by the PSC each month for each of the natural gas marketers.

If you know someone who does not have access to the Internet, the PSC’s Consumer Affairs division will send that person a hard copy of the monthly marketer pricing charts and/or natural gas scorecard, free of charge.  In metro Atlanta, call 404-656-4501. If outside of metro Atlanta, call toll-free: 800-282-5813.

Some things to consider as you think about which type of plan (fixed or variable) may best suit your needs:

• Your current natural gas marketer may impose an early termination fee if you switch away from this marketer before the expiration of your fixed-rate contract .  It is important to weigh the benefits of locking in at a lower per-therm rate and, perhaps, a lower monthly customer service charge, against the amount of the early termination fee you may incur in order to make a fully informed decision.
• If you decide to switch from one marketer to another (whether you sign up for a fixed rate or a variable rate with the new marketer) you must call the new marketer to request the switch no later than the 19^th of each month in order for the switch to take effect by the 1^st of the next month.
• Terms and conditions vary by marketer, so you should confirm all the details before you agree to any pricing plan. Request verification of your contract terms in writing.
• Unless a customer notifies her marketer before the expiration date of a fixed-rate plan, the marketer will switch (or “default”) the customer to a variable rate plan, the monthly per-therm rate of which may be higher than what the customer was paying when locked in to the fixed-rate plan.
• Pay close attention to any correspondence received from your marketer (whether via U.S. mail or e-mail) regarding the upcoming expiration of your fixed-rate contract termSenior Citizen rate plans:  Some marketers offer plans available to all consumers 65 years of age or older, while other senior citizen plans are based on income limits.
• Additionally, low-income senior citizens qualify for a monthly discount of either $14.00 or the total amount of the AGL base charge, whichever is less.  (See “Senior Citizens Discounts” link at the PSC homepage, or contact AGL or your marketer to see if you qualify and to request an AGL senior citizen discount application.)

PSC rules provide that all customers are entitled to switch marketers once within any 12-month period without incurring the $7.50 AGL switch fee. For more information, call Georgia Watch at (404) 525-1085.

“The opinions from Georgia’s highest court last year had a considerable impact on the rights that consumers have under the law, particularly those regarding the access injured parties have to civil justice,” said Ashley Wilson, Georgia Watch staff attorney. “The Court Watch report is a necessary resource for consumers and legal professionals alike, as many of these cases would simply not be reported otherwise.”

Notable consumer cases discussed include:

• Atlanta Oculoplastic Surgery v. Nestlehutt: A controversial law capping the amount of money an injured patient could recover from a negligent medical provider for non-economic damages was deemed unconstitutional.
• Gliemmo v. Cousineau: The negligence standard for emergency room doctors has been raised, creating a disadvantage and higher bar for plaintiffs to overcome in order to recover damages.
• Smith v. Baptiste: Plaintiffs must now estimate the amount of a potential final judgment of their claims within a range of accuracy and, if they’re wrong, they could face paying the attorney’s fees of the opposing party.
• State ex rel. Doyle v. Frederick J. Hanna & Assocs.: The Court held that debt collection attorneys, who often also operate debt collection outfits out of the same office space or own debt collection outfits, are not subject to the Georgia Fair Business Practices Act.

“Georgia has many procedural hurdles that limit the consumer’s access to civil justice for fear that such access will hamper economic activity and increase the cost of consumer goods and services,” said 2010 Court Watch Fellow Simeon Niles. “Georgia must do more to protect consumers’ access to civil justice, because access to the court system is often the only means to redress for individual consumers harmed by their interactions with the marketplace.”

Click here to read the report.

We stand up for lower utility rates and cleaner, more efficient energy solutions.

We are led by former Public Service Commissioner and Georgia Watch executive director Angela Speir Phelps and former PSC attorney and Georgia Watch senior counsel Clare McGuire.

Over the last two years, the Consumer Energy Program has:

• Pushed for $7 million of aid to assist Georgians with winter heating bills
• Opposed Georgia Power’s massive $2.1 billion rate increase in 2010 on behalf of its 2.4 million customer
• Challenged Atlanta Gas Light’s $54 million rate request in 2010 on behalf of its 1.5 million customers
• Built a broad coalition of business groups and advocacy organizations across the state to oppose utility rate increases in 2010
• Sponsored expert witness testimony and formally intervened in PSC proceedings to represent ratepayer interests
• Advocated for greater transparency and accountability at electric membership corporations on behalf of the state’s 4.5 million EMC customers
• Fought against legislation to require ratepayers to pre-pay at least $1.6 billion of financing charges and taxes for nuclear plant construction by Georgia Power, resulting in $1 billion of early profits for the company

The Consumer Energy Program will continue to advocate for lower utility bills and a more diversified state energy portfolio to mitigate future rate increases.

The Public Service Commission has voted unanimously to adopt a settlement that will result in ratepayers’ footing the entire bill for any and all cost overruns incurred during the construction of Plant Vogtle units 3 and 4, while allowing Georgia Power to continue to earn more than 11 percent if such overruns occur.

“This settlement is yet another example of the Public Service Commission caving in to pressure from Georgia Power and placing the financial interests of the utility above those of everyday hardworking Georgians- including thousands of business customers who are Georgia Power ratepayers,” said Georgia Watch Executive Director Angela Speir Phelps, herself a former public service commissioner.

Since 2010, state regulators at the PSC and attorneys for Georgia Power have been embroiled in tough negotiations over a risk-sharing mechanism (RSM) intended to balance the financial interests of ratepayers and Georgia Power shareholders. On December 10, 2010 the PSC staff proposed a plan that would have allowed Georgia Power to recover from customers all cost overruns deemed prudent by the PSC, and would have provided for incremental downward adjustments to Georgia Power’s profit if the price tag ballooned above the $6.1 billion dollar projected cost. The plan also provided an incentive to Georgia Power to finish the units on time and under budget. Georgia Power strongly opposed the staff proposal. Throughout the RSM hearings before the PSC, Georgia Watch supported the PSC staff’s December 2010 RSM and advocated for a proposal that would better align the interests of ratepayers and Georgia Power shareholders.

Today, commissioners approved a settlement, which not only leaves ratepayers solely responsible for cost overruns, but allows Georgia Power to collect its normal profit margin of more than 11 percent. Regulators apparently caved in to Georgia Power’s firm opposition to an RSM, leaving Georgia Power ratepayers vulnerable to an unlimited price tag on cost overruns.

“Commissioners approved a plan that actually rewards Georgia Power shareholders if and when the project goes over budget, as long as the Commission finds that the cost overruns were reasonable,” said Georgia Watch Consumer Energy Director Clare McGuire.
Commissioners originally called for the RSM negotiations because of the notoriously risky nature of nuclear plant construction. The last two reactors built in Georgia were estimated at $600 million, but wound up costing more than $8 billion.

Last week, Southern Company CEO Tom Fanning said that the Nuclear Regulatory Commission might not issue the construction and operation license for the Vogtle units until early 2012, which is later than Georgia Power (Southern Company’s largest subsidiary) had expected. Despite this potential setback , Georgia Power officials insist the project is still on schedule and the first reactor will come online in 2016.

Georgia Power is already collecting more than a billion dollars of early profit on the Vogtle project as a result of state legislation passed in 2009, even though it will be years before the reactors become operational. Georgia Power also recently received PSC approval to raise base rates by more than 10 percent, causing customers throughout the state to complain about soaring summer bills.

For more information on the RSM negotiations, click here.

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.

Yesterday the PSC held its final public discussion on the RSM issue. By all accounts, a majority of the commissioners appear ready to approve the settlement at the Commission’s Administrative Session on Tuesday, August 2nd.

“The settlement currently before the commission leaves ratepayers completely exposed to cost overruns, without any potential relief whatsoever,” said Georgia Watch Consumer Energy Director Clare McGuire, who spoke at Thursday’s committee meeting. “Ratepayers will be solely responsible for cost overruns and, in addition, Georgia Power will earn its normal profit margin of more than 11 percent even if the project comes in over budget.”

Georgia Watch has repeatedly advocated for the adoption of a risk sharing mechanism proposed by Staff in December 2010, which provides for an incremental decrease to Georgia Power’s profit margin if costs balloon to more than $300 million over the already-certified $6.1 billion project cost. This December proposal would allow Georgia Power to recover all project costs deemed prudent by the PSC, even if these costs are above the certified amount.

“The December RSM calls for Georgia Power to put at least some skin in the game while providing a minimal level of protection for ratepayers,” said McGuire. “Given the notoriously risky nature of nuclear plant construction and the high likelihood of cost overruns associated with such projects, there needs to be a mechanism in place to limit ratepayer exposure to cost overruns.”

McGuire stressed that the only way to ensure some baseline, minimal protection for ratepayers is for the Company’s profits to be tied, in some way, to the total project costs and that anything less affords no protection whatsoever to ratepayers from the likely cost overruns associated with a nuclear construction project of this magnitude.

“If the Commission approves this settlement, nothing will have been accomplished beyond maintaining the status quo of unlimited ratepayer exposure to total project costs for this multibillion-dollar project,” said McGuire.

For more information on the RSM negotiations, click here:

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.”

To read the entire brief regarding the need for an RSM, click here. For more information about the RSM negotiations between state regulators and Georgia Power, click here and here.

The five-member PSC will vote whether to adopt a risk sharing mechanism on August 2nd.

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.

Despite these red flags, Georgia Power has taken a firm position against any risk sharing mechanism that impacts its profit margin.

“If Georgia Power gets its way, ratepayers would be solely responsible for paying for all cost overruns, even though they have no control over the construction process,” said McGuire. “We believe Georgia Power’s shareholders should take on some of the burden in case the project goes over budget.”

Georgia Watch and PSC Staff are urging commissioners to adopt a RSM that would reduce Georgia Power’s profit margin in the event of cost overruns and provide financial incentives to finish the project on time and under budget.

“The Commission’s adopting a risk sharing mechanism would be exceedingly reasonable and more than fair to Georgia Power. Not only would Georgia Power recover all prudently-incurred costs, but Georgia Power would continue to earn substantial profits– even if cost overruns materialize,” said McGuire.

McGuire reiterated that the only aspect of the project impacted by an RSM agreement is the amount of profit Georgia Power will earn. On a Vogtle-related note, the Company is already collecting more than a billion dollars of early profit through state legislation passed in 2009 that allows Georgia Power to collect the prepayment of financing charges for the two new units under construction at Plant Vogtle, even though these units are not scheduled to go online until 2016 and 2017, respectively. Customers began paying this charge in January 2011, the same month in which Georgia Power’s most recent rate increase took effect.

“Georgia Power is already collecting financing charges for reactors that aren’t even built yet. Now they want ratepayers to be on the hook for the entire bill if construction costs balloon. It’s unfair to customers, who deserve some protection from getting stuck with the tab for likely and potentially huge cost overruns,” said Angela Speir Phelps, Georgia Watch Executive Director and former PSC commissioner.

The five-member PSC will vote on the matter on August 2.

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.”

According to the report, electricity customers in Georgia will feel the impact of Plant Washington in the following ways:

• During the first year of operation, the average electric rate increase would be 16 percent, eight times higher than what consumers might normally expect.
• In actual dollars (for an average household using 1000 kWh per month) this is an average additional cost of $208.00 to the household budget annually. Depending upon where consumers live, the annual increase would range from $165 to $240.
• During the early years of Plant Washington’s coal-fired operation consumers can expect at least an additional $50.00 annual charge to pay for the cost of new carbon regulations.
• Considering the full impact of future energy regulation, the costs of Plant Washington could raise annual prices by an estimated $258 per year for the average household.

Georgia Watch executive director Angela Speir Phelps said:

“For consumers and organizations such as ours that act as a watchdog for consumers, Plant Washington is a bad investment and an even worse liability-in-the-making for Georgia. When we see evidence as in today’s report of electric bill increases for recession-strapped consumers that would be eight times higher than necessary, we are obligated to point out that Plant Washington is not a fiscally responsible choice given the high pricetag and the uncertain regulatory climate. If more power is needed in Georgia, it should be the most affordable power possible for consumers.”

Report author Tom Sanzillo, financial advisor with TR Rose and Associates, said:

“If Plant Washington is built it will cause upward pressure on electricity prices. Among the reasons driving the plant’s high cost are increasing construction costs, rising regulatory costs, volatile coal prices and cheaper, more readily available competitive energy sources. By mid 2011, 153 new coal plant proposals have been canceled across the nation and many utilities are now announcing retirements of existing coal plants. Few new coal plant proposals are moving forward. Those that have proceeded with construction face significant cost increases. When plant developers have continued to pursue new coal plant proposals, hoping conditions would improve, they have often canceled plant construction, thus leaving consumers with large bills for development costs but also with no new electricity resources. Fundamentally, lack of investment in new coal plants is a result of current economic conditions in which coal plant finances do not work.”

Clare McGuire, director of the Consumer Energy Program, Georgia Watch said:

“The plant developer, Power4Georgians, has not provided its customer members with vital information regarding the plant’s finances or a sound, detailed explanation about the expected impact of Plant Washington on customer rates. Whether the plant moves forward or not, the EMC members who will potentially be saddled with steep rate increases are entitled to a thorough explanation. The only way to ensure transparency is by P4G’s conducting a cost-benefit analysis regarding the construction of Plant Washington that uses reasonable assumptions and conforms with industry standards. ”

Mark Hackett, concerned Cobb EMC customer, said:

“As a customer of Cobb EMC who also has spent twenty five years in the electric utility industry, I have a unique perspective on the dramatic cost increases which can occur when new generating facilities are added to rates. The study produced by Georgia Watch through TR Rose Associates raises significant questions regarding the rate impacts of the power plant proposed by Power4Georgians. Power4Georgians and Cobb EMC should publish economic analyses and pro-forma financial statements and rate impacts, just as Georgia Power does when presenting their plans to the Georgia Public Service Commission. Georgia’s EMC customers have the right to expect open and honest discourse regarding this decision which may have such a significant hit on our wallets.”

Plant Washington Background

Power4Georgians is a consortium of EMCs that is sponsoring the development of Plant Washington. Plant Washington is a proposed 850 MW, supercritical, pulverized coal-fired electric generation facility to be located in Sandersville, Georgia in Washington County. According to P4G, the proposed plant will provide base load energy to meet the expanding needs of the metro Atlanta area. P4G estimates the cost of the plant at $2.1 billion, with an approximate four-year construction period once permits are granted.

About the Report Author

Tom Sanzillo joined TR Rose Associates, a public policy and financial consulting firm in New York City, in 2007. From 1990 to 2007, Tom served in senior management positions to the publicly elected Chief Financial Officers of New York City and New York State. From 2003 to 2007, Sanzillo served as the First Deputy Comptroller for the State of New York. He was responsible for a $150 billion globally invested public pension fund; oversight of state and 1600 units of local government budgets and public debt offerings; audit programs for all state agencies, public authorities (including power generation authorities) and local governments, and review and approval of state contracts. Due to an early resignation of the elected State Comptroller, Sanzillo served for a short period as the New York State Comptroller from 2006-07.

*For the complete Plant Washington report, click here.

*For an mp3 audio stream of today’s 1:30 p.m. news conference, in which Angela Speir Phelps, Clare McGuire, Tom Sanzillo, and Mark Hackett took questions from media, click here.

The Georgia Hospital Accountability Project broadens accessibility to affordable, safe and effective care at the state’s hospitals for uninsured, underinsured and low-income Georgians by promoting state-level regulations, advocating for hospital policy changes and promoting consumer empowerment through research and analysis, the publication of relevant reports, the engagement of the state’s hospitals and consumer education. Georgia Watch also actively engages key state-level stakeholders, hospital representatives, community leaders and lawmakers in dialogue on these topics.

Highlighting and combating the challenges of low-income, uninsured and underinsured Georgians at hospitals has long been a top priority of Georgia Watch. Since 2007, Georgia Watch has evaluated issues of access and affordability throughout the state, and has conducted detailed analyses of fiscal practices and community benefit offerings of six of the state’s key safety net facilities. In 2009, the organization officially launched its Georgia Hospital Accountability Project.

Through this effort, Georgia Watch:

• Conducts extensive research on community benefit programs and financial assistance policies at nonprofit hospitals, and regularly meets with hospital leaders to discuss challenges to and opportunities for programs within their communities
• Often authors white papers and reports on crucial topics, including an examination of the affect of the new health law on hospitals, the cost of care in Georgia and the need for adequate language services at hospitals. In 2010, Georgia Watch released a report detailing financial access at hospitals within the metropolitan Atlanta area, which delineated other barriers to care for those who are uninsured and underinsured, such as transportation and health literacy
• Actively works with the media, and authors regular op-eds and blog posts dedicated to the project’s core topics
• Engages consumers in its work, and in 2010, surveyed approximately 900 consumers on issues of affordable access at their local hospitals
• Assists numerous consumers on their particular issues, including billing discrepancies, a denial of financial assistance and finding a health care home
• Educates lawmakers, policy makers and advocates on issues of access at hospitals
• Hosts the Health Policy Fellowship, which trains emerging policy leaders on key access and affordability issues

Georgia Watch’s Hospital Accountability Project also actively advocates for transparency and accountability in regards to patient safety at our hospitals. Georgia is one of 22 states that currently do not require public disclosure of hospital-acquired infection rates, which leaves consumers in the dark as to which hospitals are safe and which are not. Georgia Watch is leading the effort to ensure safe care by convening national, state and local stakeholders that will analyze and recommend recourses to make certain patient care is not harmful.

June 16, 2011

Georgia Watch, the Campaign for Better Care and Piedmont Healthcare are proud to host “Town Hall Conversation: Safely and Effectively Navigating Healthcare Today” on Tuesday, June 28, from 6 p.m. to 8 p.m. at the Atlanta Community Food Bank. The event will kick off the national Campaign for Better Care’s Healthy Hospital Initiative, which aims to improve patient safety at hospitals and bring about greater clarity when navigating the healthcare market.

“Georgia Watch is proud to be a key partner in these ongoing efforts to make healthcare safer and more accessible for patients,” said Holly Lang, Georgia Watch’s Hospital Accountability Project Director. “Healthcare is tremendously difficult to navigate on one’s own. We hope this event will give consumers and patients the information and resources they need to stay safe at our hospitals.”

The community event will serve as the launch of efforts by health leaders to seek pledges from area hospitals, providers and consumer groups to lower infection rates and reduce readmission rates. Called the Partnership for Patients pledge, health advocates are seeking a set of formal commitments from hospitals and providers to better engage with patients, improve provider-patient communication, and increase coordinated, patient-centered care.

Click on image to read flyer

“With billions of dollars in resulting costs accrued from hospital readmission every year, patient safety is essential to ensuring both the physical and fiscal health of Georgians,” Lang said.

Patient safety has long been a priority for Georgia Watch, as 1.7 million HAIs are reported annually, affect approximately one in every 20 patients, and result in 100,000 deaths. These disturbing statistics are particularly devastating to seniors and others who are most vulnerable to breaches in patient safety.

In addition to discussion and education focusing on patient safety, health experts will cover the consumer impact of the new federal healthcare law. The forum will include health screenings, mobile health units, and food and beverages. Joining Georgia Watch are partners Piedmont Healthcare, Campaign for Better Care, Georgians for a Healthy Future, the Center for Pan Asian Community Services, the Urban League of Greater Atlanta and the Georgia Coalition for the People’s Agenda.

If you are interested in attending or would like additional information, please contact Georgia Watch’s Hospital Accountability Project at hap@georgiawatch.org or by calling (404) 525-1085. All are encouraged to join!

Many Georgia hospitals aren’t doing enough to ensure accessibility for non-English speakers, according to a report (pdf) released this week by Georgia Watch’s Hospital Accountability Project. Most hospitals throughout the state are required to follow basic language accessibility regulations set forth by Title V1 of the Civil Rights Act, the Affordable Care Act, and the Indigent Care Trust Fund.

But too many are doing the bare minimum to lower barriers for those with limited English proficiency, if anything at all. In a recent survey of more than 90 Georgia hospital websites, only about one-sixth had information on available financial aid programs in a language other than English and Spanish. In diverse communities, such as DeKalb and Gwinnett counties, many languages are common, such as Chinese, Vietnamese and Burmese.

“Not only do we need hospitals offering translated materials in multiple languages, but we would like to see greater initiative by hospitals in providing interpreters trained to assist patients from a variety of cultural backgrounds,” said Holly Lang, Hospital Accountability Project Director. “It will not only improve care but it will also help hospital bottom lines by resulting in less medical errors and duplicated or unnecessary services and tests.”

In addition to detailing language access issues at Georgia’s hospitals, the report puts forth four main policy recommendations to help lower barriers to non-English speakers. They are:

• Compliance with existing laws: Hospitals and other providers should ensure they act in accordance with existing regulations to best serve their patients and themselves. This includes the translation of all key written materials and signage indicating the availability of financial assistance and other key hospital programs and policies.
• Education of staff on language access policies and programs: Hospital and provider staff that work with patient accounts should be made familiar with policies, laws and obligations the hospital has to the patient in regards to translation and interpretation services. Hospitals should also ensure that staff who may greet a patient – such as those at an information desk – should be well-equipped to address the language needs of a patient by either being bi- or multilingual themselves or by having immediate access to adequate language services.
• Cultural competency training: Hospitals and providers should require relevant staff to undergo cultural competency training as to best equip their staff with the necessary skills and resources to adequately address the needs of patients who know a limited amount of English.
• Thoughtful community health needs assessments: Private nonprofit hospitals should make efforts to include non-English speaking populations in their tri-annual community health needs assessments, and develop appropriate programs to address that population’s particular and unique needs.

As Georgia continues to attract a growing population of residents with limited English proficiency, Georgia Watch continues to push for increased efforts on the part of hospitals to ensure all patients are made aware of their medical and financial options.

“No matter the patient’s language, hospitals have an obligation to their communities to practice fair billing practices and equal access to care,” Lang said. “All patients deserve affordable, accessible care delivered in a manner they understand.”

To access a PDF copy of the report, click here.

It will soon be cheaper and easier for Georgians to enroll in the federal high-risk insurance plans that provide crucial coverage to those with pre-existing conditions. In an effort to spark enrollment in this key provision of the Affordable Care Act, Health and Human Services officials announced Monday that premiums in Georgia will drop by 15.5 percent. Additionally, consumers will no longer need to provide a rejection letter from private insurers, as previously required.

“We are hopeful that these lower rates and easier application process will help more Georgians receive the coverage they need and deserve,” said Georgia Watch Hospital Accountability Project Director Holly Lang.

Currently, only about 515 Georgians are enrolled in the pre-existing condition plan, though it is estimated that more than 200,000 could benefit from these plans. Currently, monthly premiums range between $147 and $633, depending on your age and type of plan.

Georgia is one of 23 states whose high-risk pool is operated by the federal government. The high-risk pool is meant to help those with medical conditions have coverage until 2014, when insurance companies will no long be able to deny coverage or charge higher rates.

To be eligible for these plans, applicants have to have been uninsured for at least six months and have to have a documented pre-existing condition that is proven by a doctor’s note. The lowered premiums will go into effect July 01, 2011. To learn more, visit GaHAP.org or PCIP.gov.

For more information, go to the Georgia Hospitial Accountability Project website by clicking here.

May 31, 2011

Georgia is experiencing an extreme heat wave that can be dangerous – especially to the most vulnerable, such as the elderly, sick, and very young. When temperatures rise, Georgia Power customers should be aware that Georgia Power cannot disconnect service when the National Weather Service has issued a heat advisory, as predicted for tomorrow.

The extreme weather rule has been in effect since January 2009 and is part of the Public Service Commission’s seasonal restrictions, which also includes a ban on disconnections during winter months when temperatures fall below 32 degrees.

The National Weather Service is expected to issue a heat advisory tomorrow, with possible record-setting temperatures projected in the high 90s. The National Weather Service issues heat advisories if there is at least an 80 percent chance that the heat index during the day will reach a high of 105 degrees, and at night, a low greater than 75 degrees, for at least two dates in a row.

Georgia Watch Executive Director Angela Speir Phelps, who proposed the protective rule when she served as a Commissioner on the Public Service Commission, says it is absolutely vital we protect the most vulnerable Georgians in the event of extreme heat.

“Customers across the state should remember that Georgia Power cannot disconnect them on the hottest days. They are protected from shutoffs during the harshest days of summer,” says Speir Phelps. “It’s also important for us to keep an eye on neighbors to make sure they’re not suffering without air conditioning during the extreme heat.”

In 2007, a two-week heat wave throughout the Southeast claimed the lives of more than 40 people.

Studies by the Centers for Disease Control and the Environmental Protection Administration show that a heat index of 105 degrees can be life threatening. Urban areas, in particular, are at risk of “heat islands” whereby heat is trapped for days after a sudden spike in temperature. This effect can cause severe dehydration and wear down the body’s defenses.

Georgia Watch Consumer Energy Director Clare McGuire says as the weather gets warmer and more energy is needed, consumers should keep in mind some basic energy saving tips so bills don’t get out of hand.

“Georgia Power bills have gone up significantly, with the average consumer paying nearly $15 more per month in 2011 than in 2010,” says McGuire. “To save money it’s a good idea to keep your thermostat set to 78 degrees, use ceiling fans to help circulate the air, clean or replace air filters on a regular basis, weatherize your home and keep curtains or shades closed during the day to eliminate heating from the sun.”

For more summer conservation tips, click here and here.

If you have any questions about ways to save on energy bills or about the PSC extreme weather rule, you can contact Georgia Watch or the Georgia Public Service Commission.

Due largely to lower natural gas prices than expected, the Georgia Public Service Commission (PSC) voted 4-1 today to decrease Georgia Power’s Fuel Cost Recovery (FCR) rate by $0.64 per month for the typical 1000 kWh residential customer.

Georgia Watch formally intervened in the case on behalf of residential and small business customers and supported the decrease.

“While we applaud any decrease in electric bills, this is unfortunately nowhere near enough to offset the skyrocketing increases that took effect in January of this year,” said Georgia Watch Consumer Energy Director and former PSC attorney Clare McGuire. “It’s simply not enough relief to make a real difference in the lives of ratepayers.”

At the start of 2011, the typical residential ratepayer was hit with a base rate increase of about 10%, or $10.88 per month. That amount will ratchet up to almost $18 per month by 2013. In addition to the base rate increase, residential ratepayers this year also began paying the Nuclear Construction Cost Recovery Rider (“NCCR”) charge, which prepays Georgia Power $1.6 billion in financing costs for the construction of two new reactors at Plant Vogtle near Augusta. The charge added $3.73 to the typical monthly bill and will increase to almost $9.00 per month by January 2015.

“In a time of deep recession and high unemployment, Georgia Power customers have seen their bills increase by almost $15 dollars a month, or about $175 per year,” said McGuire. “Commissioners should be taking all necessary actions on behalf of ratepayers to make utility bills more affordable for the average Georgian.”

In addition to this year’s fuel charge, Georgia Power customers are currently in the process of paying down more than $300 million in fuel costs from previous years.

In Georgia, utilities are not allowed to earn profits on their fuel costs, but state law permits electric utilities to recover prudently incurred fuel costs on a dollar-for-dollar basis.

At recent hearings, PSC Staff testified that part of the uncollected $300 million sum is due to overcharges and argued that Georgia Power was directly responsible for a number of plant outages that caused the Company to purchase additional fuel and pass the charges onto customers.

In a letter filed at the PSC on May 17th, Georgia Watch urged the Commission to adjust the uncollected sum so that ratepayers are not saddled with costs caused by Georgia Power’s imprudence.

In today’s vote, commissioners agreed to throw out $5.2 million for replacement fuel costs for an outage at Pant Branch. As for the other plant outages in question, commissioners decided that Georgia Power’s conduct did not rise to the legal standard of imprudence that would have justified a decision against the Company.

“We appreciate the Plant Branch ruling but we’re disappointed that Commissioners didn’t listen to their own advisors and allow customers relief on a number of other imprudent outages,” said McGuire.

According to Georgia Power officials, customers will have paid down the uncollected sum of $313 million by February 2013.