April 20, 2011

As the next step of ongoing negotiations between Georgia Power and state regulators, the Public Service Commission has scheduled special hearings on a proposal to control construction costs for the two new reactors at Plant Vogtle. State regulators at the PSC want to incentivize Georgia Power to finish the new units on time and under budget. They have urged commissioners to adopt a risk sharing mechanism (RSM) that slightly reduces Georgia Power’s profit margin if construction costs rise above $6.4 billion, or $300 million over budget.

Georgia Watch supports the proposed RSM plan. We believe it better aligns the interests of ratepayers and Georgia Power and protects customers in the event of cost overruns.

However, Georgia Power officials are strongly opposed to the proposed RSM, saying the company should be judged on its conduct during the construction process, not the project’s final cost.

Georgia Watch is closely monitoring negotiations and formally intervening at the PSC on behalf of Georgia Power ratepayers.

The schedule for the RSM hearings is as follows:

• April 27, 2011 – Georgia Power files direct testimony on PSC Staff’s proposed RSM
• June 10, 2011 – PSC staff files any direct testimony
• June 24, 2011 – Georgia Power files rebuttal testimony
• July 6, 2011 – Commission conducts hearing on testimony filed by all parties
• July 18, 2011 – Briefs and proposed orders due
• August 2, 2011 – Commission issues decision at Administrative Session

For more informations about the proposed RSM agreement, click here and here.