Consumer Groups Slam Georgia Power Bill

January 29, 2009

By SHANNON McCAFFREY Associated Press Writer

Consumer groups on Wednesday blasted legislation that would hike
electric bills for Georgia Power customers arguing it will burden
ratepayers at a time they can least afford it.
The bill would allow Georgia Power to begin collecting interest
early for the construction of two new nuclear reactors at Plant Vogtle
near Augusta years before the construction is completed. It would add
an average of $1.30 a month onto customer's bills beginning in 2011.

Backers argue the financing scheme saves ratepayers money in the
long run. They estimate it will shave $300 million off the $16 billion
expansion.

The bill's sponsor, state Sen. Don Balfour, likened the plan to
buying a new car with cash rather than putting it on a credit card and
having to shell out the interest over time.

"One way or another we're going to pay the cost," the Republican
from Snellville said.

But consumer advocates say the utility is inflating its estimated
cost savings.

Alison Wall, executive director of the consumer group Georgia
Watch, said independent experts tapped by the staff of the state
Public Service Commission actually found that costs could rise under
Georgia Power's proposed plan.

"If we stay the way we are we save consumers money," Wall told a
Senate Regulated Industries and Utilities hearing.

Will Phillips, associate state director for AARP Georgia, said
the bill will result in "significant rate increases even as the
economic downturn is hurting Georgians."

And he said the state's smaller residential customers will bear
the burden of the costs while the biggest industrial and commercial
ratepayers are largely exempt from the new charges.

The state Public Service Commission is also considering Georgia
Power's request. Commission staff who have examined it have
recommended the panel deny the financing plan. The commission is
expected to decide the case in March.

PSC chairman Stan Wise testified on Wednesday that the state
Legislature acting could help Wall Street creditors confidence in the
financing plan and help the utility's credit rating. That, in turn,
helps consumers.

The Senate panel did not vote on the bill Wednesday and said they
will need more time before they take it up.

"This is an enormously complicated issue," state Sen. David
Shafer, the committee chairman, said.

  S.B. 31: http://www.legis.ga.gov