House OK's Nuke Financing Scheme
Feburay 26, 2009
ATLANTA (The Associated Press)
Georgia Power customers could pay an average of $1.30 more per
month on their electricity bills beginning in 2011 under a bill
approved by the Legislature on Thursday.The House voted 107-66 to approve the financing scheme that would
begin collecting about $1.6 billion in costs for the utility to expand
its nuclear plant near Augusta. The measure has already cleared the
state Senate and now heads to Gov. Sonny Perdue for his signature.
Perdue has given no signal on whether he will sign the bill.
But his chief of staff, Ed Holcombe, worked nearly four decades at the
utility, part of that time as its chief lobbyist.
Critics complain the bill charges consumers for interest and
shareholder equity costs on two new nuclear reactors at least six
years before they're completed. Backers say it will ultimately save
money by trimming some $300 million of the project's estimated $14
billion price tag.
The $1.30 average increase on bills would gradually rise to an
additional $9.10 a month in 2017. Supporters said rates would go up to
pay for expansion either way, but the legislation slows down the
increase and will ultimately save money.
Georgia Power, a subsidiary of Southern Co., says that if they
didn't begin recouping costs early, electric bills would rise by $5.85
in 2016 and again in 2017, for a total of $11.70.
The bill's House sponsor, state Rep. Ben Harbin said the
legislation saves ratepayers money in the long run.
"The debate is about whether our consumers should have to pay
$300 million more or not," the Republican from Evans said.
Critics blasted the bill as bad for consumers who are being asked
to pony up extra money before they see any benefit.
"Would you make your house payments for several years before they
hand you the key?" state Rep. Rob Teilhet, a Smyrna Democrat, said.
Of the $1.6 billion in costs that Georgia Power wants customers
to prepay, roughly $1 billion would go to company shareholders. The
remainder would go to pay down debt costs. Company officials said the
return paid to shareholders is required by investors for them to put
their money into the nuclear project.
Georgia Power has dispatched a number of high-powered lobbyists
to push the bill. They have spent thousands of dollars on meals and
sports tickets for state lawmakers in recent months. Consumer advocate
Clark Howard and the watchdog group Georgia Watch have been battling
against the bill.
The measure is the first major piece of legislation to win
approval from both chambers this legislative session.
The state Public Service Commission must still approve the
planned nuclear expansion. It's set to take up the issue at a meeting
in March. The PSC is also expected to consider a separate Georgia
Power request for an electric rate increase. Georgia Power says it
needs to charge consumers more to make up for soaring fuel costs.
On the Net:
Senate Bill 31: http://www.legis.ga.gov
ATLANTA (The Associated Press)
Georgia Power customers could pay an average of $1.30 more per
month on their electricity bills beginning in 2011 under a bill
approved by the Legislature on Thursday.The House voted 107-66 to approve the financing scheme that would
begin collecting about $1.6 billion in costs for the utility to expand
its nuclear plant near Augusta. The measure has already cleared the
state Senate and now heads to Gov. Sonny Perdue for his signature.
Perdue has given no signal on whether he will sign the bill.
But his chief of staff, Ed Holcombe, worked nearly four decades at the
utility, part of that time as its chief lobbyist.
Critics complain the bill charges consumers for interest and
shareholder equity costs on two new nuclear reactors at least six
years before they're completed. Backers say it will ultimately save
money by trimming some $300 million of the project's estimated $14
billion price tag.
The $1.30 average increase on bills would gradually rise to an
additional $9.10 a month in 2017. Supporters said rates would go up to
pay for expansion either way, but the legislation slows down the
increase and will ultimately save money.
Georgia Power, a subsidiary of Southern Co., says that if they
didn't begin recouping costs early, electric bills would rise by $5.85
in 2016 and again in 2017, for a total of $11.70.
The bill's House sponsor, state Rep. Ben Harbin said the
legislation saves ratepayers money in the long run.
"The debate is about whether our consumers should have to pay
$300 million more or not," the Republican from Evans said.
Critics blasted the bill as bad for consumers who are being asked
to pony up extra money before they see any benefit.
"Would you make your house payments for several years before they
hand you the key?" state Rep. Rob Teilhet, a Smyrna Democrat, said.
Of the $1.6 billion in costs that Georgia Power wants customers
to prepay, roughly $1 billion would go to company shareholders. The
remainder would go to pay down debt costs. Company officials said the
return paid to shareholders is required by investors for them to put
their money into the nuclear project.
Georgia Power has dispatched a number of high-powered lobbyists
to push the bill. They have spent thousands of dollars on meals and
sports tickets for state lawmakers in recent months. Consumer advocate
Clark Howard and the watchdog group Georgia Watch have been battling
against the bill.
The measure is the first major piece of legislation to win
approval from both chambers this legislative session.
The state Public Service Commission must still approve the
planned nuclear expansion. It's set to take up the issue at a meeting
in March. The PSC is also expected to consider a separate Georgia
Power request for an electric rate increase. Georgia Power says it
needs to charge consumers more to make up for soaring fuel costs.
On the Net:
Senate Bill 31: http://www.legis.ga.gov