Associated Press
ATLANTA --- The state Senate paved the way on Wednesday for Georgia Power to begin charging ratepayers early for the interest costs of a $14 billion expansion near Augusta.
The legislation would boost the average Georgia Power customer's electric bill by about $1.30 a month starting in 2011, six years before construction of two new nuclear reactors in Burke County is set to be completed.
The measure passed 38-16 after more than an hour of sometimes heated debate. It must still win House approval.
The bill has been one of the heavily lobbied measures at the state Capitol this session.
Its sponsor, state Sen. Don Balfour, said recouping the interest costs early for construction at Plant Vogtle means ratepayers will pay less in the long run. Company officials estimate it will shave $300 million off the expansion's total price tag.
The Snellville Republican called the bill good for homeowners and good for business.
"If we pass this bill, it helps our economy," Mr. Balfour said.
He said additional energy sources are badly needed if the state intends to keep growing and attracting businesses.
Critics derided the measure as a bad deal for consumers. The complex financing proposal belongs in the hands of the state Public Service Commission, not lawmakers, they said.
The bill largely exempts big industries from having to pay the interest costs. Instead, small businesses and homeowners will bear the burden, state Senate Minority Leader Robert Brown said.
He told legislators that for proof, all they had to do was to consider which lobbyists weren't leaning on them to vote against the bill.
The bill allows Georgia Power to collect an estimated $1.6 billion in financing costs up front.
Georgia Power argues that nearly every other state in the Southeast allows for the early collection, which is needed to provide certainty to the financing scheme, they argue.
Georgia Power says if it didn't begin charging customers early, electric bills would rise by $5.85 in 2016 and again in 2017, for a total of $11.70.
The state Public Service Commission must also approve Georgia Power's proposal on the nuclear expansion. Commission staff have recommended the panel deny the financing plan.
The commission is expected to decide the case in March.
SENATE MEASURE
ABOUT THE BILL: Senators approved legislation that would allow Georgia Power to collect -- up front -- an estimated $1.6 billion in financing costs for the expansion of Plant Vogtle. Georgia Power operates the nuclear-powered plant with three other power companies.
IF IT PASSES: Georgia Power estimates customers' bills would gradually rise from an additional $1.30 a month in 2011 to $9.10 per month by 2017.
WHAT'S NEXT: The bill goes to the House for approval.
