ATLANTA --- The debate over how to charge Georgia Power customers for construction of two nuclear reactors triggers a sense of deja vu for Joel Greene.
The Jesup accountant was a Democratic House member in 1980 when the company made the same request. The utility wants permission to charge customers for the reactors before they're switched on.
"I'm still against it," Mr. Greene said recently, noting that he only learned of this year's bill while visiting the Capitol two weeks ago with his local Farm Bureau. "If it's such a good deal, then the stockholders of Georgia Power can go ahead and (pay for) it."
As in 1980, legislation has passed the Senate to permit the upfront finance charges.
The sticking point, critics say, is that if the company has what amounts to a blank check, customers could be stuck with the cost of budget overruns. The original two reactors soared from a projected cost of $660 million to $8.9 billion, forcing the company to find other ways to share the cost.
In 1980, Mr. Greene dropped a wrench into the gears during last minute consideration of the legislation with an amendment that essentially gutted the bill..
The current bill by Sen. Don Balfour, R-Snellville, deals with how Georgia Power's customers would pay for doubling the number of reactors at Plant Vogtle near Waynesboro.
Georgia Power and its parent, Southern Co., don't own Plant Vogtle outright or consume all of its output, just 46 percent. The facility's other owners, Oglethorpe Power Corp., the Municipal Electric Authority of Georgia and the city of Dalton Utilities don't need state permission to charge their customers up front, but Oglethorpe's former president said it was a bad idea and testified against Georgia Power's request.
The Public Service Commission is holding hearings on the matter. Critics of Mr. Balfour's bill say the legislature should leave the matter to the PSC, which is made up of pro-business Republicans.
During Senate debate, Mr. Balfour argued the bill saves money by paying off the financing before the interest compounds.
"This bill will reduce power rates," he said.
Reach Walter Jones at (404) 589-8424 or walter.jones@morris.com.
Comments
I understand how the "precollection" can lower power rates, theoretically, but I don't see how this will work in real life. If there are cost over runs, won't this justify using the precollected money and still raise rates? I think it's the job of Ga. Power to try to get money anyway it can, but if it doesn't reach the level of "deciding factor" for building the additional reactors, the precollection is a bad idea for the customer.
i will be living in north carolina by the time this reactor is online, but not before they propose to pre-collect a fee from me. the people that are going to be using that power can pay for it when they actually use that nuclear-generated power. leave me out of it.
By the way Public Service Commission,I'd like my state tax refund before I fill out my forms. Oops!!! I might owe them? This in theory sounds great.Lets hope this will keep future rates low.
First off, Patricia, no one is saying that the "pre-collection" will lower power rates. What the power company is saying is that if they "pre-collect" now, then the long-term rate INCREASE once the two new reactors come on line will be less than it would be if pre-collection is not allowed. Rate payers have to pay for the facilities in the end no matter which method they use.
Why can't they sell stock or bonds to the public to finance this thing. I agree we need the power, but I'd rather not have a rate increase during the current recession and the coming inflationary years that would hurt a lot of our citizens. If given the opportunity to invest a little money, I'd take it. Bet there are others like me.
Why is it that utilities can raise the charges but public business can not raise their prices up just because they want to expand a business? I know the whole factor is to make money, but what if I owned a gas station and wanted to expand could I raise the price of MY gas ? Heavens no that would be price gouging.
I think the utilities ought to have to use their own money to build new reactors.
Buy Southern Company stock
I shouldn't have to pay school taxes because I have no kids.... grow up GA PWR!!!!!! Go Nukes! But let the utility pay for it.
GA Power and other utility companies know how to rip off the customer and they know how to cajole the PUC into giving them what they want. GA Power gets more than enough from its customers; if they budgeted correctly, they would have the funds needed for R/D and not raise the rates. I don't believe in cleaning up after them (a couple years ago, they wanted money to clean up a failed 'experiment;' the PUC granted them the right to raise our utility bill by a small percentage). Telephone, cable/satellite companies tack on all these unnecessary 'user fees' that should be outlawed because we are already paying for the services. While these companies whine and complain they did not make a profit, the records reflect otherwise--it was a matter of how many millions separated reality from anticipated gains. Astute citizens call this GREED. The PUC is NOT a friend of the consumer--wonder how much kick-back they receive each year!
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