Tag Archives: CWIP

Georgia General Assembly Votes to Sunset CWIP

stopCWIP_gov3/27/18 ATLANTA — Representatives of the Stop CWIP Coalition delivered a petition containing more than 3,000 signatures to Governor Nathan Deal’s office in support of the recent passage of Senate Bill 355 to sunset the Georgia Nuclear Energy Financing Act of 2009 with the Vogtle 3 & 4 project. The bill is awaiting the governor’s signatures to become law.

In 2013 several groups launched the Stop CWIP Campaign with a petition drive to repeal the 2009 law. The groups forming the Stop CWIP Coalition are: ARRP (Aging Raging Rate Payers), Atlanta Grandmothers for Peace, Center for a Sustainable Coast, Georgia WAND (Women’s Action for New Directions) and Nuclear Watch South.

The groups delivered the petition entitled “Stop the Nuclear CWIP Tax” in support of Governor Deal’s anticipated signature to ratify Senate Bill 355 which sunsets the Georgia Nuclear Energy Financing Act of 2009. The controversial law legalized collection of advance payments for Vogtle 3 & 4 which are under construction in Burke County. The nuclear tariff has been charged on residential and small business electric bills since 2011. The additional Vogtle reactors are currently less than half-built and are at least $5 billion over budget and five years behind schedule. Senate Bill 355 easily passed both the Senate and the House and now awaits Governor Deal’s signature.

Read the whole article: Nuclear Watch South

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Watered down Plant Vogtle bill passes General Assembly

Unknownby Dave Williams
ATLANTA 3/20/18: Utilities building future nuclear power plants in Georgia will not be able to collect financing costs from ratepayers before the projects are completed without the approval of the General Assembly.

The Georgia House of Representatives unanimously passed a bill containing that provision on Wednesday. The measure already had passed the Senate overwhelmingly late last month.

The original version of the legislation introduced into the state Senate in January was aimed at Georgia Power Co.’s nuclear expansion at Plant Vogtle. It would have prohibited the Atlanta-based utility from continuing to recover financing costs associated with the long delayed, over-budget project after the original timetable for completing the work had arrived.

Since the original completion dates for two additional nuclear reactors being built at the plant south of Augusta, Ga., have passed, the measure effectively would have repealed the nuclear “tariff” Georgia Power collects on customer bills each month.

However, Senate Finance Committee Chairman Chuck Hufstetler, R-Rome, the bill’s chief sponsor agreed to remove Plant Vogtle from the legislation as a condition to getting it through the Senate Regulated Industries and Utilities Committee.

As a result, the final version of the bill applies only to any future nuclear plants Georgia Power or any other utility may contemplate building in Georgia. The legislation now goes to Gov. Nathan Deal.

Read the whole article: Atlanta Business Chronicle

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Effort to end financing law gains steam in Ga.

by Kristi SwartzUnknown-2
ATLANTA 2/27/18 — A bill that would end the controversial financing law that’s being used to expand Plant Vogtle passed the Georgia Senate yesterday.

The measure would apply only to future nuclear reactors and would not affect Georgia Power Co.’s Plant Vogtle expansion project. Still, while the proposal (S.B. 355) does no immediate financial harm to Georgia Power, a unit of energy giant Southern Co., it carries major political significance.

Georgia Power is a political heavyweight at the state Capitol. The utility had roughly six dozen lobbyists help move the Georgia Nuclear Energy Financing Act through the Legislature in 2009, allowing the electric company to bill customers for Vogtle’s reactors as they were being built.

At the time, Georgia Power and nuclear supporters argued that doing so would pay down interest costs and save customers money over time. It would also send a signal to Wall Street that the Peach State stood behind Georgia Power building the nation’s first nuclear project from scratch in nearly 30 years.

Vogtle is now the lone nuclear project under construction in the U.S. It is years behind schedule and billions above its forecast budget. The financing costs have now roughly doubled, causing many to question whether the Legislature needed to review the 2009 law.

“If you had asked me at the beginning of the session if any legislation would move in this area, I’d say, ‘Absolutely not,’” said state Sen. Josh McKoon, a Republican from Columbus. “It’s one thing to stir up a hornet’s nest. It’s another to constructively engage Georgia Power, the other players, to come up with something that moves public policy in a direction that [the bill's sponsor] and I think it should be moving in.”

Read the whole article: E&E News

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Georgia Power vs. the law of holes

Plant-Vogtle-construction-2014by Lyle Harris
10/16/17 ATLANTA Georgia Power is likely to get another shot-in-the-arm after announcing plans to complete construction on those ill-fated nuclear reactors at Plant Vogtle near Waynesboro.

A more appropriate response to this epic boondoggle, of course, would be a swift kick in the pants. But don’t count on it.

The Georgia Public Service Commission (PSC) has scheduled hearings on November 6 to discuss the troubled project, Along with the Southern Company (Georgia Power’s corporate parent) and the smaller utilities that are partners on the Plant Vogtle expansion, there’s little reason to worry about some silly old hearings. While the PSC is ostensibly charged with balancing the interests of the utility with those of its customers, the scales are reliably tipped in Georgia Power’s favor.

The planned reactors at Plant Vogtle were supposed to be up and running by now but they’re only about one-third complete. A series of major snafus and setbacks (including the bankruptcy of Westinghouse Electric which designed and was building the reactors) has increased chances that Georgia households will be picking up more of the tab.

Read the whole article: Saporta Report

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Conservative group taking Georgia Power to task on Vogtle costs overrun

4364312_web1_0901NuclearLeadby Tom Corwin
10/11/17 AUGUSTA: A conservative Georgia group is calling out Georgia Power on the cost overruns on two nuclear reactors at Plant Vogtle and wants to repeal a state law that allows the company to pass along those costs to ratepayers while construction is underway.

The call puts the Atlanta Tea Party Patriots on the side of some more liberal groups opposing the project but President Debbie Dooley said some issues appeal to all sides. The group is also vowing to make it an issue in next year’s Public Service Commission elections.

The Atlanta Tea Party opposed Senate Bill 31 in 2009 that allowed Georgia Power to recoup the nuclear expansion costs at Vogtle and has supported efforts since to repeal it. But with the failure of a somewhat similar project in South Carolina at the V.C. Summer nuclear site, and the ensuing fallout over its ongoing burden on those ratepayers, Dooley said she believes there is renewed momentum to make the change in Georgia.

“I think there is a bigger demand for it this time because it is in the news,” she said. In the past, “I think people wanted to give Georgia Power the benefit of the doubt. But there’s no benefit of the doubt now.”

Read the whole article: Augusta Chronicle

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Georgia nuke backers scramble for reasons to keep going

newsEngin.19674583_Southern-AGL.JPEG-0b4bdby Matt Kempner
8/26/17 ATLANTA: There’s a mad scramble underway to come up with new reasons for why Georgians should continue to pay billions of dollars to expand nuclear power in the state. National security! Push back against Russia and China! Healthcare!

Seriously? Yeah, if you believe elected officials, who in the next few days are supposed to get new cost estimates and recommendations from the state’s biggest electric provider.

It seemed like only yesterday when Georgia Power convinced politicians on the Georgia Public Service Commission that a primary reason for expanding Plant Vogtle was because it was the cheapest way to cool our homes, charge our iPhones and keep industry chugging.

Proponents can no longer say that without twitching.

Four years ago, the PSC’s outside financial monitor warned that because of cheap natural gas and, to some extent, rising Vogtle costs, “if a decision had to be made today to build a new nuclear project, it would not be justified on the basis of these results.”

Read the whole article: Atlanta Journal-Constitution

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‘Idle’ workers cited at delayed Vogtle nuclear power project

Unknownby Matt Kempner
6/16/17: Add “idle” workers to the list of troubles at Georgia Power’s struggling nuclear expansion at Plant Vogtle.

Construction workers are supposed to be toiling away on the project that’s already three years behind schedule and falling farther behind.

But a state monitor recently testified that “idle time, early quits and late starts remained high” among construction workers on the first new-from-scratch U.S. nuclear energy project in 30 years.

“Low productivity has been a continuing issue,” according to written testimony by the construction monitor, William Jacobs, and Steven Roetger, a Georgia Public Service Commission staffer assigned to oversight of the project. They cited reviews by a consultant for the project’s contractor.

Attempts to improve the pace of work had little effect on productivity in the last year, they added. In fact, crucial parts of the construction have faced growing delays.

Read the whole article: Atlanta Journal-Constitution

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Millions collected from schools, taxpayers for Vogtle construction

2812409_web1_Plant-Vogtleby Thomas Gardiner

6/11/17: Since 2009, Georgia Power customers have been paying up front for construction costs at the Plant Vogtle nuclear expansion.

Some public entities will have paid more than $1 million for construction before a single kilowatt hour of energy is generated by the expansion.

Georgia Power extended its interim agreement with Westinghouse by 24 hours recently to give the two companies time to finalize a transition agreement as the utility company takes over in the wake of the Westinghouse bankruptcy. That bankruptcy was fueled by cost overruns at the Plant Vogtle and VC Summer nuclear expansion projects.

According to legislation passed in 2009, Georgia Power shall collect costs related to nuclear construction financing and interest to support the plant’s construction, even though the project failed to meet its operational deadline in 2016.

Read the whole article: Savannah Morning News

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PSC Commissioner Moves for Georgia Power to Stop Collecting Nuclear Tax

bubba-2by Gloria Tatum
6/11/17 (APN) ATLANTA — Georgia Public Service Commissioner Lauren “Bubba” McDonald (District 4) filed a motion to give Georgia Power ratepayers a break by asking the company to suspend collecting the nuclear construction tax, or CWIP.

But it had as much chance as a snowball in hell of being honored by the PSC or Georgia Power.  The Commission voted to hold the motion and refer it to the Georgia Attorney General for an opinion, in a four to one vote on June 06, 2017.

“I move that the Commission request that the Company voluntarily agree that as of July 1, 2017, it will stop collecting any financing charges under the Nuclear Construction Cost Recovery (NCCR) tariff,” McDonald’s motion read.

“Effective July 1, 2017, the Company will utilize Allowance for Funds Used During Construction (AFUDC) accounting treatment on the Construction Work in Progress (CWIP) balance of all Unit 3 and 4 capital costs,” the motion stated.

Read the whole article: Atlanta Progressive News

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Southern’s path to ‘first’ new reactor filled with pitfalls

image_asset_18775by Kristi Swartz
6/8/17: Southern Co.’s nuclear expansion project in Georgia was behind schedule even before it got started.

Contractor Westinghouse Electric Co. LLC and the Nuclear Regulatory Commission grappled with design changes for the new AP1000 technology, delaying the agency’s issuance of the major construction license by four months in 2012.

They’ve never been able to catch up.

The delay was small at the time because Southern’s Georgia Power unit and the contractors said they could make up the time in some way. What’s more, the schedule slip meant little compared with the broader story: Georgia Power was restarting the nuclear industry after 30 years with Plant Vogtle.

The twin reactors would start producing electricity in 2016 and 2017.

Read the whole article: E&E News

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