Category Archives: Ethics

What Georgia Power is afraid of: GaSU and Dr. Smith; and you

So what is Georgia Power afraid of that made their CEO Paul Bowers double down on old-style baseload? Competition, that’s what! What could be more scary in the power-monopoly state of the 1973 Territorial Electric Service Act?

GaSU sun On one side, Georgia Power faces GaSU and its 80 or 90 MW solar plant proposal. Walter C. Jones wrote for OnlineAthens 24 September 2012, Proposed solar company could stir up Georgia’s utility structure,

A proposal from a start-up business promises to lower electricity rates by rebating profits to customers if given a chance to compete as Georgia Power Co.’s “mirror image.”

GaSU fb profile image To proceed with its long-range plan of developing 2 gigawatts of solar power, the start-up, Georgia Solar Utilities Inc., wants to start by building an 80-megawatt “solar farm” near Milledgeville as soon as it gets a green light from the Georgia Public Service Commission. GaSU filed its request last week, and as of Monday, it’s still too fresh for public evaluation.

So radical is the proposal that spokespersons for Georgia Power and the Georgia Solar Energy Association said they still were evaluating it and could not comment.

Groups that normally advocate for customers also are staying quiet.

GaSU executives recognize such a big change won’t come easily.

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Southern Company’s three-legged nuclear regulatory-capture stool

The failed EDF nuke project at Calvert Cliffs in Maryland makes it clearer why Southern Company (SO) was the first company to get a nuclear permit in 30 years: it was the only one big enough and monopolistic enough to pull it off. Even then it’s such a bet-the-farm risk that even “great, big company” SO only dared to deploy its great big huge scale equipment with the regulatory capture triple-whammy of a stealth tax on Georgia Power bills, PSC approval of cost overruns, and an $8.33 billion federal loan guarantee:

  1. a legislated stealth tax in the form of a rate hike on Georgia Power customers for power they won’t get for years if ever. If you’re a Georgia Power customer, look on your bill for Nuclear Construct Cost Recovery Rider. You’ll find it adds about 5% on top of your Current Service Subtotal. Georgia is one of only a handful of states where such a Construction Work in Progress (CWIP) charge is legal thanks to our regulatory-captured legislature. Doubling down on bad energy bets, Southern Company is also trying to use CWIP to build a coal plant in Mississippi.
  2. A captive Public Service Commission that rubber-stamps costs for Plant Vogtle. In case there was any doubt as to the PSC’s role in legitimizing those new nukes, the very next day Fitch reaffirmed Southern Company’s bond ratings.

    Southern Company’s regulated utility subsidiaries derive predictable cash flows from low-risk utility businesses, enjoy relatively favorable regulatory framework in their service territories, and exhibit limited commodity price risks due to the ability to recover fuel and purchased power through separate cost trackers.

    Translation: Georgia Power customers subsidize SO’s bonds and SO shareholders’ stock dividends. The PSC also approved cost overruns being passed on to Georgia Power customers, and those nukes are already over $400 or $900 million, depending on who you ask. What do you expect when 4 out of 5 Public Service Commissioners apparently took 70% of their campaign contributions from utilities they regulate or their employees or their law firms, and the fifth commissioner took about 20% from such sources? Hm, there’s an election going on right now!
  3. An $8.33 billion federal loan guarantee. Even that’s not good enough for SO and Georgia Power: SO is asking for less down payment.

And what if even one of that three-legged regulatory capture stool’s legs went away? Continue reading

Charter school referendum preamble is Parent Trigger jargon

 

A pressure group for privatizing schools is the origin of the jargon in the charter school referendum on the November Georgia ballot. And yes, it’s tied to ALEC.

In Our south Georgia school tax dollars would go to Virginia rich people, Karen Noll asserted “…the wording that is on the preamble comes straight out of ALEC documents….” The preamble to the charter school amendment on the November ballot reads:

Provides for improving student achievement and parental involvement through more public charter school options.

Where else is that wording found? Combinations of the three phrases “student achievement”, “parental involvement”, and “charter school” actually are not very common, according to google. But the Parent Trigger wrote in Empowering Parents,

Policy initiatives that empower parents are likely to increase parental involvement and satisfaction and raise student achievement by inviting parents into the process.

What process?

The designers of the California Parent Trigger made a grave mistake by leaving tepid reform modules in the bill and allowing districts to override the parents’ reform choice.

The Georgia constitutional amendment wouldn’t leave school districts any ability to decide anything.

What would the parents’ reform choice be?

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Streetlights and Georgia Power @ Hahira 2012-10-01

To get a decent deal on streetlights, a small Georgia city may have to help change the Georgia Public Service Commission. Or, an energy concern in Hahira happened to coincide with a visit by PSC candidate Steve Oppenheimer.

Ralph Clendenin, City Council member, is looking into converting Hahira's streetlights to LEDs or maybe solar. He has discussed that with Georgia Power, which will do it for $250,000 up front. At a savings of $1,000 a month, that would take quite a while to pay back: more than 20 years.

Steve Oppenheimer, running for Georgia Public Service Commission (PSC), found the streetlight issue interesting:

Just like you're looking at options the city might do for better choices for lighting in terms of serving the people and meeting your budget, as Georgians we need that, too.

He indicated that there are more solutions than we're being told.

To me what's improtant are homeowners rights, and we get control over the power rates, because our residential rates and small business rates have gone up about 31% in five years.

He brought up Dublin's solar streetlights, and solar for energy and jobs. He indicated energy was a future source of jobs.

What it comes down to is people like you in this room in the small communities figuring out what pieces do we put together to make our community better for tomorrow.

Afterwards in the entranceway, Ralph Clendenin showed Steve Oppenheimer how he'd figured out that Georgia Power was charging about 73% maintenance above the electricity cost of the streetlights. Oppenheimer said there were many options. Clendenin suggested one:

The option I see right now is, the Commission somehow, has got to change the rules on how Georgia Power… structures payments.

Oppenheimer suggested a way to get there:

We need a commission with some new leadership, with some separation from industry, that doesn't have the apparent conflicts of interest.

Ralph summed it up pithily:

Ralph Clendenin: 73% is that forever payment to Georgia Power.

Steve Oppenheimer: It's a great deal, if you're on the right end of it.
[laughter]

What say we change the end of the stick we the taxpayers are getting from the PSC?

Here's a playlist.

Work Session, Hahira City Council, Hahira, Lowndes County, Georgia, 1 October 2012.
Videos by John S. Quarterman for Lowndes Area Knowledge Exchange (LAKE).

-jsq

Democrats and Tea Party: both against charter school amendment

In the same month, both the Lowndes County Democratic Party and the Valdosta Tea Party had speakers explaining how bad the charter school amendment is. Neither group took a vote, but it seemed pretty clear most of the attendees at both meetings were against that referendum on the November ballot, and mostly for the same reason: nobody wants an unelected state committee taking away local control and local tax revenue. Parental choice is one thing, and charter schools are another, but nobody seemed to like Atlanta taking away local control.

As the PAGE slides say,

This isn’t a Democrat vs. Republican debate. Legislators voted across party lines to put the constitutional amendment on the ballot. Republican and Democrat voters must defeat it together.

You can watch for yourself. Here are the two presentations:

If you don’t want Atlanta taking away our educational control and local tax dollars, vote No on the charter school amendment in November.

-jsq

The charter school amendment is about control —Dr. Troy Davis @ LCDP 2012-09-10

Lowndes County Schools Assistant Superintendent Troy Davis gave his personal opinion: “it’s about control”. The charter school amendment on the November ballot is not about charter schools, which any community in the state can create now. It’s about control by the state of local schools and resources.

Dr. Davis pointed out Georgia already has 350 charter schools, up from 160 three years ago. All but 19 were established and agreed upon by local communities. There’s a successful one in Berrien County, established by the Berrien County school board. The process to create more is in place in every community. If we wanted one in Lowndes County, all it would take would be for one of the two school systems (Lowndes or Valdosta) to approve one.

He suggested looking at the sources of funds for Families for Better Schools, which is backing the amendment. Top of the list is a Wal-Mart heir. (It’s Alice Walton. Dr. Davis deferred to Al Rowell for that information, and that’s also where I heard about Alice Walton. And as I discovered, the Walton Family Foundation put in much more than that last year.) He noted the bulk of the rest comes from for-profit school operators. (They include K12 Inc. of Virginia.)

He noted that the state of Georgia just passed this fiscal year the third largest budget in the history of Georgia, $19.1 billion. Yet the public schools have been cut $6.6 billion (apparently since 2002). And the Lowndes County school system lost nearly $8 million last year, and $43 million in the past 10 years. So he asked:

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Our south Georgia school tax dollars would go to Virginia rich people —Karen Noll

Received yesterday on K12 CEO Packard: $5M in 2011, up 36% -jsq

Keep in mind that this company is based in Virginia, so our tax dollars from say, South Georgia meant for our school teachers, administraters, supplies, and educating our students, would go to bolster the economy in Virginia and line the pockets of the very rich. Meanwhile we have to raise taxes to simply educate the students attending our public schools. This is clearly NOT a plan to ‘improve academic achievement’ as the preamble boldly lies.

The preamble is boldly inaccurate and completely biased. The wording added to the question on the ballot implies that the amendment would improve student achievement and parent involvement. My stars, what breathing individual doesn’t want those things.

Facts are that by some measures charter schools perform 3% worse than traditional public schools. We would hope that schools where parents have to sign a commitment of parent involvement would have superior parent involvement. Might I just add that students can be kicked out of charter schools and all students are educated in the Traditional Public School setting as per our Georgia constitution.

The ‘biased and inaccurate’ wording in the preamble to the charter schools question is not found in HB 1162, the law that allowed this question to be placed on the ballot. It is not in HB 797, the law thaw would be enacted should the amendment pass. NO the wording that is on the preamble comes straight out of ALEC documents, which are the equivalent of ‘legislation for Dummies’ with a particular slant as you might imagine.

-Karen Noll

Duke Dump ALEC @ DNC 2012-09-05

150,000+ People Demand Duke Dump ALEC --Whit Jones Leaving another event, I saw this on the street in Charlotte. Whit Jones said they’d just had a demonstration demanding Duke Energy dump ALEC. Also that he had encountered Duke CEO Jim Rogers and asked him when Duke would dump ALEC. Rogers was uncommittal. Here’s Jones’ blogged account of that encounter:

In short, I asked Duke’s CEO Jim Rogers if he would listen to the over 100,000 people who are calling on him to have Duke Dump ALEC and stop funding voter repression. He responded that “he’d be listening,” and when I pressed him for a commitment to drop ALEC he said “I’m not going to give you [a commitment right now] but you can trust that I’m paying attention to what you’re saying, and you’ll know in due time.”

Here’s video of the event.

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Green from the Grassroots —Elinor Ostrom

On the day she died, Nobel Prize-winning economist Elinor Ostrom published her last article, in Project Syndicate, 12 June 2012, Green from the Grassroots,

This grassroots diversity in “green policymaking” makes economic sense. “Sustainable cities” attract the creative, educated people who want to live in a pollution-free, modern urban environment that suits their lifestyles. This is where future growth lies. Like upgrading a mobile phone, when people see the benefits, they will discard old models in a flash.

Of course, true sustainability goes further than pollution control. City planners must look beyond municipal limits and analyze flows of resources — energy, food, water, and people into and out of their cities.

Worldwide, we are seeing a heterogeneous collection of cities interacting in a way that could have far-reaching influence on how Earth's entire life-support system evolves. These cities are learning from one another, building on good ideas and jettisoning poorer ones. Los Angeles took decades to implement pollution controls, but other cities, like Beijing, converted rapidly when they saw the benefits. In the coming decades, we may see a global system of interconnected sustainable cities emerging. If successful, everyone will want to join the club.

And counties, and regions, and watersheds, of course. As Mayor Julian Castro of San Antonio said, there is a "nexus between sustainability and job creation." We don't have to wait for San Antonio or Los Angeles or Beijing or Atlanta to lead the way: we can get on with it right here where we are.

-jsq

Industrial Authority has to be congratulated —Michael G. Noll

Received yesterday on WCTV on biomass site VLCIA v. Sterling Planet. -jsq

Wiregrass Activists for Clean Energy (WACE) have made it clear from the start that biomass plants have a number of issues: 1) biomass plants bear significant health risks; 2) biomass plants waste enormous amounts of water; 3) biomass plants are risky investments in an increasingly competitive energy sector; and 4) biomass plants contribute to global warming.

In the light of rising global temperatures, worsening drought conditions, and dropping prices for solar panels, an increasing number of people are understanding these simple truths.

The Industrial Authority has to be congratulated for the courage to admit that energy from biomass plants is indeed more expensive than energy from solar plants, and we have not even figured in the costs associated with the consequences of air pollution coming from biomass plants.

(For more information on biomass plants, here a testimony I recently gave: http://www.bredl.org/pdf3/120828_WACE-Comments-Docket_NO-E-100_SUB113.pdf)

Although this point has already been made earlier, note again that solar plants are much better alternatives, economically and environmentally: they do not pollute our air, they do not need any water, and a huge spill of solar energy is simply called a sunny day … of which we have plenty here in the south.

-Michael G. Noll

-jsq