Tag Archives: corruption

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 →

ALEC behind Georgia charter school referendum

ALEC has been pushing charter schools in Georgia, both through “our state legislators” sponsoring bills and through the National Association of Charter School Authorizers (NACSA). We already got that private prison customer law HB 87 from ALEC; why would we want to approve an ALEC-sponsored law to let Atlanta siphon public school money to charter schools?

Salvatore Colleluori & Brian Powell wrote for MediaMatters 9 May 2012, How ALEC Is Quietly Influencing Education Reform In Georgia,

Georgia media have been silent as members of ALEC in Georgia’s legislature have successfully pushed through a version of ALEC’s Charter Schools Act, which would create a state-controlled board with the power to establish and fund charter schools over local opposition. A Media Matters analysis found that while Georgia media have frequently written about the bills, they have completely overlooked ALEC’s influence in the debate.

The article details how at least two of the statehouse sponsors of the relevant bills are ALEC members: Speaker Pro Tempore Jan Jones R 46 and Majority Whip Edward Lindsey R 54. Remember them, from the list of Georgia Legislators with ALEC Ties? You thought maybe that list was hypothetical and of little effect? Nope, these bills echo ALEC model charter school legislation, and these ALEC legislators actively pushed them into law. Plus look at the titles these two legislators have on their own legislative websites: Speaker Pro Tempore and Majority Whip. How close is that to our legislature being owned lock, stock, and barrel by ALEC?

But wait! There’s more…. Lee Fang wrote for Republic Report 14 May 2012, Charter School Lobby Group Quits ALEC Two Days After Being Identified By Republic Report,

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Georgia would send much more money per student to charter schools than to public schools

An AJC columnist asked the state Department of Education to check figures from Herb Garrett, Executive Director of the Georgia School Superintendents Association, that the proposed charter school law would have the state send much more money per student to charter schools than to public schools. The DoE confirmed it. We can’t afford to have public schools sucked dry for Atlanta-picked charter schools. And yes, this is another ALEC boondoggle.

Maureen Downey wrote for the AJC today, Under new law, state will send more funds per child to state charter schools than local systems

Given this funding disparity, though, it would make far more sense now for aspiring charter schools to seek state approval rather than local.

We need the state to fund public schools determined by local school boards; we don’t need the state rigging the system to divert public school funds to Atlanta-chosen charter schools.

The Democratic primary ballot had an opinion item about charter schools:

Democratic Party Question 1: Should the Georgia Constitution be amended to allow the state to override locally elected school boards’ decisions when it comes to the creation of charter schools in your county or city?

Democratic voters said by 56% they don’t want the charter school law.

However, that primary question was non-binding. The real charter school referendum will be on the November general election ballot. Here’s yet another reason to vote it down.

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Southern Company shutting some coal generation

Southern Company (SO) is reducing its coal fuming and making the rest comply with EPA regulations, and is surprised to discover that won’t cost nearly as much or take nearly as long as it complained only 8 months ago. But remember SO isn’t even abandoning coal and is shifting to big-plant baseload natural gas and nuclear while avoiding distributed solar and wind power.

Cassandra Sweet wrote for Dow Jones and the WSJ 25 July 2012, 2nd UPDATE: Southern Co. Second-Quarter Profit Up as Economy Improves,

Southern Co. plans to shut down about 4,000 megawatts of older, coal-fired power plants to comply with stricter federal pollution rules.

How much coal generation is that? SO’s Plant Scherer near Juliette, Georgia, the largest power plant in the western hemisphere, burning 12 million tons of Wyoming coal every year, is the “nation’s No. 1 producer of carbon dioxide — the heat-trapping gas that is held chiefly responsible in models of global warming” (number two is SO’s Plant Bowen near Cartersville and number three is SO’s Plant Miller in Quinton, Alabama). Each of Plant Scherer’s four plants is rated at 880 megawatts, or 3520 MW total. But don’t get your hopes up: one of those four plants is owned by Florida Power and Light and JEA of Jacksonville, Florida. Why should Florida power companies want to shut down a plant that leaves the pollution in Georgia while exporting the power to Florida?

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Professor unrepentant in latest fracking payola case

Apparently the natural gas industry pays professors to greenwash their polluting product, like back in the hey-day of radio record companies used to pay disk jockies to play their records. Remember: natural gas from fracking is the main thing Southern Company and Georgia Power are switching to from coal (not that they’re even abandoning coal, just rebranding it as “21st century coal”). That and their nuke boondoggle at Plant Vogtle. All approved by the Georgia Public Service Commission, all of whose members apparently accept massive direct or indirect contributions from the utilities they regulate. Two GA PSC Commissioners slots are up for election right now.

The professor most recently found to be in the pay of a fracking company when he reported on fracking is unrepentant. Terrence Henry wrote for State Impact Texas yesterday, Texas Professor On the Defensive Over Fracking Money

So the questions remaining are: Why didn’t Groat disclose this in the study? And did he fail to tell anyone at the University about it?

The professor would not agree to an interview, but in an email to StateImpact Texas he says the Public Accountability Initiative report is “a mixture of truths, half truths, and unfounded conclusions based [on] incorrect interpretations of information. I don’t want to discuss it.”

The University of Texas requires that financial conflicts of interest be disclosed by employees when it has “potential for directly and significantly affecting the design, conduct, or reporting of … research or is in an entity whose financial interest appears to be affected by that research.”

Dean Sharon Mosher of the Jackson School of Geosciences says that Groat submitted the financial conflict of interest form to her office in previous years, but that he had not done so this year. “I was not aware that he was still a member of the board,” Mosher tells StateImpact Texas. “Had I known he was still a member of the board and being paid, I would have insisted that he disclosed it.”

What report? Follow the links in here. Terrence Henry wrote for State Impact Texas 23 July, Fracking Company Paid Texas Professor Behind Water Contamination Study,

Earlier this year, a study led by Dr. Charles “Chip” Groat for the Energy Institute at the University of Texas at Austin made headlines for saying there was no link between fracking and groundwater contamination. (When we reported on the study in February, we noted that the study also found some serious issues around the safety and regulation of fracking that weren’t getting much press coverage.)

But according to a new report out today by the Public Accountablitiy Initiative (PAI), a nonprofit watchdog group, the conclusions in Groat’s report aren’t as clear cut as initially reported. And Groat himself did not disclose significant financial ties to the fracking industry.

Groat, a former Director of the U.S. Geological Survey and professor at the Jackson School of Geosciences at the University of Texas at Austin, also sits on the board of Plains Exploration and Production Company, a Houston-based company that conducts drilling and fracking in Texas and other parts of the country. According to the new report (and a review of the company’s financial reports by Bloomberg) Groat received more than $400,000 from the drilling company last year alone, more than double his salary at the University. And one of the shales examined in Groat’s fracking study is currently being drilled by the company, the report says.

Since 2007, Groat has received over $1.5 million in cash and stock awards from the company, and he currently holds over $1.6 million in company stock, according to the PAI report. (Update: we clarified with PAI, and that $1.6 million in stock comes from the stock awards over the years. PAI says Groat’s total compensation from the company is close to $2 million.)

And it gets worse from there: rough drafts published, unsubstantiated peer review claims, etc.

This isn’t an isolated case:

This isn’t the first time that academic studies of drilling have been called into question because of industry ties. In an earlier report on a State University of New York at Buffalo study on fracking’s environmental risks, Public Accountability Initiative found that it “suffered a number of critical shortcomings” and the “report’s authors had strong industry ties.”

And in today’s investigation from Bloomberg, they found other instances of industry influence and financial ties at Pennsylvania State University and University of Wyoming.

Do we want to trade air pollution by coal for groundwater pollution by fracking? When we have a better future already at hand through conservation and efficiency along with solar and wind power?

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4 of 5 incumbent GA PSC Commissioners accept massive utility campaign contributions

Could contributions produce influence? Neither of the incumbent Public Service Commissioners showed up for last night’s GPB debate, just as they didn’t show up for the previous weekend’s GIPL debate. Saturday the AJC examined the incumbents’ campaign finance and regulatory records, and let’s look a bit into how they’ve acted as regulators towards their biggest indirect contributors: Georgia Power.

Kristi E. Swartz wrote for the Augusta Chronicle or AP 21 July 2012, Donors to Georgia Public Service Commission members vested in decisions,

Four of Georgia’s utility regulators have accepted at least 70 percent of their campaign contributions from companies and people that could profit from the agency’s decisions, a review of five years of campaign finance records by The Atlanta Journal-Constitution revealed.

The fifth member of the state Public Service Commission, Tim Echols, campaigned on the promise that he wouldn’t take money from employees or lobbyists for businesses regulated by the agency.

Even so, nearly one in five dollars in Echols’ contributions came from people or companies whose business is affected by PSC decisions, the review found.

Together, the PSC commissioners took in nearly $750,000 in the last five years, records show. Two of them — Stan Wise and Chuck Eaton — are seeking re-election this year to their $116,452-a-year posts.

Wise and Eaton would be the two incumbents who can’t be bothered to show up for debates. Doesn’t make them look very responsive to the people, does it? Who do they respond to, then?

A review of major decisions that have come before the PSC in the past five years shows utilities have received much — but not all — of what they have asked for.

Georgia Power donors

In the past five years, for example, Georgia Power’s rates have risen 24 percent, although they dipped in June. The PSC must sign off on the company’s rate changes.

Current and former employees of Georgia Power, its parent Southern Co. and its law firm, Troutman Sanders, poured $52,650 into the campaign coffers of four of the sitting PSC members.

A Georgia Power spokeswoman argued that including Troutman Sanders and other company vendors in an analysis of spending “is false.” But critics say including them is critical to capturing the full influence of the utilities on the PSC.

Influence like this? Melissa Stiers wrote for GPB News 19 July 2011, PSC Nixes Vogtle Cost Check,

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I want you! to dump ALEC

This petition does not, unfortunately, list Southern Company.

But you can send SO a letter anyway!

For the past year, the Center for Media and Democracy has worked to expose the American Legislative Exchange Council (ALEC), through its ongoing www.ALECexposed.org investigation into ALEC’s operations, lobbying, and “model” bills voted on behind closed doors by corporate lobbyists and legislators voting as equals. ALEC’s extreme agenda has included templates to change our laws to make it harder for juries to hold vigilantes who kill people accountable, for American citizens to vote, for Congress to limit the distorting and corrupting influence of money in our elections, and numerous other bills that undermine the rights and opportunities of Americans. Please join us in reaching out to corporate members of ALEC to demand that they stop bankrolling ALEC and stop corrupting the democratic process. Tell them to dump ALEC!

Here’s Southern Company’s contact form.

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ALEC loses 8 more, including Wal-Mart

Even Wal-Mart ditches ALEC! What about the Southern Company?

ALEC Exposed is keeping a list of Corporations Which Have Cut Ties to ALEC, and since the ten we last counted, eight more have jumped the sinking lobbying ship: Blue Cross Blue Shield, YUM! Brands, Procter & Gamble, Kaplan, Scantron, Amazon, Medtronic, and Wal-Mart. That’s right, even Wal-Mart. Jason Easley wrote for Politicus USA yesterday, Wal-Mart Dumps ALEC and Outs Them as Un-American,

In a statement, Wal-Mart representative Maggie Sans wrote, “Previously, we expressed our concerns about ALEC’s decision to weigh in on issues that stray from its core mission ‘to advance the Jeffersonian principles of free markets…We feel that the divide between these activities and our purpose as a business has become too wide. To that end, we are suspending our membership in ALEC.”

Wal-Mart claimed that ALEC was no longer as interested in Jeffersonian free market principles as they were other partisan political issues. Two of those unnamed political issues are most certainly voter ID and stand your ground laws.

When even Wal-Mart complains that ALEC isn’t “free market” enough, Wal-Mart, which Continue reading →

ALEC, bills to ditch renewable energy, and the Southern Company

Got caught promoting laws that encourage people to kill people? Double down on laws to kill people through pollution! That’s what ALEC is doing. And look who’s apparently a member of ALEC: the Southern Company, parent of Georgia Power, and proprieter of several of the largest and dirtiest coal plants in the country.

Brian Merchant wrote for Treehugger Tuesday, Two ALEC Campaigns Exposed: One Kills Renewables, One Boosts Fracking,

After major corporations like Pepsi, Kraft, Proctor & Gamble, and Coke all ditched the rightwing group, ALEC announced that it would Plant Scherer abandon its drive to enact gun and voter ID laws. The group’s decision came after a couple high profile campaigns were launched decrying ALEC’s involvement in passing the ‘stand your ground’ laws.

But the group is actually stepping up its efforts in other arenas, as I noted last week. And two new reports, one from ProPublica, the other from DeSmogBlog, outline its new aims: dismantle legislation that incentivizes renewable energy generation, and preserve loopholes that allow natural gas companies to keep the chemical cocktails in their fracking fluids secret from the public.

This is the same ALEC that promotes laws like Georgia’s HB 87 that lock up more people to benefit private prison companies like CCA, which wanted to build a private prison on Lowndes County, Georgia. Traficking in human beings is not too sordid for ALEC, so poisoning people through polution doesn’t seem surprising.

Hm, let’s look at the corporate membership of ALEC, as collected by Sourcewatch’s ALEC Exposed. Why there’s The Southern Company, parent of Georgia Power! I’m frankly a little surprised Continue reading →