Tag Archives: CWIP

Renewable energy much needed in Georgia —John S. Quarterman

My op-ed in the VDT today; I’ve added links, plus some more after the op-ed.

Finally! Kewaunee, Calvert Cliffs, and now Crystal River permanently closing say it’s time for Georgia to stop wasting money on Southern Company’s already over-budget and increasingly-late nukes and get on with solar power and wind off the coast: for jobs, for energy independence, and for clean air and plenty of clean water.

February 2013:
Duke Energy is closing the Crystal River nuclear reactor (Tampa Bay Times, 6 Feb 2013), 160 miles south of us, because nobody wants to pay to fix it: between “$1.5 billion and $3.4 billion, plus what it costs to buy power to replace what Crystal River would have produced while it is being repaired” [Charlotte Business Journal, 11 Jan 2013].
November 2012:
NRC terminated Maryland’s Calvert Cliffs 3 (NRC 1 Nov 2012) after Constellation Energy dropped out because the cost “is too high and creates too much risk for Constellation” [Bloomberg 10 Oct 2010].
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HB 267 Financing costs; construction of nuclear generating plant

As promised, a bipartisan bill was filed Thursday to stop Georgia Power from charging for nuclear cost overruns on Plant Vogtle; this could free up some financing for Georgia to move ahead on solar and wind power.

2013-2014 Regular Session – HB 267 Financing costs; construction of nuclear generating plant; change calculation that utility can recover from customers,

A BILL to be entitled an Act to amend Code Section 46-2-25 of the Official Code of Georgia Annotated, relating to the procedure for changing any rate, charge, classification, or service and the recovery of financing costs, so as to change the calculation used under certain circumstances to determine the costs of financing associated with the construction of a nuclear generating plant that a utility may recover from its customers; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

The bill would add this text to Georgia Code:

…provided, however, that in the event the amounts recorded in the utility’s construction work in progress accounts plus the amount of all financing costs accrued on any construction work in progress accounts exceeds the costs approved by the commission in the original certificate of the nuclear generating plant granted under Code Section 46-3A-5, the cost of equity portion of the financing costs shall be calculated using a rate no higher than the utility’s actual cost of debt.

Let’s see what Georgia Power does to fight this one. So far, it’s Continue reading →

Bill against Vogtle nuke overruns to be filed Thursday

It’s about time. -jsq

Jeanne Bonner wrote for GPB today Vogtle Cost Overruns Targeted,

A state lawmaker wants to prevent Georgia Power from reaping profits on cost overruns at Plant Vogtle. Rep. Jeff Chapman will file a bill Thursday that would bar the utility from making money on anything other than the certified cost of the nuclear power plant it’s building in eastern Georgia.

Chapman said before writing the bill, he sent a letter to Georgia Power, asking the company to forego the profits.

He said he hasn’t had a response.

Under a 2009 bill, the company can collect in advance the financing costs for the two reactors it’s building near Augusta.

Chapman, a Brunswick Republican, says he supports the project. But

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Carbon bubble? Solar and wind erode coal, gas, and biomass credit quality —Moody’s

In Europe it’s already happening: solar and wind are causing bond-rater Moody’s to warn of downgrades of energy companies that depend on heat from burning coal, gas, or biomass. Moody’s earlier even warned the Bank of England of a potential carbon bubble developing. If combustion energy plants are affected like this, the credit effects will be even bigger on even-more-expensive nuclear plants, which Moody’s called a bet-the-farm risk way back in 2009.

James Murray wrote for businessGreen 6 Nov 2012, Moody’s: Renewables boom poses credit risk for coal and gas power plants: Credit ratings agency warns increases in renewable power have had ‘a profound negative impact’ on the competitiveness of thermal generation companies,

“Large increases in renewables have had a profound negative impact on power prices and the competitiveness of thermal generation companies in Europe,” said Scott Phillips, an assistant vice president and analyst at Moody’s Infrastructure Finance Group, in a statement.

“What were once considered stable companies have seen their business models severely disrupted and we expect steadily rising levels of renewable energy output to further affect European utilities’ creditworthiness.”

And not just rising, rising increasingly Continue reading →

15 month delay for new Plant Vogtle nukes —state inspector at PSC

Southern Company's new nukes are delayed at least fifteen months, at least a billion over budget and rising, and not organized to meet safety filing requirements, yet the Georgia PSC yesterday let SO pass the buck to contractors and Georgia Power continue charging customers for that boondoggle, despite 40 to 1 opposition from attendees.

Ellen Reinhardt wrote for GPB News yesterday, Plant Vogtle Construction Costs Rising,

An independent auditor told utility regulators Plant Vogtle construction will be delayed at least 15 months and go millions of dollars over budget.

Nuclear engineer William Jacobs said poor construction material, contractor mistakes and oversight delays will mean the Unit 3 reactor won't be ready until July of 2017.

That's 15 months later than planned.

Surprise! From $0.66 to $8.87 billion: original Plant Vogtle nuclear costs Who could have expected that, given that back in the 1970s and 1980s costs blew up 26 times the original estimate. Back then SO complained about paperwork after Three Mile Island. They're trying that same excuse now, but even a former Commissioner-turned-lobbyist is incredulous, as Kristi Swartz reported for the AJC yesterday, Monitor: Paperwork problems a drag on Vogtle schedule,

“It's taken eight months to handle paperwork deficiencies?” asked Bobby Baker, a former PSC commissioner who now represents Resource Supply Management, an energy consultant that works with large commercial, institutional and industrial electric customers.

A current Commissioner was almost as incredulous:

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Original nuclear Plant Vogtle cost overruns

Why should we expect Southern Company to be any better at controlling costs now than back in the 1970s and 1980s when its original nukes on the Savannah River went massively over budget? Massively as in 26 times as much per unit as originally projected.

Kristi Swartz wrote for the AJC 30 Jan 2012, A financial look at Plant Vogtle nuclear projects,

From $0.66 to $8.87 billion: original Plant Vogtle nuclear costs When the two original nuclear units at Plant Vogtle were planned, the total cost estimate was $660 million.

Yet, as Jon Gertner reported for NYTimes 16 July 2006,

The plant took almost 15 years to move from blueprints to being operational. And by the time it began producing electricity in the late 1980’s, its total cost, $8.87 billion, was so far overbudget that Vogtle became yet another notorious example of the evils of nuclear energy….

The grand plan was to have four reactors. Instead, it was scaled back to two, Vogtle Unit 1 (finished in 1987) and Vogtle Unit 2 (1989).

That’s right, 4 nuclear units were planned for $660,000,000 fifteen (15) years later only 2 units were built, for $8,870,000,000. That’s more than $8 billion in cost overruns, or more than 13 times the original cost estimate. So per unit, that’s more than 26 times the original estimate, or more than $4 billion per unit.

Swartz provided a handy table of cost estimates by year:

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GaSU wins at GA PSC, but will GaSU help all of us win in the legislature?

GA PSC Stan Wise’s 2009 nuclear CWIP lobbying points eerily matched Southern Company’s, but suddenly he’s got separation-of-powers religion about Georgia Solar Utilities (GaSU). The PSC recommended GaSU’s utility bid anyway. When the legislature takes that up in a month or so, will GaSU CEO Robert Green, unlike SO or Georgia Power or Stan Wise, help the rest of us little people fix the 1973 Territoriality law so we can sell our solar electricity on a free market?

Dave Williams wrote for the Atlanta Business Chronicle yesterday, Georgia Public Service Commission moves ahead on solar energy,

Georgia Power logo The Georgia Public Service Commission approved a plan by Georgia Power Co. Tuesday to acquire an additional 210 megawatts of solar generating capacity, more than tripling its investment in solar energy.

GA PSC PR about 20 November 2012 decisions But a sharply divided PSC also gave a potential competitor to Georgia Power its blessing to appeal to the General Assembly to amend a 39-year-old law that gives the Atlanta-based utility the exclusive right to continue serving existing customers.

Under Georgia Power’s Advanced Solar Initiative, the company will buy solar power produced by both large “utility-scale” solar farms and from smaller projects operated by residential and commercial property owners.

Right, that’s actually only 10 Megawatts from “smaller projects”, maintaining Georgia Power’s monopoly while throwing throwing a bone to the rest of us.

While the PSC supported Georgia Power’s plan unanimously, a subsequent motion by McDonald encouraging other solar utilities interested in serving Georgia to pursue their plans with the legislature passed by the narrow margin of 3-2.

Georgia Solar Utilities Inc., a company launched in Macon, Ga., earlier this year, filed an application with the PSC in September for authority to generate solar energy in Georgia on a utility scale.

The two Nay votes were from the two recently-reelected PSC members, apparently now thoroughly in the pocket of the incumbent utilities. Here’s one of them now:

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Solar up 50% over last year in Germany

July in Germany wasn’t a fluke: solar PV electricity production in Germany is up 50% over last year. Maybe we hould consider a Feed-in Tariffs (FIT) in Georgia like that in Germany. Unlike the Construction Work in Progress (CWIP) charge on Georgia Power bills for nuclear power people won’t get for years, if ever, FIT charges only apply after solar power is flowing.

Bloomberg Businessweek via AP 5 November 2012, German solar power production up 50 pct on year,

The German utilities’ industry association BDEW said Monday the solar power output rose to 25,000 gigawatt hours in the January to September period, from 16,500 gigawatt hours a year earlier.

It says solar power’s share in the country’s electricity production rose to 6.1 percent from 4.1 percent. Wind power gained slightly to 8.6 percent from 8.0 percent. Biomass plants accounted for almost 6 percent.

It says all renewable energies combined accounted for about 26 percent of electricity production over the first nine months.

Germany decided last year to phase out nuclear power by 2022 and replace it with renewable energies.

If you’re tired of Georgia Power and its parent Southern Company pouring your customer and tax dollars down that nuclear pit near the Savannah River, or if you’d just rather have solar or wind power, you can send in your CWIP charge as a separate check, with a note on it. Even if you’re not a Georgia Power customer, you can contact them or Southern Company (or the GA PSC or the legislature) about this.

-jsq

Georgia Power raising rates

Georgia Power is raising rates in January, despite its recent announcement that it would lower rates because of lower fuel bills. Why raising? Mostly the new nukes and for a new natural gas plant. And 16% of the rise is for energy efficiency. Does that seem like the right proportion to you?

Kristi Swartz wrote for the AJC 1 Nov 2012, Georgia Power bills to increase,

The average Georgia Power bill will increase about 44 cents a month starting in January, not decrease as many might have expected when the company announced last month its fuel costs had dropped.

The utility, which serves 2.4 million customers, notified state regulators in October that it would be applying for a residential rate reduction because the amount it pays for fuel has fallen 7 percent, saving $122 million. The utility cannot profit from lower fuel costs and must pass those savings on to customers.

So why are customer rates going up?

About $1.05 of the typical residential bill will go toward paying for a new natural gas unit at Plant McDonough-Atkinson in Smyrna. That increase already was approved as part of a three-tiered rate hike set in 2010.

Yep, that’s that set-in-2010 and keep-rising-’till-2013 natural gas rate hike that Georgia Power got away with while complaining about any potential solar subsidies. The one AJC complained would be “on autopilot”: Continue reading →

Softbank’s Son to install solar in Japan: watch out, Georgia Power!

The same Masayoshi Son who shook up Japan’s Internet market and is about to do the same in the U.S. is moving to modify Japan’s power market from nuclear to solar. Watch out, Georgia Power and Southern Company! If you don’t get a move on, Son-san will eat your lunch, too.

Mariko Yasu wrote for Bloomberg Businessweek 23 June 2011, Softbank’s CEO Wants a Solar-Powered Japan,

Masayoshi Son Billionaire Masayoshi Son made a fortune taking on Japan’s phone monopoly. Now he aims to shake up its power utilities after the worst nuclear crisis in 25 years. The 53-year-old chief executive officer of Softbank says he will build solar farms to generate electricity, with support from at least 33 of Japan’s 47 prefectures. He’s asking for access to transmission networks owned by the 10 regional utilities and an agreement that they buy his electricity. No other company has secured unlimited access to the those transmission networks. The utilities would not comment. Japan’s main business organization, the Keidanren, called for “careful analysis” before any drastic change in the power system took place.

If Japan ever felt ready to back Son’s ambitious plan, this is the moment. Radiation has spread across at least 600 square kilometers (230 square miles) in the northeast since the Mar. 11 earthquake and tsunami led to meltdowns at the Fukushima Dai-Ichi nuclear plant. Outgoing Prime Minister Naoto Kan said in May he will rethink a plan to increase atomic power to 50 percent of the nation’s energy output from 30 percent. Renewable energy already accounts for 10 percent, according to Japan’s Agency for Natural Resources and Energy. Son wants to see that tripled by 2020. “The question is how this nation is going to survive after cutting nuclear power,” he said at a government panel meeting on June 12.

Complacent Georgia Power and SO, you maybe don’t think he can do it? NTT probably thought that, too:

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