Tag Archives: Nuclear

Nuclear’s “bet-the-farm” risk —Moody’s

Wonder why Southern Company couldn’t get private financing for its new nukes at Plant Vogtle? Because back in June 2009 bond-rater Moody’s said this:

But from a credit perspective, the risks of building new nuclear generation are hard to ignore, entailing significantly higher business and operating risk profiles, with construction risk, huge capital costs, and continual shifts in national energy policy.

In case that wasn’t clear enough, they spelled it out further.

Nuclear’s “bet-the-farm” risk

The NRC says about 14 companies to date have submitted COL applications, proposing numerous new nuclear reactors for power generation. The first of these COL’s is expected to be approved beginning in mid-2011. Many of the COL license applications include partners, but the next table lists the primary holding company entity behind each project, and our view of the activity level associated with the endeavor.

From a credit perspective, companies that pursue new nuclear generation will take on a higher business and operating risk profile, pressuring credit ratings over the intermediate- to long-term.

Moody’s wraps up with some reassuring words for financiers, but maybe not so reassuring to we the taxpayers:

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New nukes increasingly bad business bet for Southern Company and Georgia Power

Harvey Wasserman wrote for HuffPost 9 April 2012, America’s 2 New Nukes Are on the Brink of Death,

The only two U.S. reactor projects now technically under construction are on the brink of death for financial reasons.

If they go under, there will almost certainly be no new reactors built here.

The much mythologized “nuclear renaissance” will be officially buried, and the U.S. can take a definitive leap toward a green-powered future that will actually work and that won’t threaten the continent with radioactive contamination.

Those are the stakes. And in that high-stakes poker game, it seems Southern Company is doing a little bluffing.

In Southern Company’s (SO) Q1 2012 Earnings Call 25 April 2012, its CEO Thomas Fanning revealed another little flaw in the project:

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Southern Company CEO got 62% raise in 2011

What did Southern Company (SO) do to justify a 62% raise for its CEO last year? Could it be lots of special financing for the proposed new nukes at Plant Vogtle on the Savannah River?

Bill Murphy wrote for citybizlist Atlanta 16 April 2012, The Southern Company CEO Thomas Fanning Got 62% Raise in 2011 – cbl

The Southern Company (NYSE: SO) Chairman, President and CEO Thomas Fanning got a 62 percent jump to $9.75 million last year, according to an SEC filing. He got $6.02 million in 2010.

Fanning, who has led the Atlanta-based energy company since December 2010, received a base annual salary of $1.06 million, shares worth $2.25 million, stock options worth $1.50 million, $2.46 million in non-equity incentive and $2.42 million representing a change in pension value and nonqualified deferred compensation.

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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 →

Southern Company wants even more special nuke loan terms

Southern Company wants even more special loan guarantee terms for its new Plant Vogtle nukes. When that or CWIP gets revoked, maybe Southern Company will see that solar is a lot less trouble, and more profitable.

The license authorized by the NRC 9 February 2012 for the new Plant Vogtle nukes is the first one in thirty years. Harvey Wasserman wrote for CounterPunch 18 April 2012, The Big Liability,

It’s about a proposed $8.33 billion nuke power loan guarantee package for two reactors being built at Georgia’s Vogtle. Obama anointed it last year for the Southern Company, parent to Georgia Power. Two other reactors sporadically operate there. Southern just ravaged the new construction side of the site, stripping virtually all vegetation.

It’s also stripped Georgia ratepayers of ever-more millions of dollars, soon to become billions. This project is in the Peach State for its law forcing the public to pay for reactor construction in advance.

Look on your Georgia Power bill for Nuclear Construction Cost Recovery Rider, aka Construction Work in Progress (CWIP). It’s probably about 3% of your bill, for power you may never receive.

If you get your electricity from an EMC instead, remember Georgia’s Electric Member Corporations already participate in the existing Plant Vogtle nukes, so you’ll be on the hook one way or another for the new nukes.

When the project fails, or the reactors melt, the public still must pay.

And even before then, Georgia Power customers get to pay for cost overruns. Not to worry; last time nukes were built at Plant Vogtle, they only ran over budget by a factor of seven.

Southern Company’s existing Plant Vogtle reactors had an unexpected shutdown last year days after NRC said they were fine. And Southern Company says Continue reading →

Concrete flaws at Vogtle delay construction, require modified nuke permit

Concrete sinking into the dirt less than two months after licensing? One license amendment already requested and dozens more to come? Does this give you confidence in Southern Company's ability to build a safe nuclear plant without huge cost overruns charged to you the Georgia Power customer or you the taxpayer?

In mid-March the nuclear industry bragged about

Progress continues at the construction site of Plant Vogtle units 3 and 4 — the country's newest reactors and the first to be licensed since 1978.

We discover that at the end of March Southern Company had to ask NRC for a licensing change due to construction problems. Vogtle Nuclear Construction Faces “Additional Delay” Based on Miscalculations in Foundation Concrete — News Release from NC WARN and Alliance for Nuclear Accountability—April 9th, 2012, Continue reading →

A cheery possibility from Japan

Takao Yamada wrote for Mainichi Japan 2 April 2012, In light of further nuclear risks, economic growth should not be priority,

A report released in February by the Independent Investigation Commission on the Fukushima Daiichi Nuclear Accident stated that the storage pool of the plant’s No. 4 reactor has clearly been shown to be “the weakest link” in the parallel, chain-reaction crises of the nuclear disaster. The worse-case scenario drawn up by the government includes not only the collapse of the No. 4 reactor pool, but the disintegration of spent fuel rods from all the plant’s other reactors. If this were to happen, residents in the Tokyo metropolitan area would be forced to evacuate.

Fukushima is about 200 miles from Tokyo. Plant Hatch at Baxley, which has the same reactor design as at Fukushima, is about the same distance from Atlanta and Charleston, closer to Tallahassee and Jacksonville, and much closer to many of us in south Georgia.

The article concludes:

We cannot accept the absurd condescension of those who fear the worse-case scenario, labeling them as “overreacting.” We have no time to humor the senseless thinking that instead, those who downplay the risks for the sake of economic growth are “realistic.”

So, what do you get in a solar spill? Sunshine. What do you get when a wind turbine breaks? Maybe some local damage. What do you get when a nuclear plant fails? Oh….

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Austin Energy changed from anti-solar to pro-solar in one year

At the end of 2003, Austin Energy (AE) suddenly went from very anti-solar to very pro-solar. Formerly coal-smoking Cobb EMC is doing it right now. If AE and Cobb EMC can do it, so can Georgia Power: change in one year from opposed to aggressively promoting solar power.

Mike Clark-Madison wrote for the Austin Chronicle 5 December 2003, AE drops a solar bomb,

In a near-complete turnaround from its public position just a week ago, Austin Energy has announced plans to adopt specific, highly ambitious, and undeniably expensive goals for adding solar energy to the Austin electric and economic mix. At a town hall meeting held Tuesday night to discuss the AE plan — also the subject of a public hearing at City Council today (Thursday) — AE’s Roger Duncan announced the utility’s commitment to develop 15 megawatts of solar generating capacity by 2007, escalating to 100 megawatts by 2020. The AE plan also calls for a study of the “comprehensive value” of solar power — putting a dollar amount on the economic and environmental benefits to Austin, in addition to the cost of solar-generated electricity itself. This would determine the price Austin Energy would pay for electricity generated by privately owned solar installations, just as AE now buys wind power from third parties.

Georgians tend to think Georgia Power’s foot-dragging and disinformation campaign about solar is so entrenched it will never change. But I’ve seen it happen, and it happened despite people’s expectations set by the power utility, and it happened very quickly and very big:

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East coast wind energy basket

Claudia Collier went to a Bureau of Ocean Energy Management public meeting yesterday at the Coastal Georgia Center in Savannah, and said:

“I suggest you designate the East Coast as the wind energy basket.”
According to Orlando Montoya with GBP yesterday, Offshore Oil Proposal Fuels Debate, she added:
“We have at least five areas out there on the shallow shelf that have designated as very promising for wind. And I just believe that once the East Coast is opened up to oil and gas, they will just take over and wind will go by the wayside.”

Oil exploration, like nuclear, is a distraction from getting on with renewable wind, wave, and solar energy independence. Let’s do the study for energy reliability in Georgia including using the large offshore wind opportunity. Remember the BP Gulf oil spill! What do you get with a wind spill? Um, wind?

The first Claudia Collier quote is by Mary Landers in SavannahNow today, Off-shore Savannah drilling talk draws support, questions. Mary Landers concluded:

The comment period on the document remains open until May 30. A decision on allowing exploration is expected by the end of the year.
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We’re just ripe for solar power –Cobb EMC

We already saw that private investment is funding a 100 acre 10 MW solar farm with Cobb EMC as a customer. What does that mean for Cobb EMC’s direction? How big is Cobb EMC, anyway? And what does all this mean for Georgia Power, and for solar power in Georgia and all the jobs it can produce? What does it mean for everyone running for the Georgia legislature?

Chip Nelson, CEO of Cobb EMCKristi E. Swartz wrote for the AJC 16 April 2012, Solar project could be a catalyst for more if policies allow it,

“I always thought solar power was something further out for Georgia. We just weren’t in the right time,” said Chip Nelson, chief executive officer of Cobb EMC. “The way things have been moving in the utility industry, particularly the last two or three years, I find that we’re just ripe for it.”

Ripe indeed! Coal is dead. Nuclear is going down. 30 MW solar farm near Austin Solar will eat the lunch of utilities that don’t start generating it. It’s time for utilities to get out in front and generate their own solar power. Austin Energy continues to show the way in Texas with a 30 MW solar farm. Now Cobb EMC can do the same for Georgia.

Nelson isn’t some fresh outsider: he’s a Cobb EMC lifer. According to Patty Rasmussen in Georgia Trend February 2012, Power Players: Taking Over At Cobb EMC,

Nelson worked for Cobb EMC for 37 years, most recently serving as chief operations officer. He stepped in as interim CEO in February 2010 and decided to apply for the full-time position.

And Cobb EMC is not small. According to Kim Isaza in MDJonline.com 20 July 2011 New Cobb EMC chief Nelson ready to ‘turn page’ on past costly litigation, divisiveness,

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