Tag Archives: Southern Company

Google shows the way on offshore wind

Zachary Shahan wrote for CleanTechnica yesterday, Google-backed Offshore Wind Power Superhighway Moves Forward,

The Department of the Interior stated on Monday that there was “no overlapping competitive interest” for the areas where the $5-billion project would be constructed. This decision leads us to the next step in the process — environmental review of the Atlantic Wind Connection line.

The article notes that environmental review could take 18-24 months, with a projected power online date of end of 2017. Southern Company projects Vogtle Unit 3 online in 2016 and Unit 3 in 2017. And that’s before the cost overruns that have already started. I’m guessing Google will have its Atlantic wind project up and running before Southern Company has any new nukes online, if they’re ever online.

And remember, the Atlantic Wind Connection is privately funded:

Other than Google, companies funding the project include Good Energies and Japan’s Marubeni Corp.

The cost is about $5 billion for 6,000 MW of wind energy generation.

Meanwhile, Southern Company has already overrun its nuke cost estimate by almost $1 billion within a few weeks of NRC go-ahead. It won’t take long at that rate for the cost overruns to exceed $5 billion. That’s on top of the perhaps $8.3 billion base cost. That’s for two 1,100 MW reactors, for 2,200 MW total.

What if Southern Company and private investors quit wasting resources on nukes and funded a Georgia Bight Wind Connection instead? After all, Georgia’s offshore waters are part of the East coast wind energy basket.

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How Much Wind and Solar Capacity Would a Billion Dollars Buy?

Those cost overruns so far on the new nukes? How much solar and wind could that money buy?

John Hanger wrote on his Facts of the Day today, $913 Million Construction Overrun Hits Georgia New Nukes: How Much Gas, Wind, Solar Capacity Would That Buy?

Comparing the Vogtle initial $913 million cost overrun to the capital costs of gas, wind, and solar plants show just how big these cost overruns can be. The Vogtle $913 million cost overrun by itself could have paid for approximately 1,000 megawatts of natural gas generation; 450 megawatts of wind power; and 330 megawatts of solar power.

Don’t forget that’s just the first cost overruns on those nukes. When the current Plant Vogtle nukes were built, there were supposed to be four at a cost of $660 million; only two were built, at a cost of $8.87 billion. That’s a cost overrun of 1300%. How much solar and wind could $8 billion buy?

Moreover, gas, wind, and solar generation could be up and running in 3-years or less from the first day to the last day of development, as opposed to the 10 years or more needed to build a nuclear plant.

Austin Energy’s new 30 MW solar farm, for example, approved beginning of 2009, opened end of 2011, and cost less than originally projected.

Oh, and solar doesn’t leak radioactive tritium like Plant Hatch and won’t get shut down two days after an NRC clean bill of health like Plant Vogtle.

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Cost overruns already starting for Georgia Power’s new nukes

Remember how Georgia Power customers get to pay for cost overruns on the new nukes? Well, the overruns have already started.

JoAnn Merrigan wrote for WSAV 15 May 2012, Environmental Groups: Plant Vogtle Reactors Almost One Billion Over Budget,

A group of nine national environmental groups says that the two new nuclear reactors being built at Plant Vogtle (near Waynesboro in eastern Georgia) are over budget by up to $1 billion dollars. The opponents say Georgia Power’s share of the cost overruns is currently $400 million and that may cost ratepayers as well as taxpayers who are guranteeing loans in the billions of dollars.

The nine environmental groups, Friends of the Earth, Southern Alliance for Clean Energy, Blue Ridge Environmental Defense League, Center for a Sustainable Coast, Citizens Allied for Safe Energy, Georgia Women’s Action for New Directions, NC WARN, Nuclear Information and Resource Service, and Nuclear Watch South, are also suing:

Continue reading →

If Southern Company’s nukes are a good deal, why so many insider stock sales?

If the Southern Company’s slick nuclear financing deal and its ongoing operation of three of the country’s dirtiest coal plants (two of them in Georgia) is such a good deal, why are so many insiders selling so much stock?

Maybe SO CEO Thomas A. Fanning needed that $12.4 million he got back in January by selling 275,617 shares at $45.0693 per share for a new yacht, or a new wing on his house, or something. A brief scan of nearby energy companies (Duke and Progress) indicates it’s not unusual for an energy company CEO to sell shares, although mostly not for this much dollar amount. $12.4 million is more than twice Fanning’s 2010 salary of $6.02 million, and well more than his 62% raised 2011 salary of $9.75 million that Georgia Power customers get to help pay for through Construction Work in Progress (CWIP) charges for the new nukes at Plant Vogtle that won’t be built for years, if ever.

But what’s with two SO subsidiary company CEOs, Mark A. Crosswhite, President and CEO of Gulf Power ( #206 on the Forbes Global 2000 in 2010) and Edward Day VI, President and CEO of Mississippi Power Company ( former engineering group supervisor at the Hatch Nuclear Project) selling a bunch of stock in April? Also there have been only a couple of puny little purchases, each of less than $30,000, in the past year. Why so much selling and so little buying by insiders?

Maybe new nukes are an increasingly bad business risk for Southern Company and Georgia Power. Perhaps some economic expert can help with this question; how about Moody’s? Maybe Georgia Power customers and Georgia and U.S. taxpayers and voters have an opinion?

I wonder what will happen to SO’s insider trading patterns when SO’s illusion of certainty of profit from nuclear and coal eventually becomes obvious even to their board and shareholders as actually a big risk, and when SO realizes Cobb EMC made the right choice for profit by ditching coal plant plans and building solar plants instead; when SO finally suddenly switches to solar like Cobb EMC and Austin Energy already did. Will insiders decide SO’s stock has become a good buy when SO builds solar and wind plants?

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Fixing the illusion of certainty in Georgia Power’s decision-making

Why is it so hard to get a company like Georgia Power or The Southern Company to get on with solar and wind power for clean energy, for national energy independence, and, most importantly to such corporations, for their own profit? Why instead do they keep investing in coal and natural gas and wasting our tax and customer dollars on nuclear financial boondoggles? Why did Cobb EMC back new coal plants until they had their nose rubbed in national shame about corruption and do nothing about solar until their shareholders revolted and changed a majority of their board? We don’t even need to wait for that forensic audit the new Cobb EMC board wants to get the big picture. Such companies consider what they’re used to to be low risk, and anything new to be risky. Why are they so stodgy, and how do we change that?

These companies have many decades of experience with coal and natural gas, so they consider them less financially risky. (Details like neighbors dying disproportionately from cancer cost a little bit to buy up property, but that’s nothing compared to readily predictable profits.) Even nuclear such companies consider not risky to them, since they’ve got the federal government and their own customers guaranteeing all the financial risk through Construction Work in Progress charges on their bills for power they’re not even receiving from the new nukes and agreement from Georgia PSC that cost overruns like those caused by concrete sinking into the dirt can be passed on to the customers.

Neal Stephenson wrote for World Policy Journal September 2011, Innovation Starvation,

The illusion of eliminating uncertainty from corporate decision-making is not merely a question of management style or personal preference. In the legal environment that has developed around publicly traded corporations, managers are strongly discouraged from shouldering any risks that they know about—or, in the opinion of some future jury, should have known about—even if they have a hunch that the gamble might pay off in the long run. There is no such thing as “long run” in industries driven by the next quarterly report. The possibility of some innovation making money is just that—a mere possibility that will not have time to materialize before the subpoenas from minority shareholder lawsuits begin to roll in.

But if the old ways turn out to be suddenly risky, change can come. Funny how Cobb EMC changed its tune after subpeonas started raining down for its former CEO Dwight Brown. Sure, he got off on a technicality, but it turns out Cobb EMC shareholders didn’t like Continue reading →

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 →

Separate CWIP payments to Georgia Power —WACE call for action

We don’t have to wait for the Georgia legislature to ban Construction Work in Progress (CWIP) for Georgia Power’s new nukes at Plant Vogtle. WACE has put out a clever call for action about CWIP, Go Solar, Not Nuclear!

Here’s an excerpt:

  • Use two checks each time you pay your bill. One check covers the amount you are forced to pay for “Nuclear Construction Cost Recovery” (write “for solar construction” in the memo line). The other check covers the remaining amount of your actual electricity costs.
  • Include a note in the letter with your checks voicing your opposition to nuclear power and ask Georgia Power to invest your funds in solar energy instead. This note could read:
    • I oppose nuclear power because of its dangers to our health and our environment. (See the nuclear accidents at Fukushima, Chernobyl, and Three Mile Island)
    • I oppose the construction surcharge for nuclear power plants because they are too expensive and waste billions of our tax dollars. (Plant Vogtle was originally estimated to cost $660 million. Eventually, only 2 of its proposed 4 reactors were built, costing more than $8 billion, and resulting in huge rate hikes for Georgia residents.)
    • I ask that GA Power invest my money and any collected surcharges in solar instead.
The PDF of the call includes these addresses:
Tim Echols, Chairman
Georgia Public Service Commission
244 Washington Street SW
Atlanta, GA 30334
1-800-282-5813 		W. Paul Bowers, CEO
Georgia Power Company
241 Ralph McGill Boulevard NE
Atlanta, GA 30308
1-888-660-5890
And don’t forget Georgia Power’s parent company The Southern Company’s CEO, Thomas Fanning, said a year ago he’s “bullish” on solar. Let’s see some solar action from The Southern Company and Georgia Power!

Here are some more contacts.

You don’t even have to be a Georgia Power customer to write to these people. Most of them are elected or appointed officials who are supposed to represent you, the taxpayers.

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Georgia Power peddling old disinformation about solar power

On the same day as SB 401 revived as SB 459 gets a hearing in a better committee, Georgia Power trots out the same old tired disinformation it’s been peddling for years. As if we didn’t already know that almost all solar installations in Georgia are installed by certified solar installers. Or that pretty much every inverter these days comes with built-in automatic cutoff if the grid goes down to which installers add air-gap cutoff knife switches plus breakers. And as if Georgia Power didn’t know it and EMCs could charge a percentage on electricity arbitraged across their networks, which gapower could use to finance any needed grid improvements, while retaining a hefty profit for doing not much of anything else. Meanwhile, those of us who chose to participate in solar electricity arbitrage would get lower rates for customers. We do know all that, but maybe your state senator doesn’t, so maybe you should call your senator today and tell them you want to be able to buy and sell solar power without having to get it from the utility monopoly.

Greg Roberts, Vice President of Pricing and Planning for Georgia Power in Atlanta, wrote for the Savannah Morning News today, The solar sleight of hand. I’ll only quote part of his concluding paragraph.

Georgia Power is involved in many efforts to expand the use solar energy
Usually dragged along behind reluctantly, Continue reading →

Stop Georgia Power from stopping you from affording solar

Why can’t you do this?
Say you own a coffee shop. You’d like to install solar panels on your roof but can’t afford them. A company offers to install and lease you the equipment, provided you sign a long-term contract. The company will sell you energy at a cheaper rate than you already pay Georgia Power. No longer would you be so susceptible to spikes in electricity prices. Nor would your money be helping to support burning coal or nuclear power.
Georgia law says you can’t do that.

That’s why SB 401 is in the Georgia Senate. It’s

a common-sense measure that would put people to work, create a new sector in Georgia’s economy, and promote clean energy. In addition, the legislation would help shield people from increases in electricity rates, which, according to the U.S. Department of Energy, have risen nearly 50 percent over the last seven years.
Why would Georgia Power not like that? Continue reading →