Tag Archives: Wind

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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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 →

Coal ash at Plant Scherer considered harmful for your health

Penny-wise, pound foolish, that's coal and coal ash, we're all discovering.

S. Heather Duncan wrote for the Macon Telegraph 14 April 2012, Plant Scherer ash pond worries neighbors as Georgia Power buys, levels homes,

The home among the trees was supposed to be Mark Goolsby's inheritance. His 78-year-old mother now lives in the large, white, wood farmhouse that his family built before the Civil War.

But Goolsby says he'll never live there now.

That's because across the street and through those trees is one of the largest coal ash ponds in the country. It belongs to Plant Scherer, a coal-fired plant that came to the neighborhood considerably later than the Goolsby family. In the mid-1970s, Goolsby said, “when (Georgia Power) bought 350 acres from my dad, they told him we'd never know they were there.”

Those acres are now part of an unlined pond where Georgia Power deposits about 1,000 pounds of toxic coal ash a day. Neither federal nor Georgia rules require groundwater monitoring around the pond. The federal Toxic Release Inventory shows that in 2010 alone, the pond received ash containing thousands of pounds of heavy metals and radioactive compounds including arsenic, vanadium, and chromium.

The U.S. Environmental Protection Agency estimates that up to 1 in 50 residents nationally who live near ash ponds could get cancer from the arsenic leaking into wells. The EPA also predicts that unlined ash ponds can increase other health risks, such as damage to the liver, kidneys and central nervous system, from contaminants such as lead.

A massive 2008 spill from a Tennessee coal ash pond led to greater scrutiny of the dams that hold these ponds in place, and the EPA promised new rules for storing coal ash. The process led to broader awareness of a more long-term health threat: groundwater contamination from the ponds.

So what's Georgia Power's solution?

Monroe County property records show Georgia Power has spent about $1.1 million buying property near Plant Scherer between 2008 and the end of 2010. But the true number may be higher.

They're going to have to keep doing that until they buy up a lot more property, I predict.

Wouldn't it be cheaper for the future bottom line of Georgia Power and its parent the Southern Company to invest in solar and wind power?

-jsq

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 →

Veterans for clean energy: Operation Free

Tired of expensive gas? Tired of expensive wars? Let’s get off of oil and onto clean renewable energy! That’s the message from Operation Free, a campaign of the Truman Project.

Mission: Secure America with Clean Energy.

Iraq War veteran Terron Sims said clean energy and veterans is a part of the “modern form of American exceptionalism.”

Here’s the video:

Pullquote:

“In Iraq… the lines would stretch up to ten miles long under the hot sun, under constant risk of attack by extremists. I realized then just how vulnerable it makes any country to be dependent on oil, especially the United States, which uses nearly a quarter of the world’s supply.”

The U.S. military is already leading us towards renewable energy. The Air Force, for example, has a goal of 25% of facility energy use from renewable energy by 2025, and Moody AFB is helping with that. Imagine if a substantial part of the military’s budget was repurposed to implementing renewable energy throughout the country to get us off of foreign oil. Now that would be national security!

And we don’t have to wait for Washington or Atlanta to get on with it right here in Lowndes County, for security, environmental preservation, jobs, and profit.

-jsq

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….

-jsq

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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The costs of coal on your neighbors’ health

We can’t afford the costs of coal on our health.

John Sepulvado wrote for CNN Radio 1 April 2012, A power plant, cancer and a small town’s fears,

The two of them invested their life savings building their home. It’s a large ranch house on several acres, and the plan was the two of them would leave it for their sons and grandchildren. They gave up that dream after Maddox’s mother developed a rare form of ear cancer and died after living at the home for three years.

“I’m not going to bring my grandchildren up in this,” Maddox says. “Anybody who does would be a fool, I think.”

The problem, Maddox explains, is now he and his neighbors are getting sick. For Maddox, the first signs of trouble would come in the middle of the night, when he would wake up with nose bleeds mixed with clear mucus. Then his muscles started twitching, and then he got kidney disease, and then sclerosis of the liver.

Where does he live? Down the road from Plant Scherer in Juliette, Georgia: the nation’s dirtiest coal plant.

Georgia Power’s solution? Buy houses like his, cap the well, and raze the house.

Better solution? Get off of health-destroying moribund coal and get on with clean distributed wind and solar, for the profit (even to Georgia Power), for energy independence, for resilience, and yes, for our health.

-jsq