Georgia Power Pushes for Extra Cash: Georgia Power Co. is pushing hard for the state’s utility regulators to give the green light to a deal that covers the cost of their shiny new nuclear reactors. Now, there are a few folks down here not too happy about it, still trying to convince the Public Service Commission to put their foot down and stop Georgia Power from collecting any extra cash for the Plant Vogtle reactors.
Hearings kicked off on Monday, and what’s on the table is a deal that would slap an extra $8.95 onto the monthly bill of your average Joe at home. Mind you, that’s on top of the $5.42 Georgia Power is already pocketing. The five commissioners, all Republicans, are set to cast their votes on this $7.56 billion proposal come Dec. 19.
Now, let’s do some math. That means your typical monthly bill, currently hovering around $157, would get a nearly 6% boost. This extra charge kicks in the month after Unit 4 starts doing its commercial dance, which Georgia Power says will be next spring.
This whole shebang is the brainchild of Atlanta-based Southern Co.’s biggest unit, Georgia Power. They unveiled this deal back in August, shaking hands with the commission staff and a few consumer groups. Without this agreement, they’d be in for months of heated debates over just how much Georgia Power should be on the hook for the billions in cost overruns for those two new nuclear reactors near Augusta.
Now, Vogtle’s Unit 3 and Unit 4 are not just your run-of-the-mill reactorsthey’re the first shiny, new American ones built from scratch in decades. Each of these powerhouses can light up a whopping 500,000 homes and businesses without even breaking a sweat. And let’s not forget, they’re doing all this with no carbon fuss.
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But, you know how it goes. Even as some folks are eyeing nuclear power as a savior for climate change, the hefty price tag of Vogtle might make other utilities think twice about venturing into the nuclear territory.
Now, here’s where it gets wild. The grand total for this Vogtle project, including financing, is sitting at a cool $31 billion for Georgia Power and its three partners. Toss in the $3.7 billion that Westinghouse paid to walk away from the construction mess, and we’re talking nearly $35 billion. Yep, those reactors are seven years fashionably late and a staggering $17 billion over budget.
So, how much is Vogtle expected to cost Georgia Power to build? Well, they’re looking at a neat $10.2 billion, plus an extra $3.5 billion in financing costs. The Georgia Power Chief Financial Officer, Aaron Abramovitz, spilled the beans on Monday. He claimed the company could’ve asked the commission to hand them $8.83 billion for the construction cost, but instead, they settled for a more humble $7.56 billion.
Abramovitz stood tall and testified, “This strikes an appropriate balance among complex technical issues and provides for the recovery of reasonable and prudent costs for the project.”
Now, some groups shook hands with Georgia Power back in August, saying this was the best deal they could land. Why? Well, they figured the commissioners might’ve thrown an even higher number on the table because, historically, they’ve been pretty buddy-buddy with the utility.
But, hold your horses, not everyone’s pleased with this arrangement. Patty Durand, a Democrat eyeing a match-up with Republican Tim Echols, isn’t holding back. She’s firing shots, claiming this deal is giving away the farm and does zilch to hold Georgia Power accountable for its missteps. Patty argues it’s also robbing customers of a full rundown of the mess in Vogtle’s construction.
Patty’s got questions: “Where are the cost disallowances for the failures documented in staff reports? Where is the study on what went wrong? Where is the bill pay assistance that the largest rate increase in the history of the state should necessitate?”
She’s throwing down the gauntlet, saying Georgia Power should only pocket the $6.1 billion they initially promised for construction and financing. And if that’s too much to ask, it should at least be the starting point for some good negotiations.
“You don’t start with the worst possible outcome for yourself, which is your opponent’s position, and negotiate down,” Patty declares. “That is not a win.”
And wait, there’s more. Patty and the gang are also making a fuss, saying the vote shouldn’t go down before we have elections to fill the seats currently occupied by Commissioners Tim Echols and Fitz Johnson. They were supposed to face the voters in 2022, but a court case threw a wrench in the gears. The balloting got pushed back as they argued about making Georgia voters pick commissioners by district. A federal appeals court shut that idea down just last month.
Just so you know, Georgia Power is the proud owner of 45.7% of those reactors. The smaller shares are divvied up among Oglethorpe Power Corp., the Municipal Electric Authority of Georgia, and the city of Dalton. Oh, and some utilities in Florida and Alabama have signed on the dotted line to get a taste of Vogtle’s power.
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Our Reader’s Queries
Why is GA power going up?
Recovering the increased costs for fuels is simply a necessity given the substantial rise in prices, according to Kraft. Just like how Georgians had to shell out more at the gas pump, Georgia Power had to cope with escalated prices for the fuels used in electricity generation, especially natural gas.
How can I lower my GA power bill?
During the summer, keep the thermostat at 78°F, and in the winter, set it to 68°F. Remember, for every degree you lower the thermostat in the summer or raise it in the winter, your energy use goes up by 3-4%.
What are the peak hours for Georgia Power?
Georgia Power experiences its highest demand from 2-7 p.m. on summer weekdays, typically from June to September. This is when customers consume the most electricity, leading to higher production costs. By adjusting your energy usage away from this peak period, Georgia Power can offer you savings passed on from reduced production costs.
Is Georgia Power profitable?
Georgia Power raked in a whopping $19.9B in annual revenue. Zippia’s data science squad conducted a deep dive and unearthed some key financial stats about Georgia Power. With a workforce of 8,310, the company’s revenue per employee ratio sits at $2,394,224. Not to mention, their peak quarterly revenue hit an impressive $6.5B in 2023 (q1).