Your Georgia legislature recently passed SB31, a proposal written at the behest of Georgia Power, supported and promoted by Georgia Power, to allow Georgia Power to recoup costs up front for future construction of two new nuclear reactors at Plant Vogtle.

It’s hard to know where to begin discussion of a piece of legislation so misguided, so tainted, so unfair to ratepayers. So here’s a start:

1. A Georgia Power proposal, written by Georgia Power lobbyists, and supported through the legislature by Georgia Power wasn’t enough to tell us all who would benefit here?

2. Senator Don Balfour sponsored the legislation. He claims the early repayment of the construction costs for two nuclear reactors will save Georgia ratepayers $300 million because they could begin paying off interest on the construction loans sooner. However, the PSC’s staff claims that when the cost of money is taken into account, the pre-payments actually cost ratepayers $218 million in net present value dollars over the life of the plants.

3. Jeff Pollock, the energy advisor and international nuclear finance consultant who testified before the PSC in December, stated that under the proposal, ratepayers would pay $740 million more overall. He also stated that the traditional rate structure is more appropriate because it provides incentives for Georgia Power to minimize costs by completing construction on time and within budget.

4. Cost overruns, which historically run at 157 percent for construction of nuclear facilities, will be paid for by ratepayers. SB31 takes all the risk away from Georgia Power shareholders, and places it squarely on the shoulders of ratepayers – that’s you and me. It also strips the PSC of authority to protect Georgia Power customers from such overruns. Georgia Power, on the other hand, will collect $1.6 billion in profit on power plants that aren’t even built yet.

5. Georgia Power customers will now see an increase in their bills starting in 2011, for nuclear facilities that are scheduled to be completed in 2017. (And if you believe that completion date, I’ve got some swampland in Florida I’ll sell you, cheap.) Ratepayers will begin recovering their costs in 2018 and should break even in 2035. How old will you be then?

6. Sen. Balfour claims this repayment structure is in use in other states. In fact, Florida is now frantically working to suspend its early cost recovery plan. In Alabama, estimated construction costs for the Bellefonte nuclear facility have now more than doubled from calculations made just 12 months ago.

7. The PSC’s own staff advised against SB31, stating that this proposal forces current customers to pay for future customers, which is fundamentally unfair.

8. Sen. Balfour compares SB31 to buying a car. “If you buy a car and put it on your credit card, you’re going to pay a lot of money. If you save a little money and pay some of the cost up front, you pay a lot less.” In fact, SB31 is more like paying for a car before it is built. You would have no control over delays during the build process, and if the cost of the competed car is, say, twice as much as you were promised, you will pay that, too.

9. After the Georgia legislature gave the go-ahead, it was up to the Georgia PSC to make the final determination. Although Georgia Watch, numerous consumer advocacy groups, and the PSC’s own staff recommended against SB31, the PSC voted in favor, 4-1. Commissioner Robert Baker stood alone in his opposition.

10. Passing this legislation turns our Republican leaders into lapdogs for big business. At a time when Georgia’s conservative leaders should be protecting the pocketbooks of taxpayers, they have supported huge profits and limitless power for a monopoly.

Our Republican leaders, including Casey Cagle, Chip Rogers, Ronnie Chance and Matt Ramsey, voted in favor of SB31. Let’s remember whom to thank in the coming years when our power bills soar, the PSC is powerless to protect consumers, Vogtle’s new reactors are years behind schedule, construction costs have multiplied, and Georgia Power customers – that’s you and me – have no recourse whatsoever.

Kimberly Learnard

Peachtree City, Ga.

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