Controversial Georgia Power bill clears legislature

The House easily passed a bill Thursday allowing Georgia Power to charge customers early for additional nuclear reactors, sending the controversial measure on to Gov. Sonny Perdue for a signature.

Senate Bill 31 jumped ahead of the state budget and a line of 585 pending House bills to get the top spot on the House’s agenda, despite fierce attacks from groups ranging from AARP to conservative bloggers.

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Customers' bottom line
According to the company, the reactor fee on a $100 monthly bill would start at $1.30 in 2011, then rise gradually to about $9.10 by 2017, if the company collects financing charges early.

If the company charged under the traditional method, customers would pay nothing until 2016.

Then they would see $5.85 jumps in 2016 and 2017, resulting in an additional $11.70 on a $100 bill.

Customers under either scenario would pay a gradually declining amount for the reactors over the next 60 years.

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House members weren’t allowed to offer amendments.

Opponents credited SB 31’s favored status to Georgia Power’s clout and to backers’ race to outrun a growing list questions about the bill.

SB 31 passed 107 to 66, after nearly four hours of speeches, most denouncing the measure.

The state Senate approved the bill two weeks ago. Perdue is expected to sign it.

SB 31 allows Georgia Power to collect an estimated $1.6 billion from customers in the six years between 2011, when construction on two reactors begins, and 2017, when the reactors are finished.

SB 31’s backers say that would cut about $300 million in financing costs off the utility’s $6.4 billion price tag for the reactors.

SB 31’s House sponsor, Rep. Ben Harbin (R-Evans), called the bill a boon for consumers and the state’s energy future.

“There’s been a lot of misinformation out there, but this bill does one simple thing,” he said. “It will ultimately save us $300 million. …This debate is about whether consumers should have to pay that $300 million.”

Supporters held up Georgia Power’s record of community service and its track record during power outages as reasons to support the bill.

They said they supported nuclear power and that the funding bill’s opponents were anti-nuclear.

One SB 31 supporter, Rep. Karla Drenner (D-Avondale Estates), even suggested that SB 31 would hold down the price of gasoline at the pump.

Opponents dominated the speeches if not the vote.

They repeatedly proclaimed support for both nuclear power and Georgia Power.

“Georgia Power is good for Georgia,” said Rep. DuBose Porter (D-Dublin).

“But this bill is not good for Georgia”

Opponents said SB 31’s supporters hadn’t been straight about the bill’s effects.

Rep. Brian Thomas (D-Lilburn) said legislators had heard repeatedly that the early charges would prevent customers from paying $300 million in “interest on interest.”

Lawmakers learned this week in committee meetings that most of the early charges would instead fund early returns for utility stockholders and taxes on those profits.

Thomas said the savings figure had been oversold.

“They say this is going to save us all money,” he said. “Pay a little now so that we don’t pay more later.”

The reality, he said, is that customers pay $2 billion over the next five to six years and you’ll save $300 million over the next 60 years, over the life of the plant.”

Supporters and opponents also argued over the role of the state Public Service Commission, which is now debating the same early charge question.

The PSC is scheduled to vote on that next month, although Thursday’s decision takes away its power to make that decision.

State Rep. Alan Powell (D-Hartwell) questioned why the Legislature was getting involved in PSC matters.

“We have a very pro-business PSC,” Powell said.”They’re very favorable to the utilities. What is the necessity of doing this here?”

Harbin said the new law would create the kind of stability Georgia Power needs to build new reactors.