Two nuclear reactors get green light

The Georgia Public Service Commission approved Tuesday two additional nuclear reactors for Georgia Power.

The decision means the utility can begin expanding its Vogtle nuclear plant two years from now, as long as it gets all other needed permits.

Customers will begin paying for the $6.4 billion project in 2011, as allowed in a bill the Legislature passed last month. Construction on the reactors is expected to be completed in 2017.

The Legislature saved the PSC from making a decision on the pre-completion charges, but Tuesday’s vote strongly hinted at what the PSC would have done.

By a 4-1 vote, the PSC rejected a proposal that would have lowered customer bills during the reactors’ first years of operation, as a kind of reward for ratepayers’ early payment of financing fees.

In doing so, the PSC went further than even Georgia Power had asked.

While opposing the trade-off, the utility had been willing to keep the debate open until after it files a rate hike request next year.

Tuesday’s vote capped a long fight that jumped from the PSC to the Legislature and back again. By last week, PSC staff and Georgia Power had settled most issues and agreed to delay two.

They agreed to negotiate six more months on a proposal tying profits to the utility’s ability to keep its reactors on budget.

And they agreed to wait until 2010 for a decision on any ratepayer trade-offs to balance the early charges state lawmakers approved.

Commissioner Stan Wise moved to reject the second proposal outright.

He said it would raise the price of the reactors long term.

A verbal brawl with Commissioner Robert Baker followed.

“You’re taking a huge gamble with the ratepayers’ money,” Baker said. “We are talking billions of dollars here. This is bigger than a rate case.”

“The company accepted the [delay] recommendation. The advocacy staff accepted the recommendation. Let’s hold off.”

Wise said the PSC “stands guard for the ratepayers’ money” and that it was up to the PSC, not Georgia Power, to decide what’s best.

“Ultimately, it gets right here to the five of us,” Wise said.

“We have the opportunity to do what’s right for the people of Georgia.”

Commissioners Doug Everett, Lauren McDonald and Chuck Eaton backed Wise. Everett said bond rating agencies would be happy. McDonald talked environment: “Can we all agree that nuclear energy is green?” he asked.

Later, a Georgia Power spokeswoman said it would have accepted the delay urged by Baker, but liked what happened instead.

 Staff
Map locates Plant Vogtle near Waynesboro. Inset map outlines area of detail in relation to Atlanta.