PSC staff backs Ga. Power nukes, but with conditions

Georgia Power and state Public Service Commission staff laid out their differences Monday over costs and other aspects of the company’s planned nuclear expansion.

The differences were stark, despite the fact that the PSC staff cautiously endorsed that expansion overall.

Staff members and their consultants were testifying in a second round of hearings in a PSC review process scheduled to last until March.

The hearings are scheduled to resume Wednesday, with testimony reserved for parties opposing all or part of Georgia Power’s request.

Big industrial and commercial users and Southern Alliance for Clean Energy officials are among the witnesses scheduled this week.

Georgia Power wants to build two reactors at its Vogtle nuclear plant near Augusta, saying the plants are needed to meet future power needs.

The total cost is an estimated $14 billion, shared between Georgia Power and the state’s electric membership cooperatives and municipal power companies. Georgia Power’s estimated share is $6.4 billion.

The PSC’s public interest staff came down in favor of the proposal overall, but recommends it only under certain conditions.

The staff opposes a company request to charge customers about $1.6 billion of the cost of the new reactors before those reactors are finished.

The staff also wants to create a cost-containment mechanism that would penalize the company for overruns and reward it for bringing the reactors in under budget.

The proposal would allow Georgia Power to recoup a higher return on its costs if the reactors come in $250 million or more under budget and a lower return if it comes in $250 million or more over budget.

The mechanism would transfer at least some of the risk of the project to Georgia Power, staff analyst Dan Cearfoss said.

The idea prompted sharp questions from commissioner Stan Wise, who said the proposal would penalize the company even for cost overruns that were reasonable or needed for public safety.

And Georgia Power’s attorney, Kevin Greene of Troutman Sanders, said that proposal was non-negotiable.

He said the company wouldn’t go forward with the reactors under those conditions.

So, “what do we build now?” he asked.

Monday’s hearing began with about 40 minutes of public testimony from individuals and groups opposed to Georgia Power’s nuclear expansion in general.

Krista Brewer, representing the anti-nuclear group Women’s Action for New Directions, said nuclear power is too costly and an environmental, human health and terrorism risk. She also said the industry had yet to figure out what to do with radioactive reactor waste.

“Stop putting all of our energy eggs in one costly, outdated dinosaur form of energy,” Brewer said.

After this week’s hearings wrap up, the company has until Jan. 26 to file rebuttal testimony.

The commission is scheduled to vote in March. The U.S. Nuclear Regulatory Commission and environmental regulators also have to approve the plans.