Georgia Power gets its wish as opponents fume

In a deepening recession, a Republican-dominated Legislature with a strong aversion to increasing taxes last week approved a bill allowing Georgia Power to charge customers early for nuclear reactors.

Georgia Power says the bill’s success speaks to its merits. Critics — ranging from consumer advocates to conservative bloggers — point to the company’s powerful lobbying effort: businesslike, efficient and devastatingly effective.

The company supplemented its year-round statehouse lobbying team with five of the biggest, most connected names in Georgia. It pulled in its law firm, registered its chief executive as a lobbyist and spent thousands buying lawmakers meals and sports tickets, burnishing its reputation as the most polished lobbying outfit around.

It was a textbook example of how to get one’s way at the Capitol, said state Rep. Mary Margaret Oliver (D-Decatur), who opposed the bill. She meant it as a compliment.

“They’re comfortable with all of us,” she told fellow House members before Thursday’s vote. “They extend themselves to all of us.”

Less than an hour after Oliver spoke, SB 31 passed and was sent to Gov. Sonny Perdue for his signature — among the first bills approved this legislative session. House members were in such a hurry that they broke with tradition and left hundreds of House bills waiting while they OK’d a Senate bill.

Georgia Power says the bill is a good deal for consumers and will hold down costs as it builds two new reactors at its Vogtle nuclear plant near Augusta.

“We think the bill passed because it provides millions of dollars in savings for customers, it phases in the [reactors’] costs and lowers the overall rate impact,” spokeswoman Christy Heiser said. “The bill makes additional reactors an option for our future.”

House Majority Leader Jerry Keen (R-St. Simons Island) scoffed at speculation that pressure from Georgia Power and its lobbyists propelled the bill forward.

“I’ve heard the media say there was pressure,” he said. “I never heard it, saw it, felt it at all. I read the bill. It’s sort of the unique thing I do, I read the facts of the bill, I listened to the arguments, sat down and looked at it.”

To SB 31’s critics, though, the bill’s unusually swift passage is proof of what they say has been true for years: It’s awfully tough to beat Georgia Power at the Capitol. The company’s political reach is so deep that even the governor’s chief of staff, Ed Holcombe, is a former Georgia Power lobbyist.

The company’s political influence, consumer lobbyist Jim Kulstad said, “is insidious.”

Big industries left out

SB 31 allows Georgia Power to charge customers an estimated $1.6 billion in financing charges and an additional $400 million in related taxes between 2011, when construction of two nuclear reactors begins, and 2017, when the reactors are done.

The utility’s portion of the total estimated $14 billion cost will be $6.4 billion.

Georgia Power says the early charges protect its bond rating in addition to lowering the reactors’ overall cost by about $300 million.

Opponents included AARP, radio consumer expert Clark Howard, consumer group Georgia Watch and conservative blogs such as Peach Pundit and Political Vine.

They said the bill allowed Georgia Power investors to earn a profit on the reactors before they’re built and that legislators were doing an end run around the state Public Service Commission, the utility regulator that was due to vote on the same issue this month.

Georgia Power began lobbying for its plan last summer, months before it had been assigned a bill number.

It defanged powerful potential opponents — Georgia’s biggest industries, which objected to paying the early higher rate — by largely exempting them from the bill.

Still, SB 31’s opposition appeared to be gaining traction in the past two weeks.

Conservative bloggers, including Erick Erickson of Peach Pundit, were furious with GOP leaders for backing the bill.

Erickson, a Macon blogger who also runs the national Web site RedState.com, organized a campaign to derail the bill. Erickson said he favors nuclear power but that SB 31 would benefit Georgia Power and the state’s biggest businesses at the expense of other consumers and businesses.

In an interview, Erickson said he thinks the company and legislative leaders moved the bill so quickly rather than allow criticism to build.

“Once we started opposing it and people started getting phone calls, people started rushing it down the pike,” he said.

‘Relationships win’

SB 31 opponents credit Georgia Power’s lobbying prowess with the bill’s victory.

“This happens because lobbyists are allowed to give, literally, completely unlimited gifts to senators and representatives,” said Rep. Rob Teilhet (D-Smyrna), who called SB 31 a “breathtakingly bad bill for Georgia consumers.”

“Georgia Power has given hundreds of thousands of dollars in gifts and liquor and baseball tickets to legislators, currying their favor.”

In the three months before the Legislature convened, Georgia Power lobbyists spent more than $14,000 on lawmakers and other state officials, according to State Ethics Commission reports.

Of that, $8,000 went to meals, sports tickets and other gifts to 68 lawmakers who voted on SB 31. All but $700 went to lawmakers who later voted to approve the bill.

The spending included about $100 for two dinners with Sen. David Shafer (R-Duluth), chairman of the Senate Regulated Industries Committee, which first approved the bill; more than $300 for lunch for the entire Senate committee; $795 for dinners and sporting events for House Speaker Pro Tem Mark Burkhalter (R-Johns Creek); and about $100 for three meals with Sen. Don Balfour (R-Snellville), the primary sponsor of the bill.

Georgia Power hired some deeply connected lobbyists to help make its case, including former Senate Majority Leader Pete Robinson, former Senate Minority Leader Arthur “Skin” Edge and former Natural Resources Commissioner Joe Tanner.

Bill opponents such as Oliver and Rep. Brian Thomas (D-Lilburn) say it’s a mistake to link the utility’s success with lawmakers with campaign money or sports tickets. They say Georgia Power’s lobbying operation has left the company with a deep reservoir of goodwill. Oliver said Georgia Power’s lobbyists avoid the kind of back-slapping that often goes with the lobbying territory.

Instead of relying solely on the most powerful lawmakers, “My understanding is that they spoke with every single legislator,” Thomas said. “I had two meetings with them on this.”

“They are very thorough in their outreach, and they do a very good job of talking to you even when the session is out, whether they have issues or not.

“It absolutely helps them,” Thomas said. “There was probably a majority of members who were kind of wishy-washy on this either way. That’s where relationships win.”

— Data specialist John G. Perry contributed to this article.

HOW THEY VOTED
The final vote in the Senate and the House on SB 31, the bill allowing Georgia Power to begin charging customers in 2011 for the construction of new nuclear power plants. The bill passed Thursday and is on its way to Gov. Sonny Perdue’s desk.
House: Feb. 26 — 107 voted in favor 66 against
NOT VOTING
Earnest Williams (D-Avondale Estates)
Glenn Richardson (R-Hiram)
Ron Stephens (R-Savannah)
EXCUSED
Gerald Greene (D-Cuthbert)
Glenn Baker (D-Jonesboro)
Pam Stephenson (D-Decatur)
Stacey Abrams (D-Atlanta)
VOTING NO
Alan Powell (D-Hartwell)
Alisha Morgan (D-Austell)
Austin Scott (R-Tifton)
Barbara Reece (D-Menlo)
Billy Mitchell (D-Stone Mountain)
Bob Bryant (D-Garden City)
Bob Hanner (D-Parrott)
Bobby Franklin (R-Marietta)
Bobby Parham (D-Milledgeville)
Bobby Reese (R-Sugar Hill)
Brian Thomas (D-Lilburn)
James Epps (D-Dry Branch)
Burke Day (R-Tybee Island)
Carl Rogers (R-Gainesville)
Carolyn Hugley (D-Columbus)
Celeste Johnson (D-Jonesboro)
Craig Gordon (D-Savannah)
David Lucas (D-Macon)
David Ralston (R-Blue Ridge)
Debbie Buckner (D-Junction City)
Don Wix (D-Mableton)
Doug McKillip (D-Athens)
DuBose Porter (D-Dublin)
Ed Rynders (R-Albany)
Elly Dobbs (D-Atlanta)
Georganna Sinkfield (D-Atlanta)
Hugh Floyd (D-Norcross)
Jill Chambers (R-Atlanta)
Kathy Ashe (D-Atlanta)
Lee Thompson (D-Lawrenceville)
Margaret Kaiser (D-Atlanta)
Mark Butler (R-Carrollton)
Mark Hatfield (R-Waycross)
Mack Jackson (D-Sandersville)
Martin Scott (R-Rossville)
Mary Margaret Oliver (D-Decatur)
Michael Harden (R-Cordele)
Michele Henson (D-Stone Mountain)
Mickey Stephens (Savannah)
Mike Jacobs (R-Atlanta)
Pat Dooley (D-Marietta)
Pat Gardner (D-Atlanta)
Penny Houston (R-Nashville)
Pete Marin (D-Duluth)
Rahn Mayo (D-Decatur)
Ralph Long (D-Atlanta)
Randal Mangham (D-Decatur)
Rashad Taylor (D-Atlanta)
Rich Golick (R-Smyrna)
Rick Austin (D-Demorest)
Rick Crawford (D-Cedartown)
Rob Teilhet (D-Smyrna)
Robbin Shipp (D-Atlanta)
Roberta Abdul-Salaam (D-Riverdale)
Roger Bruce (D-Atlanta)
Roger Lane (R-Darien)
Sharon Beasley-Teague (D-Red Oak)
Sheila Jones (D-Decatur)
Stephanie Benfield (D-Atlanta)
Stephen Allison (R-Blairsville)
Terry Johnson (R-Marietta)
Timothy Bearden (R-Villa Rica)
Toney Collins (D-Conyers)
Tyrone Brooks (D-Atlanta)
Virgil Fludd (D-Fayetteville)
Winfred Dukes (D-Albany)
VOTING YES
Al Williams (D-Midway)
Allen Peake (R-Macon)
Amos Amerson (R-Dahlonega)
Amy Carter (D-Valdosta)
Barbara Sims (R-Augusta)
Barry Loudermilk (R-Cassville)
Ben Harbin (R-Evans)
Bill Hembree (R-Winston)
Billy Horne (R-Newnan)
Billy Maddox (R-Zebulon)
Bob Lane (R-Statesboro)
Bob Smith (R-Watkinsville)
Brooks Coleman (R-Duluth)
Buddy Carter (R-Pooler)
Buddy Harden (R-Cordele)
Butch Parrish (R-Swainsboro)
Calvin Hill (R-Canton)
Calvin Smyre (D-Columbus)
Carl Epps (D-LaGrange)
Carol Fullerton (D-Albany)
Cecily Hill (R-Kingsland)
Charlice Byrd (R-Woodstock)
Chuck Martin (R-Alpharetta)
Chuck Sims (R-Ambrose)
Clay Cox (R-Lilburn)
Darryl Jordan (D-Riverdale)
David Casas (R-Lilburn)
David Knight (R-Griffin)
Dee Dawkins-Haigler (Lithonia)
Don Parsons (R-Marietta)
Donna Sheldon (R-Dacula)
Doug Collins (R-Gainesville)
Doug Holt (R-Social Circle)
Earl Ehrhart (R-Powder Springs)
Ed Setzler (R-Acworth)
Edward Lindsey (R-Atlanta)
Ellis Black (D-Valdosta)
Fran Millar (R-Dunwoody)
Gene Maddox (R-Cairo)
Gloria Frazier (D-Hephzibah)
Greg Morris (R-Vidalia)
Hardie Davis (D-Gracewood)
Harry Geisinger (R-Roswell)
Henry Howard (D-Augusta)
Howard Maxwell (R-Dallas)
Howard Mosby (D-Atlanta)
James Mills (R-Gainesville)
Jan Jones (R-Decatur)
Jay Neal (R-LaFayette)
Jay Powell (R-Camilla)
Jay Roberts (R-Ocilla)
Jay Shaw (R-Lakeland)
Jeff May (R-Monroe)
Jerry Keen (R-St. Simons Island)
Jim Cole (R-Forsyth)
Jimmy Pruett (R-Eastman)
Joe Heckstall (R-East Point)
Joe Wilkinson (R-Sandy Springs)
John Lunsford (R-McDonough)
John Meadows (R-Calhoun)
John Yates (R-Griffin)
Jon Burns (R-Newington)
Judy Manning (R-Marietta)
Karla Drenner (D-Avondale Estates)
Katie Dempsey (R-Rome)
Keith Heard (R-Athens)
Kevin Levitas (D-Atlanta)
Larry O’Neal (R-Warner Robbins)
Lee Anderson (R-Grovetown)
Len Walker (R-Loganville)
Lynmore James (D-Montezuma)
Lynn Smith (R-Newnan)
Mark Burkhalter (R-Alpharetta)
Mark Hamilton (R-Cumming)
Mark Williams (R-Jesup)
Matt Dollar (R-Marietta)
Matt Ramsey (R-Peachtree City)
Melvin Everson (R-Snellville)
Mickey Channell (R-Greensboro)
Mike Cheokas (D-Americus)
Mike Coan (R-Lawrenceville)
Mike Glanton (D-Ellenwood)
Mike Keown (R-Coolidge)
Nikki Randall (R-Macon)
Paul Battles (R-Cartersville)
Quincy Murphy (D-Augusta)
Randy Nix (R-LaGrange)
Richard Smith (R-Columbus)
Roger Williams (R-Dalton)
Sean Jerguson (R-Canton)
Sharon Cooper (R-Marietta)
Sistie Hudson (D-Sparta)
Steve Davis (R-McDonough)
Terry Barnard (R-Glennville)
Terry England (R-Auburn)
Tom Dickson (R-Cohutta)
Tom Graves (R-Ranger)
Tom Knox (R-Cumming)
Tom McCall (R-Elberton)
Tom Rice (R-Norcross)
Tom Weldon (R-Ringgold)
Tommy Benton (R-Jefferson)
Tommy Smith (R-Nicholls)
Tony Sellier (R-Fort Valley)
Vance Smith (R-Pine Mountain)
Wendell Willard (R-Sandy Springs)
Willie Talton (R-Warner Robbins)
Senate: Feb. 11 — 38 voted in favor 16 against
NOT VOTING
Gail Buckner (D-Morrow)
EXCUSED
George Hooks (D-Americus)
VOTING NO
Curt Thompson (D-Tucker)
David Adelman (D-Decatur)
Doug Stoner (D-Smyrna)
Freddie Sims (D-Dawson)
Gloria Butler (D-Stone Mountain)
Horacena Tate (D-Atlanta)
Jeff Chapman (R-Brunswick)
Kasim Reed (D-Atlanta)
Lester Jackson (D-Savannah)
Nan Orrock (D-Atlanta)
Preston Smith (R-Rome)
Robert Brown (D-Macon)
Ronald Ramsey Sr. (D-Decatur)
Steve Henson (D-Tucker)
Steve Thompson (D-Marietta)
Vincent Fort (D-Atlanta)
VOTING YES
Bill Cowsert (R-Athens)
Bill Hamrick (R-Carrollton)
Bill Heath (R-Bremen)
Bill Jackson (R-Appling)
Jack Hill (R-Reidsville)
Cecil Staton (R-Macon)
Chip Pearson (R-Dawsonville)
Chip Rogers (R-Woodstock)
Dan Moody (R-Alpharetta)
Dan Weber (R-Dunwoody)
David Shafer (R-Duluth)
Don Balfour (R-Snellville)
Don Thomas (R-Dalton)

Ed Harbison (D-Columbus)
Ed Tarver (D-Augusta)

Emanuel Jones (D-Decatur)
Eric Johnson (R-Savannah)
Greg Goggans (R-Douglas)
J.B. Powell (D-Blythe)
Jack Murphy (R-Cumming)
Jeff Mullis (R-Chickamauga)
Jim Butterworth (R-Cornelia)
John Bulloch (R-Ochlocknee)
John Crosby (R-Tifton)
John Douglas (R-Social Circle)
John Wiles (R-Marietta)
Johnny Grant (R-Milledgeville)
Judson Hill (R-Marietta)
Lee Hawkins (R-Gainesville)
Mitch Seabaugh (R-Sharpsburg)
Ralph Hudgens (R-Hull)
Renee Unterman (R-Buford)
Ronnie Chance (R-Tyrone)
Ross Tolleson (R-Perry)
Seth Harp (R-Midland)
Tim Golden (D-Valdosta)
Tommie Williams (R-Lyons)
Valencia Seay (D-Riverdale)