State utility regulators are expected to decide today whether Georgia Power can close some of its dirtiest power-producing units to comply with environmental rules, a move that consumer advocates say will excessively raise customer bills.
If the Georgia Public Service Commission approves all of Georgia Power’s requests, consumers could be paying to close two coal-fired units and a oil unit that hasn’t been operating since 2009. Consumers also could be paying for the utility to buy more than 1,500 megawatts of power from other companies generated by natural gas. Consumer advocates say that is more than the utility needs.
“There will be significant repercussions to ratepayers based upon the decisions the commission makes,” said Clare McGuire, senior counsel and consumer energy program director at Georgia Watch, a consumer advocacy group.
Georgia Power wants to close two coal-fired units at Plant Branch and an oil unit at Plant Mitchell. The utility wants to recoup money for materials and supplies at those power stations that cannot be used once those units are shut down.
Georgia Power’s request was made in August to prepare for a suite of U.S. Environmental Protection Agency rules that require utilities to curb pollutants such as sulfur dioxide (SO2), nitrogen oxide (NOx) and mercury. The utility warned then that complying with regulations to cut toxic emissions will cost from $741 million to nearly $3 billion and lead it to close or refit six additional coal or oil-fired plants by 2015.
The company’s August plan does not disclose how much money customers would pay to upgrade plants, buy additional energy and cover other costs.
“The lives of Plant Branch 1 and 2 are going to be cut short because of EPA regulations,” Georgia Power attorney Brandon Marzo argued before the commission recently. “You cannot penalize the company for making cost-effective decisions.”
To offset the amount of electricity that will be removed from the grid once these units — and potentially others — are closed, Georgia Power also wants to buy 1,562 megawatts from other companies. The utility says striking these long-term contracts now is necessary to ensure the company has a required 15 percent electricity reserve to prevent blackouts on peak days.
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