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Georgia Power Remains Undecided on Atlanta-Area Power-Complex Expansion

Posted on: Sunday, 28 May 2006, 00:00 CDT

By Robert Luke, The Atlanta Journal-Constitution

May 26--Georgia Power Co. hasn't decided yet on whether to expand the Plant Vogtle nuclear power complex near Augusta.

But one thing is certain. The utility will be dogged every step of the way -- even as it studies the matter -- by those opposed to the use of nuclear power to generate electricity.

That was evident at a Georgia Public Service Commission hearing Thursday as more than 15 people, some representing groups such as the Southern Alliance for Clean Energy, testified against the nuclear option. They cited potential cost overruns, along with health and environmental concerns.

Instead, they recommended the utility spend its dollars to pursue other ways of producing more electricity, including wind power, solar power and the use of biomass fuels, such as switchgrass. They also urged conservation on the part of customers, so as to forestall the need to build more power plants.

Georgia Power reckons it needs to boost generating capacity to meet future demand. The utility, which hasn't built a major power plant in 26 years, argues that while alternative energy sources can help meet a portion of that demand, expanding those sources isn't cost-effective.

And it worries about the future supply, and cost, of natural gas to fuel its power plants.

The utility, a unit of Atlanta-based Southern Co., last year used a mix of fuels to power its plants -- 66 percent coal, 19 percent nuclear, 11 percent natural gas and 4 percent from water sources.

Now, it's planning to spend $51 million to study the feasibility of expanding the nuclear complex at Plant Vogtle. These include early site permitting and construction operating license costs.

Vogtle currently has two units. Two more could be added.

Georgia Power has 15,097 megawatts of generating capacity. It wants to add about 600 megawatts and 500 megawatts, respectively, in 2015 and 2016, when the two units potentially could come online.

Given the long lead times to get a nuclear power plant built and operating, Georgia Power is asking the PSC to allow it to defer those costs for accounting purposes.

That will allow the company to recover those costs from customers in a future rate case. Otherwise, the company would expense those costs as they are incurred and pass them on to ratepayers.

But opponents said allowing the deferral of those costs would, in effect, give the nuclear option precedence over others.

"You are tilting in the direction of one form of energy," said Rep. Nan Orrock (D-Atlanta).

"It's an unprecedented attempt to get into ratepayers' pockets," said Sen. Vincent Fort (D-Atlanta).

The PSC is expected to decide the matter next month.

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Copyright (c) 2006, The Atlanta Journal-Constitution

Distributed by Knight Ridder/Tribune Business News.

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SO,

Source: The Atlanta Journal and Constitution

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