GA Power, GA PSC latest plans to pass Plant Vogtle’s $8.6 billion dollar cost to Georgia ratepayers

Georgians should hold on to your purses and wallets as Georgia Power and the Georgia Public Service Commission (PSC) are at it again as they make their latest plans to saddle consumers with the cost of Georgia Power’s nuclear power plants to the tune of billions of dollars. 

Georgia Power is seeking approval from state regulators at the PSC for a preliminary plan that would shift most of the remaining costs of Plant Vogtle’s expansion onto customers’ bills. The proposal involves collecting $7.56 billion in capital and construction costs from ratepayers for two new reactors at the Vogtle site near Augusta.

The company’s shareholders would cover the remaining $2.63 billion.

Over a day and a half of hearings, Georgia Power pushed the Republican led PSC to approve their plan to roll most of the remaining costs of Plant Vogtle’s expansion, billions of dollars, onto the backs of customers via their utility bills. The proposal to raise rates requires approval from the five elected members of the PSC, who are set to decide on December 19 whether to approve or modify the plan.

The current proposal for rate increases related to Plant Vogtle is not the first sought by Georgia Power this year. Earlier in 2023, the company requested and received approval for several rate increases associated with the Plant Vogtle expansion.

These increases have placed financial burdens on ratepayers comprised of families, seniors and veterans who are already struggling to keep food on the table and a roof over their heads with limited finances in a difficult economy. 

People we spoke to in the community say it is not uncommon for utilities to seek periodic adjustments in rates to cover various expenses, but the frequency and magnitude of the increases Georgia Power has sought and received from the PSC is ‘insane’ and amounts to ‘corporate welfare’ and that the utility company is receiving substantial financial support at the expense of ratepayers.

They also questioned the judgment of the members of the PSC, a board that is supposed to protect ratepayers. They say that instead of protecting ratepayers, the current PSC has allowed Georgia Power to pillage Georgians at will.

As the PSC leans towards approving the latest rate increase, it is clear to many that the regulatory agency is not concerned about the impact or interests of the ratepayers.

Many we spoke to say that Georgia Power stockholders should bear the cost of their projects, not ratepayers, as they point to billion dollar quarterly reports the company has been posting.

They suggested that the members of the PSC read this report before the vote to allow Georgia Power to place the cost of their nuclear plants on the backs of consumers who are not stockholders that benefit from the healthy financial reports they put out each quarter. 

Unbeknownst to may who have spoken out against this plan, it has been suggested that the PSC’s public interest staff, the Georgia Association of Manufacturers, the environmental organization Georgia Interfaith Power and Light and the consumer advocacy group Georgia Watch came to an agreement and approved the $7.56 billion increase before the hearings on this meeting began.

However, not everyone agrees with the proposed deal as many citizens and advocacy groups spoke out against the proposed rate increases and the agreement. In addition to others, Patty Durand, an energy consultant who frequently advocates for Georgia ratepayers, testified on behalf of the consumer advocacy group Concerned Ratepayers of Georgia.

Durand criticized the agreement as a “backroom deal” that would negatively impact Georgia Power customers. Durand is the Democratic candidate for the PSC’s District 2 seat held by Tim Echols. 

The Vogtle expansion was initially expected to cost $14 billion, but spending by all project partners has now exceeded $35 billion.

The first new reactor, Unit 3, was completed over seven years behind schedule, and the second reactor, Unit 4, is still incomplete, with a fresh delay pushing its completion to early next year, at least six years later than expected.

The proposal to raise rates must be approved by the five elected members of the PSC, who on Dec. 19 are set to decide whether to approve or tweak the plan.