ATLANTA — Georgia Power and the Southern Environmental Law Center have settled on how much the company’s Plant Vogtle’s cost to customers will total out to, according to an announcement from the Public Service Commission.
The Georgia PSC is the governing body that retains oversight of utility companies in the state.
The PSC’s Public Interest Advocacy Staff and Georiga Power reached an agreement on what the overall cost to consumers in the Peach State will be, lowering final costs by more than $2.6 billion.
SELC and three other organizations, Georgia Interfaith Power and Light (GIPL) and Partnership for Southern Equity (PSE), had pushed for changes to save customers billions of dollars in the years to come.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
According to a statement from the PSC, the recovery costs to be collected by Georgia Power from its customers will be reduced from a proposed $10.188 billion to $7.562 billion.
“With the semiannual Vogtle Construction Monitoring reports and the countless hours of analysis on this project, I assume there has been more evidence presented in this docket than in any docket in PSC history,” Chairman Jason Shaw said. “The culmination of construction on this historic project marks the expansion of clean energy production for another 60 to 80 years here in Georgia.”
Should the commissioners agree to the new proposal, ratepayers would save a total of $2.626 billion, specifically regarding cost recovery for the construction of Vogtle Units 3 and 4.
TRENDING STORIES:
- LIVE UPDATES: Hurricane Idalia moves into south Georgia as Category 1 hurricane
- Flight from Italy ends with multiple people injured after landing in Atlanta
- Hurricane Idalia: Gov. Kemp issues State of Emergency for all of Georgia
The roughly $7.56 billion cost recovery cap is based on costs Georgia Power said were, or will be, incurred in the lead-up to Vogtle Unit 4′s commercial activation on March 31, 2024.
Any costs tallied after that date will not be the responsibility of the company’s customers, but just Georgia Power, according to PSC.
The next step, now that staff and the power company have agreed to a lowered cost recovery, will be a series of public hearings.
Previous cost expectations were set at $7.294 billion, which was originally approved as a reasonable and prudent cost to consumers in 2018.
According to PSC, “The current proposed stipulation would deem that $7.293 billion “prudent” (a higher standard) and would add $200 million for unanticipated COVID related costs, $36 million for ad valorem taxes, and $33 million for construction monitoring costs.”
The agreement also included several cost-saving stipulations related to construction and completion, including:
- Construction return on equity to Georgia Power will be set to zero if Vogtle Unit 4 is not commercially operating by March 31, 2024, and will remain there until it begins commercial operations
- If performance is reduced, Georgia Power will have to prove it was not the result of poor engineering, construction, procurement, testing, or startup activities, or the power company would be required to provide credit back to customers for operation and maintenance, as well as costs of repairs
- Expansion of senior discounts to apply to all seniors living in a household that has a combined income of 200% or less of the federal poverty level, adjusted for household size, as well as individuals receiving social security disability income assistance or supplemental security income, customers who are participating in the federal Housing Choice Voucher Program or Section 8 housing. Anticipated cost shifts will be restricted to $1 per month per residential customer.
In a statement about the settlement, SELC said the agreement with Georgia Power will offset rate increases to consumers and “provide additional much-needed bill relief for seniors and lower-income Georgians.”
As a result of the negotiations, “Georgia Power agreed to a roughly 50% expansion of its energy efficiency programs or demand-side management savings target to .75% of annual retail sales starting in 2025,” SELC said.
The inclusion of discount expansions was hailed by SELC as well.
“Seniors in households with a combined income equal to or less than 200% of the federal poverty level, customers receiving Social Security Disability Income assistance or Supplemental Security Income, and customers who use HUD Section 8 will now qualify for this important bill-relief program which reduces the average monthly bill by $33.50,” SELC said in their statement.
An attorney for SELC said that while Georgians will be paying for the project for decades, the agreement would significantly lower construction costs that could otherwise pass to consumers.
“Georgia Power customers have each already paid nearly $100 a year for more than ten years before Vogtle Units 3 and 4 ever produced electricity. In late July, Vogtle’s third nuclear reactor began commercial operation more than seven years after the unit’s original completion date,” SELC said. “That milestone was one of three bill increases for Georgia Power customers in 2023, totaling more than $24 a month for the average residential customer.”
Responding to a Channel 2 Action News request for comment, Georgia Power issued the following statement about the proposed agreement.
“Throughout the Vogtle nuclear expansion project, all costs have been thoroughly evaluated through an open and transparent review process. We believe this stipulated agreement and request honors that work, acknowledges the perspectives of all parties involved and takes a balanced approach that recognizes the value of this long-term investment for the state and recognizes affordability needs for customers,” the company said.
They also released a document highlighting the prudence agreement’s points and how they’ll benefit the company.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
OTHER NEWS:
This browser does not support the video element.