Click here to view KSDK’s story.
KSDK-TV coverage of AmerenUE’s request for rate increase for nuclear power
Saturday, January 24th, 2009AmerenUE Feigns Nuclear Indecision
Friday, January 23rd, 2009This editorial is just a place holder. We haven’t decided yet whether to write about one of the biggest issues facing Missouri legislators this year.
Our colleague Tony Messenger did. In a column published Tuesday, Mr. Messenger wrote that executives from utility giant AmerenUE danced around the “gorilla in the room” when they briefed lawmakers on energy issues.
That gorilla would be a new nuclear reactor the utility applied to build in Callaway County. Strictly as an option, of course.
“No decision has yet been made,” utility lobbyist Matthew Forck insisted. It’s the same line utility executives have used for months.
We wouldn’t want to jump the gun. But if we did decide to write about the issue, we’d mention that AmerenUE filed an 8,000-page application to build the plant with the U.S. Nuclear Regulatory Commission last July. It expects the facility to cost at least $6 billion.
AmerenUE asked state utility regulators for a rate hike that includes between $5 million and $7 million a year to pay for the application. The company spent about $50 million on it last year.
Maybe it’s just us, but we wouldn’t spend $50 million and fill out an 8,000-page application unless we were pretty sure we were going ahead. Click here to read the entire St. Louis Post-Dispatch editorial.
Nuclear Plant Bill Worrisome for Consumers
Friday, January 23rd, 2009Missouri’s energy debate is about to go nuclear.
A state lawmaker filed a bill in the Legislature on Thursday that sets the stage for a battle between utility interests who want to build a new nuclear plant and consumer groups that are leery of the costs.
The action comes the day after AmerenUE chief executive Tom Voss visited key decision makers in the Capitol to lobby for the bill. Click here to read the entire St. Louis Post-Dispatch article which includes quotes from John Coffman, our lobbyist.
Former Enviro Lobbyist Sells Out
Friday, January 23rd, 2009Groups trying to pave the way for a second AmerenUE nuclear plant in Missouri have a new weapon in Jefferson City — a top lobbyist for environmentalists.
Irl L. Scissors, who previously represented a leading Missouri environmental and conservation alliance, last week announced in an e-mail to leaders of that group he was going to work to help undo the law that prohibits utilities from charging customers for power plants under construction. Click here to read the full St. Louis Post-Dispatch story.
GA Power Bill Introduced
Thursday, January 15th, 2009Ga. Power bill introduced Friday
by Tom Crawford
Sen. Don Balfour (R-Snellville) confirmed that he will introduce on Friday a bill that would allow Georgia Power Co. to start charging ratepayers six years in advance for the construction of two nuclear generation units at Plant Vogtle.
The Balfour bill is expected to be one of the most controversial measures debated this session, with environmentalists and consumer groups dead set against the “construction work in progress” (CWIP) proposal put forth by Georgia Power executives.
The $14.4 billion nuclear project would not result in electricity generation until 2016 or 2017. Georgia Power is asking the Public Service Commission for permission to start charging ratepayers for $1.6 billion in construction financing costs starting in 2011, at least six years before the reactors would be finished.
Balfour’s bill would authorize Georgia Power to charge the CWIP rate regardless of what the PSC decides to do on the company’s request.
Georgia Power contends that charging ratepayers for the nuclear units before they go into operation would eventually save ratepayers $300 million. Critics of the plan say the utility is trying to shift all the risk for the project from shareholders to ratepayers who may never benefit from six years of higher monthly power bills.
“If Kroger raised grocery prices because they wanted to build a new store, you can just go to Publix,” said environmental lobbyist Neill Herring. “Where else can Georgia Power customers buy power?”
“This is an abuse of power because Georgia Power can cut off your power unless you pay for something you are not even getting, may never get, don’t need, and for which Georgia Power cannot even tell you the ultimate cost,” Herring added. “Only arrogance can explain their seeking this kind of rate increase when everyone is hit so hard by this economy.”
Balfour contended that ratepayers, in the end, are going to bear the costs of the nuclear plants anyway, regardless of how early their rates are increased.
“The EMCs and MEAGs already can charge off this interest and principle – the only company that can’t is Georgia Power,” Balfour said. “The ratepayer is going to pay the cost of that plant.”
“Contrary to the assertion that recovery of financing costs during construction lowers risks to investors, it actually helps maintain quality credit ratings, thereby lowering interest payments to investors and keeping costs lower for customers,” said Ann Daiss, Georgia Power’s chief accounting officer.
The nuclear payment legislation is already causing nervousness among some legislators who don’t want to be blamed for sudden increases in their constituents’ monthly power bills.
“Why are legislators, who go before the voters every two years, being asked to vote for this when the PSC can take care of it?” asked a state senator.
© 2009 by Capitolimpact. com
