/PRNewswire/ -- A coalition of major manufacturers, agricultural organizations and other industrial energy consumers today cautioned the Senate to avoid legislating new natural gas demand in any energy or climate change bill, saying such an approach would be "misguided" given existing strong demand growth and looming regulatory and political uncertainty surrounding access to major supply sources.
In a letter to Senate Majority Leader Harry Reid, 67 industrial and agriculture energy consumers -- representing farm and food concerns and makers of chemicals, fertilizer, glass, paper and steel -- expressed concern about artificially creating power and transportation sector demand for natural gas through legislative incentives. Doing so, they said, would cause the type of fuel switching that has ripple effects through the economy.
Paul Cicio, president of the Industrial Energy Consumers of America (IECA), said legislating new demand would prompt increased price volatility and higher prices. Higher natural gas prices also mean higher electricity costs.
"The impact will be felt by all consumers, not just industrial users," Cicio said. "Farmers will pay more for fertilizer, natural gas to dry their crops and electricity to run their irrigation systems; homeowners will pay more to heat and cool their homes; and manufacturers would be confronted with greater competitiveness challenges which threaten jobs at home."
The coalition said gas demand has been steadily rising in the past decade without the incentives being contemplated in the Senate and in the absence of carbon caps, which will increasingly shift more power generators from coal to natural gas. The power sector's natural gas demand has grown by nearly 30% since 2001.
"The economic recovery and our energy security will be better served if U.S. energy policy ensures American manufacturing can continue to compete globally and keep its jobs here," said Peter Molinaro, Dow Chemical's vice president of federal and state government affairs. "Our economy needs a diverse base of price-sensitive natural gas consumers -- and a diverse energy supply -- in order to reduce price volatility in all energy sectors."
The letter urges the Senate to allow the market to set supply and demand for natural gas instead of picking 'winners' and 'losers' through legislation.
The coalition acknowledged there is great hope that the large shale gas reserves will materialize as recoverable supplies. "However, history has shown that unforeseen circumstances, including the potential for both federal and state regulations to be placed on shale drilling, can either slow its production, increase its costs or otherwise dramatically alter these types of future projections."
The industrial and agriculture consumers called for a coherent energy policy that balances gas demand with the economy's need for affordable supplies.
Signatories to the letter include: American Forest &Paper Association, Dow Chemical Company, Kimberly-Clark Corporation, Land O' Lakes, Steel Manufacturers Association and The Fertilizer Institute.
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Friday, July 23, 2010
GM First to Market Greenhouse Gas-Friendly Air Conditioning Refrigerant in U.S.
/PRNewswire/ -- General Motors Co. will introduce a new greenhouse gas-friendly air-conditioning refrigerant in 2013 Chevrolet, Buick, GMC and Cadillac models in the U.S. that keeps vehicle interiors as cool as today while reducing heat-trapping gases in the atmosphere by more than 99 percent.
The biggest benefit of the new refrigerant, (HFO-1234yf) supplied by Honeywell, is that it breaks down faster in the atmosphere than the refrigerant currently used (R-134a), On average, R-134a refrigerant has an atmospheric life of more than 13 years, giving it a global warming potential (GWP) of over 1,400.
By comparison, the new refrigerant lingers in the atmosphere for just 11 days and has a GWP of only 4, a 99.7 percent improvement. GWP is a value used to compare different greenhouse gases that trap heat in the atmosphere. The base measurement for GWP is relative to that of carbon dioxide (CO2).
The U.S. Environmental Protection Agency awards regulatory credit for the improved environmental performance of the new refrigerant, which helps GM meet the overall requirements of the EPA's new motor vehicle greenhouse gas regulations. The new regulation requires an overall 40 percent improvement in overall U.S. fleet average vehicle fuel economy by 2016. The use of HFO-1234yf will help GM vehicles significantly exceed its targets under the new regulations.
"GM's decision to adopt this new refrigerant is additional proof of our commitment to be on the forefront of green technologies that will keep our planet healthy for our children and grand-children," said Mike Robinson, GM vice president of Environment, Energy and Safety Policy. "It's not just about meeting regulatory requirements; it's about environmental leadership and GM plans to lead in developing new technologies that will take the vehicle out of the environmental debate."
Said Terrence Hahn, vice president and general manager for Honeywell Fluorine Products: "We're pleased that GM is taking the lead in choosing HFO-1234yf, a refrigerant that has a lower impact on global warming. This is another example of how Honeywell is developing innovative new environmental and energy-efficient solutions to meet our customers' current and future needs."
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The biggest benefit of the new refrigerant, (HFO-1234yf) supplied by Honeywell, is that it breaks down faster in the atmosphere than the refrigerant currently used (R-134a), On average, R-134a refrigerant has an atmospheric life of more than 13 years, giving it a global warming potential (GWP) of over 1,400.
By comparison, the new refrigerant lingers in the atmosphere for just 11 days and has a GWP of only 4, a 99.7 percent improvement. GWP is a value used to compare different greenhouse gases that trap heat in the atmosphere. The base measurement for GWP is relative to that of carbon dioxide (CO2).
The U.S. Environmental Protection Agency awards regulatory credit for the improved environmental performance of the new refrigerant, which helps GM meet the overall requirements of the EPA's new motor vehicle greenhouse gas regulations. The new regulation requires an overall 40 percent improvement in overall U.S. fleet average vehicle fuel economy by 2016. The use of HFO-1234yf will help GM vehicles significantly exceed its targets under the new regulations.
"GM's decision to adopt this new refrigerant is additional proof of our commitment to be on the forefront of green technologies that will keep our planet healthy for our children and grand-children," said Mike Robinson, GM vice president of Environment, Energy and Safety Policy. "It's not just about meeting regulatory requirements; it's about environmental leadership and GM plans to lead in developing new technologies that will take the vehicle out of the environmental debate."
Said Terrence Hahn, vice president and general manager for Honeywell Fluorine Products: "We're pleased that GM is taking the lead in choosing HFO-1234yf, a refrigerant that has a lower impact on global warming. This is another example of how Honeywell is developing innovative new environmental and energy-efficient solutions to meet our customers' current and future needs."
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Tuesday, July 20, 2010
IADC Applauds Senators' Leadership in Opposing Federal Drilling Moratorium
/PRNewswire/ -- The International Association of Drilling Contractors (IADC) applauds the leadership of three United States Senators: David Vitter (Louisiana), John Cornyn (Texas), and Roger Wicker (Mississippi), who are opposing the federal moratorium on offshore permitting and drilling activities announced on July 12 by Secretary of the Interior Ken Salazar. Last week the three Gulf Coast senators sponsored legislation (S. 3588) to lift the offshore drilling and permitting moratorium for companies that have complied with the new safety and inspection requirements issued by the Department of the Interior.
"The men and women whose livelihoods depend on the offshore oil and gas exploration and production industry in the Gulf of Mexico deeply appreciate the efforts of our legislators to lift the drilling moratorium," said IADC President Dr. Lee Hunt. "Industry representatives have communicated to the Interior Department and Congress our industry's strong commitment to rigorous requirements for well design, enhanced training, and adoption of safety case requirements for Mobile Offshore Drilling Units (MODUs). We are dismayed by the continued blanket suspension of deepwater drilling in the U.S. Gulf of Mexico. Lifting the moratorium is critical to tens of thousands of jobs in the deepwater industry and to the oil and gas service sector in the Gulf Coast region and throughout the country."
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"The men and women whose livelihoods depend on the offshore oil and gas exploration and production industry in the Gulf of Mexico deeply appreciate the efforts of our legislators to lift the drilling moratorium," said IADC President Dr. Lee Hunt. "Industry representatives have communicated to the Interior Department and Congress our industry's strong commitment to rigorous requirements for well design, enhanced training, and adoption of safety case requirements for Mobile Offshore Drilling Units (MODUs). We are dismayed by the continued blanket suspension of deepwater drilling in the U.S. Gulf of Mexico. Lifting the moratorium is critical to tens of thousands of jobs in the deepwater industry and to the oil and gas service sector in the Gulf Coast region and throughout the country."
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Friday, July 16, 2010
Congress Passes Law to End Secrecy in Oil, Gas, and Mining Industry
/PRNewswire/ -- International humanitarian organization Oxfam America commends the U.S. Congress for making disclosure of payments from oil and mining companies to governments around the world a legal requirement. Included as part of the Dodd-Frank financial reform legislation passed by the House and Senate, this historic measure will increase financial transparency in the oil, gas, and mining industry and help reduce the corruption, mismanagement, and conflict that are too often associated with natural resource extraction booms.
"Congress has made an unprecedented commitment to financial transparency and good governance in a sector that not only affects American wallets, but also some of the most vulnerable communities around the world," said Raymond C. Offenheiser, president of Oxfam America. "Secrecy of oil, gas and mining company payments to governments fosters government corruption and violent conflict in resource-rich countries that are home to more than half of the world's poorest people. Instability in these regions poses a long-term threat to national security, foreign policy, and economic interests in the United States."
The language included in the financial services reform measure was based on the Energy Security through Transparency Act (S. 1700), a bipartisan Senate bill championed by Senators Lugar (R-IN) and Cardin (D-MD). The new law creates a low-cost, uniform transparency method for oil, gas, and mining companies registered with the US Securities and Exchange Commission (SEC) and covers more than 90 percent of internationally operating oil companies and many of the top international mining companies. Companies will be required to publicly disclose payments for the extraction of oil, gas, and minerals on a country-by-country and project basis as part of financial statements that are already required by the SEC. This not only includes American companies but also many foreign companies, such as Shell and BP, as well as companies from emerging markets such as China, India, Brazil, and Russia.
"This provision is a critical part of the increased transparency and corporate responsibility that we are striving to achieve in the financial industry. Given the catastrophic events in the Gulf of Mexico, oil companies, in particular, should well understand that secrecy fosters instability, corruption and greater risk," said Senator Cardin. "We now have the tools to help people in resource-rich countries hold their leaders accountable for the money made from their oil, gas and minerals."
"Too often, oil money intended for a nation's poor ends up lining the pockets of the rich or is squandered on showcase projects instead of productive investments," said Senator Lugar when he spoke in favor of the measure when it was offered as an amendment to the Senate financial reform bill in late May. (The Cardin-Lugar amendment was co-sponsored by Senators Durbin (D-IL), Schumer (D-NY), Feingold (D-WI), Merkley (D-OR), and Johnson (D-SD).) He added: "This 'resource curse' affects us as well as producing countries. It exacerbates global poverty which can be a seedbed for terrorism, it empowers autocrats and dictators, and it can crimp world petroleum supplies by breeding instability."
"We applaud Senators Cardin and Lugar for spearheading this effort in the Senate that will both level the playing field for oil, gas, and mining companies and help citizens hold their governments accountable for using revenues for economic development and poverty reduction. We also thank Senator Leahy for offering the measure during the House-Senate conference process and House Financial Services Chairman Barney Frank for his early leadership on transparency in the oil and mining industries and for his support for this measure that demonstrates U.S. commitment to transparent business practices and accountable governance," said Offenheiser.
"Passing this law sets up an international standard for the public disclosure of natural resource revenue information, but its effectiveness will be determined by strict implementation by lawmakers and development of effective implementing regulations by the SEC. Companies should heed the call for transparency so citizens of resource-rich countries can begin to use this information to hold their governments accountable for using revenues to address essential services like healthcare, education, and job creation."
Oxfam America calls on the SEC to quickly undertake its rule-making process to implement this important measure as Congress intended. "Oxfam America and its allies in the Publish What You Pay campaign will be closely following the rule-making process to ensure this groundbreaking disclosure measure is quickly put in place," said Offenheiser.
Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger, and injustice. Together with individuals and local groups in more than 100 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice. Oxfam America is an affiliate of the international confederation Oxfam.
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"Congress has made an unprecedented commitment to financial transparency and good governance in a sector that not only affects American wallets, but also some of the most vulnerable communities around the world," said Raymond C. Offenheiser, president of Oxfam America. "Secrecy of oil, gas and mining company payments to governments fosters government corruption and violent conflict in resource-rich countries that are home to more than half of the world's poorest people. Instability in these regions poses a long-term threat to national security, foreign policy, and economic interests in the United States."
The language included in the financial services reform measure was based on the Energy Security through Transparency Act (S. 1700), a bipartisan Senate bill championed by Senators Lugar (R-IN) and Cardin (D-MD). The new law creates a low-cost, uniform transparency method for oil, gas, and mining companies registered with the US Securities and Exchange Commission (SEC) and covers more than 90 percent of internationally operating oil companies and many of the top international mining companies. Companies will be required to publicly disclose payments for the extraction of oil, gas, and minerals on a country-by-country and project basis as part of financial statements that are already required by the SEC. This not only includes American companies but also many foreign companies, such as Shell and BP, as well as companies from emerging markets such as China, India, Brazil, and Russia.
"This provision is a critical part of the increased transparency and corporate responsibility that we are striving to achieve in the financial industry. Given the catastrophic events in the Gulf of Mexico, oil companies, in particular, should well understand that secrecy fosters instability, corruption and greater risk," said Senator Cardin. "We now have the tools to help people in resource-rich countries hold their leaders accountable for the money made from their oil, gas and minerals."
"Too often, oil money intended for a nation's poor ends up lining the pockets of the rich or is squandered on showcase projects instead of productive investments," said Senator Lugar when he spoke in favor of the measure when it was offered as an amendment to the Senate financial reform bill in late May. (The Cardin-Lugar amendment was co-sponsored by Senators Durbin (D-IL), Schumer (D-NY), Feingold (D-WI), Merkley (D-OR), and Johnson (D-SD).) He added: "This 'resource curse' affects us as well as producing countries. It exacerbates global poverty which can be a seedbed for terrorism, it empowers autocrats and dictators, and it can crimp world petroleum supplies by breeding instability."
"We applaud Senators Cardin and Lugar for spearheading this effort in the Senate that will both level the playing field for oil, gas, and mining companies and help citizens hold their governments accountable for using revenues for economic development and poverty reduction. We also thank Senator Leahy for offering the measure during the House-Senate conference process and House Financial Services Chairman Barney Frank for his early leadership on transparency in the oil and mining industries and for his support for this measure that demonstrates U.S. commitment to transparent business practices and accountable governance," said Offenheiser.
"Passing this law sets up an international standard for the public disclosure of natural resource revenue information, but its effectiveness will be determined by strict implementation by lawmakers and development of effective implementing regulations by the SEC. Companies should heed the call for transparency so citizens of resource-rich countries can begin to use this information to hold their governments accountable for using revenues to address essential services like healthcare, education, and job creation."
Oxfam America calls on the SEC to quickly undertake its rule-making process to implement this important measure as Congress intended. "Oxfam America and its allies in the Publish What You Pay campaign will be closely following the rule-making process to ensure this groundbreaking disclosure measure is quickly put in place," said Offenheiser.
Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger, and injustice. Together with individuals and local groups in more than 100 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice. Oxfam America is an affiliate of the international confederation Oxfam.
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Tuesday, July 13, 2010
ArcLight Acquires 640-MW Georgia Power Plant with $98 Million in Financing Led by GE Energy Financial Services
-(BUSINESS WIRE)--ArcLight Capital Partners, LLC, through its wholly-owned affiliate AL Sandersville Holdings, LLC, has acquired a 640-megawatt generation facility located in Sandersville, Georgia from KGen Power Corporation for $130 million. GE Energy Financial Services, a unit of GE (NYSE: GE), closed financing as the lead lender of the $98 million in senior secured credit facilities partially financing the acquisition.
Built in 2002, using eight 80-megawatt GE simple-cycle gas turbines, the Sandersville plant supplies power into the southeastern power market, particularly Georgia, during periods of peak demand or supply volatility. Sandersville is strategically located near four other facilities in Georgia owned by ArcLight through its affiliate Mackinaw Power, LLC, which have an aggregate capacity of 1,887 megawatts. Combined with Sandersville, this portfolio represents a more than 2,500-megawatt strategic platform making it the second largest independent power producer in the state, with the capacity to meet the peak demand of a city with a population of 450,000.
“This asset is an important addition to our southeast gas power generation facility portfolio that is well positioned to benefit from the current macroeconomic recovery and pending energy and carbon legislation, as well as the unconventional gas boom in the US," said Dan Revers, Managing Partner of ArcLight.
GE Energy Financial Services’ affiliate, GE Capital Markets, Inc., acted as sole lead arranger. Siemens Financial Services, Inc. joined GE Energy Financial Services in providing the $98 million in credit facilities comprised of a $78 million term loan and a $20 million letter of credit. Additional financial details of the transaction were not disclosed.
“This transaction demonstrates GE Energy Financial Services’ deep expertise in power markets across the United States to provide debt financing for customers throughout the energy sector,” said Matt O’Connor, Managing Director, Financial Institutions Group at GE Energy Financial Services. “We applied our energy expertise to assess the southeastern power market which allowed us to structure and lead arrange this financing in a way that helps ArcLight grow and continue meeting power demand in the region.”
With approximately 50 dedicated professionals focused on debt products and services, GE Energy Financial Services provides structured, project and acquisition debt, revolving credit facilities, and corporate loans. The GE unit has a debt portfolio of nearly $7 billion, spanning power, oilfield services, pipelines, gas storage, refining, exploration and production, mining and fuel distribution. GE Capital Markets, Inc. provides arranging and syndication for many of these facilities.
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Built in 2002, using eight 80-megawatt GE simple-cycle gas turbines, the Sandersville plant supplies power into the southeastern power market, particularly Georgia, during periods of peak demand or supply volatility. Sandersville is strategically located near four other facilities in Georgia owned by ArcLight through its affiliate Mackinaw Power, LLC, which have an aggregate capacity of 1,887 megawatts. Combined with Sandersville, this portfolio represents a more than 2,500-megawatt strategic platform making it the second largest independent power producer in the state, with the capacity to meet the peak demand of a city with a population of 450,000.
“This asset is an important addition to our southeast gas power generation facility portfolio that is well positioned to benefit from the current macroeconomic recovery and pending energy and carbon legislation, as well as the unconventional gas boom in the US," said Dan Revers, Managing Partner of ArcLight.
GE Energy Financial Services’ affiliate, GE Capital Markets, Inc., acted as sole lead arranger. Siemens Financial Services, Inc. joined GE Energy Financial Services in providing the $98 million in credit facilities comprised of a $78 million term loan and a $20 million letter of credit. Additional financial details of the transaction were not disclosed.
“This transaction demonstrates GE Energy Financial Services’ deep expertise in power markets across the United States to provide debt financing for customers throughout the energy sector,” said Matt O’Connor, Managing Director, Financial Institutions Group at GE Energy Financial Services. “We applied our energy expertise to assess the southeastern power market which allowed us to structure and lead arrange this financing in a way that helps ArcLight grow and continue meeting power demand in the region.”
With approximately 50 dedicated professionals focused on debt products and services, GE Energy Financial Services provides structured, project and acquisition debt, revolving credit facilities, and corporate loans. The GE unit has a debt portfolio of nearly $7 billion, spanning power, oilfield services, pipelines, gas storage, refining, exploration and production, mining and fuel distribution. GE Capital Markets, Inc. provides arranging and syndication for many of these facilities.
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Wednesday, July 7, 2010
Electric Utilities Across the State Offer $500 Reward for Identification of Copper Thieves
PRNewswire -- Georgia's electric utilities are offering $500 for information leading to the arrest and conviction of individuals involved in the theft of copper and other metals from their property.
Copper thefts from substations, utility poles and lines continue to be a growing problem for the industry. These thefts threaten the reliability of the electric system. In addition, damaged lines pose a danger of electrocution to anyone in the area, including utility workers.
Any information could be vital to the identification of thieves. This problem affects many businesses throughout the state, and the utilities are aggressively working with law enforcement agencies and scrap recyclers to apprehend the perpetrators. This reward is one tool to encourage the public's assistance.
Details such as a tag number, a physical description of a person or a car could be especially helpful. Anyone who observes suspicious activity around an electric substation or other utility facility is asked to contact the statewide copper theft hotline at 1-877-732-8717. If a theft is in progress, the witness should notify 911 first, then contact the hotline.
The $500 reward was first announced in February of 2009. Today the state's electric utilities continue their commitment to prosecute thieves but depend on the public to provide information which could lead to the arrest of these criminals.
The reward will be paid to anyone who furnishes information that leads directly to the arrest and conviction of someone involved in metals theft from a utility property in Georgia. The $500 award is being offered by Dalton Utilities, Electric Cities of Georgia, 42 electric membership cooperatives (EMCs), Georgia EMC, Georgia Power, Georgia Transmission Corp. and Municipal Electric Authority of Georgia.
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Copper thefts from substations, utility poles and lines continue to be a growing problem for the industry. These thefts threaten the reliability of the electric system. In addition, damaged lines pose a danger of electrocution to anyone in the area, including utility workers.
Any information could be vital to the identification of thieves. This problem affects many businesses throughout the state, and the utilities are aggressively working with law enforcement agencies and scrap recyclers to apprehend the perpetrators. This reward is one tool to encourage the public's assistance.
Details such as a tag number, a physical description of a person or a car could be especially helpful. Anyone who observes suspicious activity around an electric substation or other utility facility is asked to contact the statewide copper theft hotline at 1-877-732-8717. If a theft is in progress, the witness should notify 911 first, then contact the hotline.
The $500 reward was first announced in February of 2009. Today the state's electric utilities continue their commitment to prosecute thieves but depend on the public to provide information which could lead to the arrest of these criminals.
The reward will be paid to anyone who furnishes information that leads directly to the arrest and conviction of someone involved in metals theft from a utility property in Georgia. The $500 award is being offered by Dalton Utilities, Electric Cities of Georgia, 42 electric membership cooperatives (EMCs), Georgia EMC, Georgia Power, Georgia Transmission Corp. and Municipal Electric Authority of Georgia.
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Sunday, July 4, 2010
Georgia Power Seeks Cost Recovery of Investments in Cleaner Generation, Smart Grid and Environmental Controls
PRNewswire -- Georgia Power on July 1 asked the Georgia Public Service Commission (PSC) for permission to increase its base rates approximately $615 million, or 8.2 percent of the company's retail rates, to recover the costs of investments in cleaner generation sources, power lines, smart grid technologies, environmental controls and energy efficiency programs to meet current and future customer demand.
The proposed change in rates would be effective Jan. 1, 2011.
"Georgia is the fourth-fastest growing state in the nation, and we have invested billions of dollars to serve that growth," said Ann Daiss, Georgia Power vice president, comptroller and chief accounting officer. "We must continue to invest in our infrastructure to maintain the reliable, affordable electricity and high level of customer satisfaction that our customers deserve and expect."
If the request is approved, the typical residential customer using 1,000 kilowatt-hours per month would see an increase of about 10.1 percent, or $10.88. For business customers, the average increase would range from about 7.7 percent to 10.3 percent.
Additional increases, if approved, would become effective in subsequent years through existing and newly proposed cost-recovery mechanisms outlined in the filing. The company currently estimates increases for new generation, environmental controls and demand-side management programs are expected to increase the typical residential customer bill per month by about $5.38 in 2012 and $1.42 in 2013, respectively. These estimates will be updated through future filings with the PSC.
As of December 2009, the company's rates were approximately 14 percent below the national average and 7 percent below the Southeast average. Even with this proposed increase, Georgia Power's rates should remain below the national average, and its customers will be paying lower base rates today than they were in 1991 on an inflation-adjusted basis.
Since the last base-rate case in 2007, Georgia Power has invested almost $5 billion:
-- In reliability and Smart Grid - To ensure a stable and efficient grid,
and reliable service for customers.
-- In cleaner natural gas generation - To ensure adequate and cleaner
energy when customers need it. Plant McDonough Units 4, 5 and 6 are
scheduled to begin serving customers in January 2012, May 2012 and
January 2013.
-- For a cleaner environment - To continue to reduce emissions and meet
federal and state environmental standards. By 2015, the company
anticipates reducing nitrogen oxide emissions by 85 percent and sulfur
dioxide emissions by 95 percent from 1990 levels, and achieving
significant reductions in other emissions.
Georgia Power also is proposing changes to its current accounting order with the PSC that would:
-- Replace large rate changes with smaller, periodic adjustments.
-- Allow customers to benefit from cost controls and proactive management
on a timelier basis.
-- Allow customers to share in unexpected economic and/or weather
impacts.
-- Support a more timely process for review of both past and projected
costs than the current lengthy and complex filings.
-- Help maintain the financial stability of the company and keep
financing costs low.
In addition, the company's plan features new energy-efficiency programs that will help customers control their energy use and save money. It also includes a new electric vehicle rate that encourages customers to charge at lower-cost, off-peak times and pay less for electricity.
The PSC will hold public hearings October through December. A final decision is expected Dec. 21, 2010, with new rates going into effect Jan. 1, 2011.
Georgia Power is the largest subsidiary of Southern Company, one of the nation's largest generators of electricity. The company is an investor-owned, tax-paying utility that serves 2.3 million customers and has operations in all but four of Georgia's 159 counties.
Cautionary Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding Georgia Power's filing with the Georgia PSC to increase retail base rates, implement new base rate tariffs, and modify existing base rate tariffs. There are various factors that could cause actual results to differ materially from those suggested by the forward-looking statements; accordingly, there can be no assurance that such indicated results will be realized. These factors include: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery and the Georgia PSC's review of Georgia Power's 2010 base rate case filing (the final outcome of which may differ materially from Georgia Power's proposal); the impact of recent and future federal and state regulatory change, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, implementation of the Energy Policy Act of 2005, environmental laws including regulation of water quality, coal combustion byproducts, and emissions of sulfur, nitrogen, carbon, soot, particulate matter, hazardous air pollutants, including mercury, and other substances, and also changes in tax and other laws and regulations to which Georgia Power is subject, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings or inquiries, including the pending Environmental Protection Agency civil actions against Georgia Power, Federal Energy Regulatory Commission matters, and Internal Revenue Service audits; the effects, extent and timing of the entry of additional competition in the markets in which Georgia Power operates; variations in the demand for electricity, including those related to weather, the general economy and recovery from the recent recession, population and business growth (and declines), and the effect of energy conservation measures; available sources and costs of fuel; effects of inflation; ability to control costs and avoid cost overruns during the development and construction of facilities; investment performance of Georgia Power's employee benefit plans and nuclear decommissioning trusts; advances in technology; potential Department of Energy loan guarantees related to the potential Plant Vogtle expansion; internal restructuring or other restructuring options that may be pursued; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with wholesale customers; the direct or indirect effect on the business of Georgia Power resulting from terrorist incidents and the threat of terrorist incidents; interest rate fluctuations and financial market conditions and the results of financing efforts, and the credit ratings of Georgia Power; the ability of Georgia Power to obtain additional generating capacity at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, pandemic health events, such as influenzas, or other similar occurrences; the direct or indirect effects on the business of Georgia Power resulting from incidents affecting the U.S. electric grid or operation of generating resources; the effect of accounting pronouncements issued periodically by standard setting bodies; and other factors discussed in reports filed by Georgia Power from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended Dec. 31, 2009. Georgia Power expressly disclaims any obligation to update these forward looking statements.
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The proposed change in rates would be effective Jan. 1, 2011.
"Georgia is the fourth-fastest growing state in the nation, and we have invested billions of dollars to serve that growth," said Ann Daiss, Georgia Power vice president, comptroller and chief accounting officer. "We must continue to invest in our infrastructure to maintain the reliable, affordable electricity and high level of customer satisfaction that our customers deserve and expect."
If the request is approved, the typical residential customer using 1,000 kilowatt-hours per month would see an increase of about 10.1 percent, or $10.88. For business customers, the average increase would range from about 7.7 percent to 10.3 percent.
Additional increases, if approved, would become effective in subsequent years through existing and newly proposed cost-recovery mechanisms outlined in the filing. The company currently estimates increases for new generation, environmental controls and demand-side management programs are expected to increase the typical residential customer bill per month by about $5.38 in 2012 and $1.42 in 2013, respectively. These estimates will be updated through future filings with the PSC.
As of December 2009, the company's rates were approximately 14 percent below the national average and 7 percent below the Southeast average. Even with this proposed increase, Georgia Power's rates should remain below the national average, and its customers will be paying lower base rates today than they were in 1991 on an inflation-adjusted basis.
Since the last base-rate case in 2007, Georgia Power has invested almost $5 billion:
-- In reliability and Smart Grid - To ensure a stable and efficient grid,
and reliable service for customers.
-- In cleaner natural gas generation - To ensure adequate and cleaner
energy when customers need it. Plant McDonough Units 4, 5 and 6 are
scheduled to begin serving customers in January 2012, May 2012 and
January 2013.
-- For a cleaner environment - To continue to reduce emissions and meet
federal and state environmental standards. By 2015, the company
anticipates reducing nitrogen oxide emissions by 85 percent and sulfur
dioxide emissions by 95 percent from 1990 levels, and achieving
significant reductions in other emissions.
Georgia Power also is proposing changes to its current accounting order with the PSC that would:
-- Replace large rate changes with smaller, periodic adjustments.
-- Allow customers to benefit from cost controls and proactive management
on a timelier basis.
-- Allow customers to share in unexpected economic and/or weather
impacts.
-- Support a more timely process for review of both past and projected
costs than the current lengthy and complex filings.
-- Help maintain the financial stability of the company and keep
financing costs low.
In addition, the company's plan features new energy-efficiency programs that will help customers control their energy use and save money. It also includes a new electric vehicle rate that encourages customers to charge at lower-cost, off-peak times and pay less for electricity.
The PSC will hold public hearings October through December. A final decision is expected Dec. 21, 2010, with new rates going into effect Jan. 1, 2011.
Georgia Power is the largest subsidiary of Southern Company, one of the nation's largest generators of electricity. The company is an investor-owned, tax-paying utility that serves 2.3 million customers and has operations in all but four of Georgia's 159 counties.
Cautionary Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding Georgia Power's filing with the Georgia PSC to increase retail base rates, implement new base rate tariffs, and modify existing base rate tariffs. There are various factors that could cause actual results to differ materially from those suggested by the forward-looking statements; accordingly, there can be no assurance that such indicated results will be realized. These factors include: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery and the Georgia PSC's review of Georgia Power's 2010 base rate case filing (the final outcome of which may differ materially from Georgia Power's proposal); the impact of recent and future federal and state regulatory change, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, implementation of the Energy Policy Act of 2005, environmental laws including regulation of water quality, coal combustion byproducts, and emissions of sulfur, nitrogen, carbon, soot, particulate matter, hazardous air pollutants, including mercury, and other substances, and also changes in tax and other laws and regulations to which Georgia Power is subject, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings or inquiries, including the pending Environmental Protection Agency civil actions against Georgia Power, Federal Energy Regulatory Commission matters, and Internal Revenue Service audits; the effects, extent and timing of the entry of additional competition in the markets in which Georgia Power operates; variations in the demand for electricity, including those related to weather, the general economy and recovery from the recent recession, population and business growth (and declines), and the effect of energy conservation measures; available sources and costs of fuel; effects of inflation; ability to control costs and avoid cost overruns during the development and construction of facilities; investment performance of Georgia Power's employee benefit plans and nuclear decommissioning trusts; advances in technology; potential Department of Energy loan guarantees related to the potential Plant Vogtle expansion; internal restructuring or other restructuring options that may be pursued; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with wholesale customers; the direct or indirect effect on the business of Georgia Power resulting from terrorist incidents and the threat of terrorist incidents; interest rate fluctuations and financial market conditions and the results of financing efforts, and the credit ratings of Georgia Power; the ability of Georgia Power to obtain additional generating capacity at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, pandemic health events, such as influenzas, or other similar occurrences; the direct or indirect effects on the business of Georgia Power resulting from incidents affecting the U.S. electric grid or operation of generating resources; the effect of accounting pronouncements issued periodically by standard setting bodies; and other factors discussed in reports filed by Georgia Power from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended Dec. 31, 2009. Georgia Power expressly disclaims any obligation to update these forward looking statements.
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Wednesday, June 23, 2010
Europe's ETS Failures Forecast Problems For US Cap-And-Trade
/PRNewswire/ -- Today, as the Senate contemplates whether now is the time to act on climate proposals, the U.S. Climate Task Force released a new analysis of how Europe's cap-and-trade program has worked in practice. The report, "Europe's Emissions Trading System," by Harvard economist and international trade expert Richard Cooper, details how this approach has produced substantial volatility in the price of carbon, proven to be vulnerable to significant abuses, and has failed to spur any meaningful reductions in greenhouse gas emissions.
In order for a climate program to achieve significant, long-term effects, Dr. Cooper notes, "a steady, persistent price signal should be sent to all decision-making agents that they should reduce CO2 emissions at all times." Such a signal can be achieved through a revenue-neutral, carbon fee or tax.
"Dr. Cooper's in-depth analysis supports what many long speculated - carbon trading schemes are costly and ineffective," adds Dr. Elaine Kamarck, former senior policy advisor to Vice President Al Gore and current CTF Co-chair. "These failings may explain why a 2009 Hart Research survey found that only two percent of US voters hold very positive view of cap and trade - the system at the core of the current Senate bill. Using the trials and errors of Europe's ETS as guideposts, Washington lawmakers can make a much needed course correction on America's climate policy."
CTF Chair Dr. Robert Shapiro, former U.S. Under Secretary of Commerce and senior advisor to Bill Clinton notes, "the myriad problems inherent in Europe's ETS will only be exacerbated in the US. While permit prices fluctuated from 30 Euros at its height to zero Euros at its five year low, the EU reduced GHG emissions by a mere two percent. If the US Congress truly aims to pass effective, long-term climate legislation - as it must -- a carbon-based tax of the type that been highly successful in Scandinanvia is the only sensible course."
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In order for a climate program to achieve significant, long-term effects, Dr. Cooper notes, "a steady, persistent price signal should be sent to all decision-making agents that they should reduce CO2 emissions at all times." Such a signal can be achieved through a revenue-neutral, carbon fee or tax.
"Dr. Cooper's in-depth analysis supports what many long speculated - carbon trading schemes are costly and ineffective," adds Dr. Elaine Kamarck, former senior policy advisor to Vice President Al Gore and current CTF Co-chair. "These failings may explain why a 2009 Hart Research survey found that only two percent of US voters hold very positive view of cap and trade - the system at the core of the current Senate bill. Using the trials and errors of Europe's ETS as guideposts, Washington lawmakers can make a much needed course correction on America's climate policy."
CTF Chair Dr. Robert Shapiro, former U.S. Under Secretary of Commerce and senior advisor to Bill Clinton notes, "the myriad problems inherent in Europe's ETS will only be exacerbated in the US. While permit prices fluctuated from 30 Euros at its height to zero Euros at its five year low, the EU reduced GHG emissions by a mere two percent. If the US Congress truly aims to pass effective, long-term climate legislation - as it must -- a carbon-based tax of the type that been highly successful in Scandinanvia is the only sensible course."
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Monday, June 21, 2010
Southern Company, DOE Agree to Conditional Nuclear Loan Guarantee Terms
PRNewswire -- Southern Company Chairman, President and CEO David M. Ratcliffe on June 18 announced that the company's Georgia Power subsidiary has reached an agreement with the U.S. Department of Energy (DOE) to accept terms for a conditional commitment for loan guarantees.
"This will provide Georgia Power customers significant savings," said Georgia Power President and CEO Mike Garrett.
President Obama and DOE Secretary Steven Chu announced the award of the conditional loan guarantees to Georgia Power on February 16.
"This is another step forward on the road to nuclear power playing a prominent role in America's energy future," said Ratcliffe. "Nuclear energy is vital in any effort to make meaningful reductions in greenhouse gas emissions and meet this nation's rising demand for electricity. This conditional commitment is an endorsement of the company's performance as a safe, efficient nuclear operator with strong financial integrity."
The new units will be located at Plant Vogtle near Waynesboro, Ga., where the company already owns and operates two nuclear units. The conditional commitment is for loan guarantees that would apply to future borrowings related to the construction of Vogtle units 3 and 4.
Total guaranteed borrowings would not exceed 70 percent of the company's eligible projected costs, or approximately $3.4 billion, and are expected to be funded by the Federal Financing Bank. Any guaranteed borrowings would be full recourse to Georgia Power and secured by a first priority lien on the company's 45.7 percent ownership interest in the two new units.
Final approval and issuance of the loan guarantees are subject to receipt of the Combined Operating License from the U.S. Nuclear Regulatory Commission (NRC), completion of final agreements, the receipt of any other required regulatory approvals and satisfaction of other conditions. The company received an early site permit and limited work authorization from the NRC for the two additional units in 2009, and site work has begun.
The additions of units 3 and 4 are expected to produce approximately 3,500 jobs during construction and 800 permanent jobs once the units begin operation.
Along with Georgia Power's existing portion of the two 1,100-megawatt reactors, the remaining ownership is split among Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia and Dalton Utilities. Georgia Power's share of the project cost is currently projected at approximately $6.1 billion, which includes approximately $1.7 billion of financing costs to be collected during construction.
The DOE loan guarantees are expected to save Georgia Power's customers millions in interest costs annually over the expected life of any guaranteed borrowings, based on preliminary estimates. The actual amount of the interest savings will depend upon the final terms and the timing of the specific borrowings and cannot be determined at this time.
Units 3 and 4 are expected to begin commercial operation in 2016 and 2017, respectively. Southern Nuclear, a subsidiary of Southern Company, will oversee the construction as well as operate the two new units for Georgia Power and the other owners. Southern Nuclear currently operates Plant Vogtle's two existing nuclear power units as well as Georgia Power's Plant Hatch nuclear facility near Baxley, Ga., and Alabama Power's Plant Farley nuclear facility near Dothan, Ala.
Georgia Power is the largest subsidiary of Southern Company. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia's 159 counties.
With 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE:SO) is the premier energy company serving the Southeast. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices below the national average. Southern Company is consistently listed among the top U.S. electric service providers in customer satisfaction by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.
Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the conditional commitment and DOE loan guarantees, estimated cost savings from DOE loan guarantees, and projected costs of construction and in service dates for Vogtle units 3 and 4. Southern Company and Georgia Power caution that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company and Georgia Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in the Annual Reports on Form 10-K of Southern Company and Georgia Power for the year ended December 31, 2009, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: timely receipt of necessary regulatory approvals related to the Plant Vogtle expansion, including Georgia Public Service Commission and NRC approvals; interest rate fluctuations and financial market conditions, including the credit ratings of Southern Company and Georgia Power; satisfaction of all conditions to the final issuance and approval of DOE loan guarantees, including negotiation of final agreements, continuing due diligence by the DOE and receipt of any required regulatory approvals; and the ability to control costs and avoid delays in the construction of Plant Vogtle units 3 and 4, including risks related to shortages and inconsistent quality of equipment, materials and labor, work stoppages, contractor or supplier non-performance under construction or other agreements, adverse weather conditions, unforeseen engineering problems, changes in project design or scope, environmental and geological conditions, and unanticipated cost increases. Southern Company and Georgia Power expressly disclaim any obligation to update any forward-looking information.
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"This will provide Georgia Power customers significant savings," said Georgia Power President and CEO Mike Garrett.
President Obama and DOE Secretary Steven Chu announced the award of the conditional loan guarantees to Georgia Power on February 16.
"This is another step forward on the road to nuclear power playing a prominent role in America's energy future," said Ratcliffe. "Nuclear energy is vital in any effort to make meaningful reductions in greenhouse gas emissions and meet this nation's rising demand for electricity. This conditional commitment is an endorsement of the company's performance as a safe, efficient nuclear operator with strong financial integrity."
The new units will be located at Plant Vogtle near Waynesboro, Ga., where the company already owns and operates two nuclear units. The conditional commitment is for loan guarantees that would apply to future borrowings related to the construction of Vogtle units 3 and 4.
Total guaranteed borrowings would not exceed 70 percent of the company's eligible projected costs, or approximately $3.4 billion, and are expected to be funded by the Federal Financing Bank. Any guaranteed borrowings would be full recourse to Georgia Power and secured by a first priority lien on the company's 45.7 percent ownership interest in the two new units.
Final approval and issuance of the loan guarantees are subject to receipt of the Combined Operating License from the U.S. Nuclear Regulatory Commission (NRC), completion of final agreements, the receipt of any other required regulatory approvals and satisfaction of other conditions. The company received an early site permit and limited work authorization from the NRC for the two additional units in 2009, and site work has begun.
The additions of units 3 and 4 are expected to produce approximately 3,500 jobs during construction and 800 permanent jobs once the units begin operation.
Along with Georgia Power's existing portion of the two 1,100-megawatt reactors, the remaining ownership is split among Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia and Dalton Utilities. Georgia Power's share of the project cost is currently projected at approximately $6.1 billion, which includes approximately $1.7 billion of financing costs to be collected during construction.
The DOE loan guarantees are expected to save Georgia Power's customers millions in interest costs annually over the expected life of any guaranteed borrowings, based on preliminary estimates. The actual amount of the interest savings will depend upon the final terms and the timing of the specific borrowings and cannot be determined at this time.
Units 3 and 4 are expected to begin commercial operation in 2016 and 2017, respectively. Southern Nuclear, a subsidiary of Southern Company, will oversee the construction as well as operate the two new units for Georgia Power and the other owners. Southern Nuclear currently operates Plant Vogtle's two existing nuclear power units as well as Georgia Power's Plant Hatch nuclear facility near Baxley, Ga., and Alabama Power's Plant Farley nuclear facility near Dothan, Ala.
Georgia Power is the largest subsidiary of Southern Company. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia's 159 counties.
With 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE:SO) is the premier energy company serving the Southeast. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices below the national average. Southern Company is consistently listed among the top U.S. electric service providers in customer satisfaction by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.
Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the conditional commitment and DOE loan guarantees, estimated cost savings from DOE loan guarantees, and projected costs of construction and in service dates for Vogtle units 3 and 4. Southern Company and Georgia Power caution that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company and Georgia Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in the Annual Reports on Form 10-K of Southern Company and Georgia Power for the year ended December 31, 2009, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: timely receipt of necessary regulatory approvals related to the Plant Vogtle expansion, including Georgia Public Service Commission and NRC approvals; interest rate fluctuations and financial market conditions, including the credit ratings of Southern Company and Georgia Power; satisfaction of all conditions to the final issuance and approval of DOE loan guarantees, including negotiation of final agreements, continuing due diligence by the DOE and receipt of any required regulatory approvals; and the ability to control costs and avoid delays in the construction of Plant Vogtle units 3 and 4, including risks related to shortages and inconsistent quality of equipment, materials and labor, work stoppages, contractor or supplier non-performance under construction or other agreements, adverse weather conditions, unforeseen engineering problems, changes in project design or scope, environmental and geological conditions, and unanticipated cost increases. Southern Company and Georgia Power expressly disclaim any obligation to update any forward-looking information.
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Thursday, June 17, 2010
Friends of the Earth: Billions of Dollars in Tax Breaks for Each New Reactor Under Kerry-Lieberman Wipe Out Risk for Utilities Already Benefiting From Massive Loan Guarantees
/USNewswire/ -- The nuclear industry could end up facing no risk under massive tax break subsidies in the Kerry-Lieberman climate bill, according to an important new analysis conducted for Friends of the Earth by the research organization Earth Track. These tax breaks totaling $9.7 billion to $57.3 billion (depending on the type and number of reactors) would come on top of the Kerry-Lieberman measure's lucrative $35.5 billion addition to the more than $22.5 billion in loan guarantees already slated for nuclear power.
Friends of the Earth President Erich Pica said: "Doling out an additional $1.3-$3 billion in tax breaks per new reactor means the industry would be at the table playing almost entirely with taxpayer money. Industry will have little to lose when a reactor goes belly up. While taxpayers are bankrolling the industry's nuclear gamble they would share in none of the reactor's financial returns. In fact, all taxpayers will receive if the reactors are built is responsibility for disposing of the waste. By contrast, investors stand to make billions with no risk should their reactor gambit goes belly up and enter bankruptcy."
Earth Track Founder Doug Koplow said: "These substantial tax breaks for new reactors greatly impede market access for competing energy sources and worsen the already substantial risks to taxpayers from a nuclear build-out. As has clearly been shown in U.S. mortgage markets, the likelihood of bad financial decisions rises sharply if only other people's capital is at risk. Kerry-Lieberman's nuclear tax breaks do just this by replacing investor equity with taxpayer money, and allowing investment tax credits to be claimed even before the reactor is operating. The provision to recover credits in the event a reactor is cancelled or suspended is unlikely to be effective in the most likely cause of termination - a bankruptcy due to poor economics."
The memo evaluates three tax break subsidies, describing how they work and estimating their subsidy value to recipients in the nuclear power sector:
-- 5-year accelerated depreciation period for new nuclear power plants
(Kerry-Lieberman section 1121).
-- Investment tax credit (ITC) for nuclear power facilities (K-L section
1122) and the related grants for qualified nuclear power facility
expenditures in lieu of tax credits (K-L section 1126).
-- Modification of credit for production from advanced nuclear power
facilities (K-L section 1124).
According to the Earth Track analysis:
-- The K-L tax breaks would be worth billions per reactor. The new
subsidies will be worth between $1.3 billion and nearly $3.0 billion
on a net present value per new reactor. This is equivalent to between
15 and 20 percent of the total all-in cost of the reactors, as
projected by industry. In fact, the new nuclear tax break subsidies
would be worth 15 to more than 50 percent of the expected market value
of power the plants will produce. This is over and above the many
other subsidies the nuclear projects would already receive.
-- The new K-L tax breaks will undermine equity requirements of the
nuclear loan guarantee program. In theory, the current rules require
investors to hold a 20 percent equity stake in the new project. A key
goal of this requirement is to ensure investors have a strong interest
in the long-term success of the venture. However, the K-L bill would
in effect allow investors to recover funds equal to this equity share
within the first few years of plant operation. Financial risks from
project failure would then rest almost entirely with taxpayers.
-- Total tax subsidies to new reactors could reach tens of billions of
dollars from K-L's two main tax breaks alone. The national cost of
K-L's tax provisions can be benchmarked by evaluating two build-out
scenarios: six reactors, matching the number likely to be supported
under K-L's expanded nuclear loan guarantee pool; and 22 reactors,
matching the number going through NRC licensing as of May 2010. As not
all reactors will be the same type, the calculations assume half are
AP1000s and half Areva EPRs. Under a six-reactor scenario, K-L will
add $9.7 billion to $15.6 billion in tax subsidies to nuclear power.
Under a 22-reactor scenario, the net present value of subsidies on
offer just through 5-year depreciation and ITCs reaches $35.7 billion
to $57.3 billion. Neither of these other subsidies have any national
caps under Kerry-Lieberman.
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Friends of the Earth President Erich Pica said: "Doling out an additional $1.3-$3 billion in tax breaks per new reactor means the industry would be at the table playing almost entirely with taxpayer money. Industry will have little to lose when a reactor goes belly up. While taxpayers are bankrolling the industry's nuclear gamble they would share in none of the reactor's financial returns. In fact, all taxpayers will receive if the reactors are built is responsibility for disposing of the waste. By contrast, investors stand to make billions with no risk should their reactor gambit goes belly up and enter bankruptcy."
Earth Track Founder Doug Koplow said: "These substantial tax breaks for new reactors greatly impede market access for competing energy sources and worsen the already substantial risks to taxpayers from a nuclear build-out. As has clearly been shown in U.S. mortgage markets, the likelihood of bad financial decisions rises sharply if only other people's capital is at risk. Kerry-Lieberman's nuclear tax breaks do just this by replacing investor equity with taxpayer money, and allowing investment tax credits to be claimed even before the reactor is operating. The provision to recover credits in the event a reactor is cancelled or suspended is unlikely to be effective in the most likely cause of termination - a bankruptcy due to poor economics."
The memo evaluates three tax break subsidies, describing how they work and estimating their subsidy value to recipients in the nuclear power sector:
-- 5-year accelerated depreciation period for new nuclear power plants
(Kerry-Lieberman section 1121).
-- Investment tax credit (ITC) for nuclear power facilities (K-L section
1122) and the related grants for qualified nuclear power facility
expenditures in lieu of tax credits (K-L section 1126).
-- Modification of credit for production from advanced nuclear power
facilities (K-L section 1124).
According to the Earth Track analysis:
-- The K-L tax breaks would be worth billions per reactor. The new
subsidies will be worth between $1.3 billion and nearly $3.0 billion
on a net present value per new reactor. This is equivalent to between
15 and 20 percent of the total all-in cost of the reactors, as
projected by industry. In fact, the new nuclear tax break subsidies
would be worth 15 to more than 50 percent of the expected market value
of power the plants will produce. This is over and above the many
other subsidies the nuclear projects would already receive.
-- The new K-L tax breaks will undermine equity requirements of the
nuclear loan guarantee program. In theory, the current rules require
investors to hold a 20 percent equity stake in the new project. A key
goal of this requirement is to ensure investors have a strong interest
in the long-term success of the venture. However, the K-L bill would
in effect allow investors to recover funds equal to this equity share
within the first few years of plant operation. Financial risks from
project failure would then rest almost entirely with taxpayers.
-- Total tax subsidies to new reactors could reach tens of billions of
dollars from K-L's two main tax breaks alone. The national cost of
K-L's tax provisions can be benchmarked by evaluating two build-out
scenarios: six reactors, matching the number likely to be supported
under K-L's expanded nuclear loan guarantee pool; and 22 reactors,
matching the number going through NRC licensing as of May 2010. As not
all reactors will be the same type, the calculations assume half are
AP1000s and half Areva EPRs. Under a six-reactor scenario, K-L will
add $9.7 billion to $15.6 billion in tax subsidies to nuclear power.
Under a 22-reactor scenario, the net present value of subsidies on
offer just through 5-year depreciation and ITCs reaches $35.7 billion
to $57.3 billion. Neither of these other subsidies have any national
caps under Kerry-Lieberman.
-----
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Saturday, June 12, 2010
PSC Candidate Tim Echols to headline “Energy Forum” in Savannah, Valdosta, and Marietta
With pending rate increases, an oil spill in the Gulf of Mexico, and the looming “Cap and Trade” federal legislation on the horizon, energy is a “hot topic” issue.
Three “forums” are slated to allow the public to listen and discuss the future of energy in the state of Georgia. Two key speakers will be Sam Fleet, the state director for the Pickens Plan, and Tim Echols, candidate for the Public Service Commission, a statewide seat. Other speakers will be announced soon
“Foreign oil is a threat to American safety,” says Fleet. “It’s time to move forward to energy independence and bring more jobs to America and the state of Georgia.”
Echols has been traveling the state promoting nuclear power, renewable energy and the conversion of municipal vehicles to CNG (compressed natural gas). “I think the potential cost overruns for the new nuclear reactors at Plant Vogtle will be the biggest issue during my six year term,” said Echols. “If Pres. Obama somehow passes Cap and Trade, however, Georgia may face unprecedented energy cost increases in order to comply. It will not be good for our state.”
Stephen Morris, the official organizer of the events, said that many Georgians feel they don’t have enough input into the Public Service Commission hearing process. “These meetings will give the ordinary citizen a chance to listen, learn and offer suggestions to opinion leaders like Fleet and Echols,” said Morrison, a college student from Savannah.
Savannah Event Details: June 16, Wed, 12pm to 1:30pm at the Southwest Chatham Library at 14097 Abercorn Street, Savannah, GA 31419 (behind Target at Savannah Mall)
Valdosta Event Details: June 18, Friday, 12:30pm to 2pm at the Valdosta Library at Valdosta-Lowndes County Library, 300 Woodrow Wilson Drive in Valdosta, Georgia 31602.
Cobb Event Details: June 24, Thursday, 4:30pm to 6:00pm at the East Marietta Public Library, 2051 Lower Roswell Road Marietta, GA 30068-3352.
To see more on Sam Fleet and the Pickens Plan, go to http://www.pickensplan.com/news/2010/05/22/georgia-state-leader-traveling-across-to-georgia-to-support-pickens-plan/
Echols’ newest campaign commercial can be seen at http://www.youtube.com/watch?v=2h3d6MOCRYQ
More information on his criteria for can be found at www.timechols.com
Three “forums” are slated to allow the public to listen and discuss the future of energy in the state of Georgia. Two key speakers will be Sam Fleet, the state director for the Pickens Plan, and Tim Echols, candidate for the Public Service Commission, a statewide seat. Other speakers will be announced soon
“Foreign oil is a threat to American safety,” says Fleet. “It’s time to move forward to energy independence and bring more jobs to America and the state of Georgia.”
Echols has been traveling the state promoting nuclear power, renewable energy and the conversion of municipal vehicles to CNG (compressed natural gas). “I think the potential cost overruns for the new nuclear reactors at Plant Vogtle will be the biggest issue during my six year term,” said Echols. “If Pres. Obama somehow passes Cap and Trade, however, Georgia may face unprecedented energy cost increases in order to comply. It will not be good for our state.”
Stephen Morris, the official organizer of the events, said that many Georgians feel they don’t have enough input into the Public Service Commission hearing process. “These meetings will give the ordinary citizen a chance to listen, learn and offer suggestions to opinion leaders like Fleet and Echols,” said Morrison, a college student from Savannah.
Savannah Event Details: June 16, Wed, 12pm to 1:30pm at the Southwest Chatham Library at 14097 Abercorn Street, Savannah, GA 31419 (behind Target at Savannah Mall)
Valdosta Event Details: June 18, Friday, 12:30pm to 2pm at the Valdosta Library at Valdosta-Lowndes County Library, 300 Woodrow Wilson Drive in Valdosta, Georgia 31602.
Cobb Event Details: June 24, Thursday, 4:30pm to 6:00pm at the East Marietta Public Library, 2051 Lower Roswell Road Marietta, GA 30068-3352.
To see more on Sam Fleet and the Pickens Plan, go to http://www.pickensplan.com/news/2010/05/22/georgia-state-leader-traveling-across-to-georgia-to-support-pickens-plan/
Echols’ newest campaign commercial can be seen at http://www.youtube.com/watch?v=2h3d6MOCRYQ
More information on his criteria for can be found at www.timechols.com
Thursday, June 10, 2010
APOGEE Interactive Websites Take Top Honors in National Rural Electric Cooperative Association Annual Competition
/PRNewswire/ -- APOGEE Interactive, an industry-leading provider of online solutions to energy utilities, dominated the winners' circle in the Best Website category of this year's Spotlight on Excellence competition hosted by the National Rural Electric Cooperative Association and the Council of Rural Electric Communicators.
Two APOGEE clients earned honors for websites -- the most award winners posted by a single vendor in the Best Website category.
Spotlight on Excellence recognizes electric cooperatives for high-quality communication and marketing efforts. The NRECA member websites were judged on criteria such as relevant and concise text, easy navigation, distinctive appearance, and engaging opportunities for visitor interaction. More than 800 entries were submitted in this year's competition and were judged by faculty members of the distinguished journalism schools at the University of Missouri-Columbia and the University of North Carolina at Chapel Hill.
Apogee has designed, built and hosts more than 150 utility websites nationwide, many earning a variety of industry accolades each year ranging from NRECA's to the Public Relations Society of America.
Flint Energies Inc. (www.flintenergies.com), a member-owned electric cooperative based in Warner Robins, Ga., won the Award of Excellence in the Best Website category. Flint is one of APOGEE's original website clients dating back to the mid '90s and this winning website version was revamped and redesigned by Apogee in 2009. The site includes a self-serve Home Energy Audit for customers, a HomeEnergySuite with a virtual home 'tour' of energy costs, and a CommercialEnergySuite for business and industry clients - all developed by Apogee.
Georgia EMC (www.georgiaemc.com), the statewide EMC trade association based in Tucker, Ga., and another longtime APOGEE client, earned an Award of Merit. Redesigned and newly launched last year by APOGEE, this site features a comprehensive Members Center for EMC associates, Calendar and Media centers, and numerous pages with information on green power, energy efficiency, statewide legislative initiatives and community outreach.
"We're dedicated to helping our utility clients achieve highly positive website interactions with their members and consumers," said APOGEE President and Chief Executive Officer Susan Gilbert. "In addition to engaging design and intuitive navigation, our expertise also includes compelling energy efficiency tools that are fun and easy to use, which all help create positive user experiences and energy-saving behavior."
APOGEE Interactive Inc. (www.apogee.net)
Founded in 1994, APOGEE is a leading provider of online energy efficiency solutions to energy utilities. The company's energy analysis applications are currently in use by more than 450 utilities across the US, reaching millions of consumers daily, and its website client roster now exceeds 150 companies. APOGEE's clients include leading investor-owned, public power and cooperative energy companies including Flint Energies, Georgia EMC, Marietta Power & Water, Southern Company (SO), Cobb EMC, Con Edison (ED), BGE (CEG), NSTAR (NST), American Electric Power (AEP), Entergy (ETR), SMUD, Puget Sound Energy and Jackson EMC.
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Two APOGEE clients earned honors for websites -- the most award winners posted by a single vendor in the Best Website category.
Spotlight on Excellence recognizes electric cooperatives for high-quality communication and marketing efforts. The NRECA member websites were judged on criteria such as relevant and concise text, easy navigation, distinctive appearance, and engaging opportunities for visitor interaction. More than 800 entries were submitted in this year's competition and were judged by faculty members of the distinguished journalism schools at the University of Missouri-Columbia and the University of North Carolina at Chapel Hill.
Apogee has designed, built and hosts more than 150 utility websites nationwide, many earning a variety of industry accolades each year ranging from NRECA's to the Public Relations Society of America.
Flint Energies Inc. (www.flintenergies.com), a member-owned electric cooperative based in Warner Robins, Ga., won the Award of Excellence in the Best Website category. Flint is one of APOGEE's original website clients dating back to the mid '90s and this winning website version was revamped and redesigned by Apogee in 2009. The site includes a self-serve Home Energy Audit for customers, a HomeEnergySuite with a virtual home 'tour' of energy costs, and a CommercialEnergySuite for business and industry clients - all developed by Apogee.
Georgia EMC (www.georgiaemc.com), the statewide EMC trade association based in Tucker, Ga., and another longtime APOGEE client, earned an Award of Merit. Redesigned and newly launched last year by APOGEE, this site features a comprehensive Members Center for EMC associates, Calendar and Media centers, and numerous pages with information on green power, energy efficiency, statewide legislative initiatives and community outreach.
"We're dedicated to helping our utility clients achieve highly positive website interactions with their members and consumers," said APOGEE President and Chief Executive Officer Susan Gilbert. "In addition to engaging design and intuitive navigation, our expertise also includes compelling energy efficiency tools that are fun and easy to use, which all help create positive user experiences and energy-saving behavior."
APOGEE Interactive Inc. (www.apogee.net)
Founded in 1994, APOGEE is a leading provider of online energy efficiency solutions to energy utilities. The company's energy analysis applications are currently in use by more than 450 utilities across the US, reaching millions of consumers daily, and its website client roster now exceeds 150 companies. APOGEE's clients include leading investor-owned, public power and cooperative energy companies including Flint Energies, Georgia EMC, Marietta Power & Water, Southern Company (SO), Cobb EMC, Con Edison (ED), BGE (CEG), NSTAR (NST), American Electric Power (AEP), Entergy (ETR), SMUD, Puget Sound Energy and Jackson EMC.
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www.georgiafrontpage.com
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Follow us on Twitter: @GAFrontPage
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