Georgia nuke planner: there will be huge cost overruns and construction delays

[bananas]

http://www.ajc.com/services/content/business/stories/2009/02/09/psc_nuclear_plants.html

Updated: 7:23 p.m. February 09, 2009
Georgia Power stands firm on nuke plans
Utility also pushing to bill customers before plants are built

By MARGARET NEWKIRK, JIM GALLOWAY

The Atlanta Journal-Constitution

Monday, February 09, 2009

Georgia Power again drew a line in the sand Monday, telling the state Public Service Commission that it will not accept limits on what its shareholders can earn on new nuclear reactors.

It also defended plans to begin charging customers for those reactors early — a proposal the utility is also pushing aggressively in the state Legislature — as its nuclear expansion campaign comes to a head.

• .DOC FILE: Read the PSC's staff analysis of the revised Senate bill.

Georgia Power wants to build two new reactors at its Vogtle nuclear plant near Augusta.

The reactors will cost an estimated $14 billion, shared by customers of Georgia Power, electric cooperatives and municipal power companies. Georgia Power’s estimated its part of that is $6.4 billion.

<snip>

The debate focused almost exclusively on two lightening rod disputes.

The first is over a commission staff proposal to shift some of the project’s risk of cost overruns to the company and its shareholders.

The staff has proposed tying Georgia Power’s rate of return on the project to its ability to stay close to budget.

The proposal would allow slight increases in that rate of return if the project comes in $250 million or more under budget, and the opposite if its comes in $250 million or more over budget.

In testimony the company’s planning director, Jeff Burleson, called the proposal “little more than a wager” on the project’s costs.

He said the risk-sharing mechanism would tempt Georgia Power to avoid improvements that might hold down operating costs long term.

<snip>

He said the company would accept no PSC certificate that included the risk-sharing and implied it would go to court if the PSC ordered such a mechanism anyway.

<snip>

The planning director is telling you exactly what they are planning.
They are planning on NOT meeting the budget or schedule.
They are planning to make extensive design modifications during contruction,
and those will result in huge cost overruns and construction delays.
Operating costs for a nuclear plant are very low, the expensive part is getting it built in the first place.
Their priority should be on getting it built on schedule on budget.
But one's man boondoggle is another man's gravy train.
There is no risk to financial investors, because they will have risk-free government-guaranteed loans.
COst overruns will be paid for by ratepayers and taxpayers.
There's no incentive to keep the project on budget or on schedule.
The company's planning director, Jeff Burleson, just told you they are planning to go over-budget and behind schedule.
Are you listening?

[jpak]

1. Georgia Power is charging its customers to "invest" in that nuke before it is built

Will they be asked to eat the cost overuns too?

yup

Will they profit from their "investment" in this plant?

nope

[bananas]

2. The Atlanta Progressive News is following the story

http://www.atlantaprogressiveblog.com/2009/02/more-on-this-weeks-georgia-powerpsc-hearing-and-sb-31/

More on this week’s Georgia Power/PSC hearing and SB 31

The Georgia Public Service Commission held a hearing today to listen to Georgia Power witnesses defend the company’s proposal to expand its Plant Vogtle nuclear power plant in southwest Georgia. Testimony focused on the cost of the project and the pros and cons of raising rates on residential consumers in order to pay for the project while construction is ongoing.

Stay tuned to Atlanta Progressive News for a full story on today’s hearing.

Meanwhile, read about SB 31, a piece of legislation before the Georgia General Assembly that would allow Georgia Power to raise rates on consumers during construction to pay for the project. The company, under current rules, can only charge for construction after the project is completed and the PSC’s Public Interest Advocacy Staff recommended in December against changing that rule.

To read the testimony delivered today by Georgia Power’s two panels, click here. (Click here for additions to the first panel testimony and here for additions to the second panel.) To reach all the pertinent documents filed in this case, click here. (There is quite a bit to wade through. Focus on document titles that begin, “Direct Testimony of…”)

Don’t forget about this APN story from last month that reported on last month’s hearing. It includes more concerns from citizens about environmental and safety issues as well as project costs. The accompanying APB post includes great comments.

[ConcernedCanuk]

3. $14 billion buys a lot of solar panels and windmills - cleaner, and faster

.
.
.

So what's with all this nuclear shit??

[Massacure]

4. Yes, but those 14 billion dollars will buy a lot of nuclear power too.

14 billion dollars for two 1100 megawatt reactors, roughly $6,400 per kilowatt power.

I've seen figures of about $2,000 per kilowatt power for wind turbines.

Solar panels are $4,800 per kilowatt power according to solarbuzz.com

However solar panels have maybe a 15% capacity factor, and wind of maybe 30-40%. Nuclear power is 90-95%.

One thing I would love to see is where those $14 billion dollars go for the construction of those nuclear reactors. How much of it is for license applications, how much for legal fees, how much is interest on the debt, and so on.

[bananas]

5. It's going to be a lot more than 14 billion dollars

Didn't you read what the planning director said?
He said HE WILL GO TO COURT TO BLOCK INCENTIVES FOR GETTING IT DONE ON BUDGET.
He is PLANNING huge cost overruns.
This will wind up costing 28 billion, and take 20 years to finidh.