Yes! Schools Carry MORE BURDEN Than Some Other Customers

Big industrial users are not paying and carrying the same burden as others…that’s why they have been so quiet on Vogtle.

Some get a pass and don't pay the surtax as schools do:

Schools are on the standard “firm rate” for electric service. Firm rates include the NCCR (Nuclear Construction Cost Recovery) surcharge. So schools pay extra for Vogtle with school tax money.

Large electric customers that are on “marginal rates,” such as time-of-use and real-time-pricing rates, do not pay the NCCR charge on their bills nor do they make any contribution to capital costs. Large industrial and commercial customers may get a small fraction (10% to 30%) of their electric service on a firm rate, but the rest of their electric service is under a marginal rate. If a large industrial customer gets 80% of their electric service on a marginal rate they don’t really care about paying the NCCR charge and capital cost on the small firm portion of their bill. It is a huge savings for them, and they eventually will get the benefit of the Vogtle 3 and 4 generation.

The large industrial and commercial customers have been silent for years about the waste and cost overruns at Vogtle because they don’t really pay for the overruns.

Power company profits went up [and are up] when schools began paying the surcharge:

Source: https://nonukesyall.org/images/Georgia-Power-Profits-2005-2015.gif

Q: If schools stop paying the surcharge, how will Southern Company and Georgia Power manage to pay for Vogtle construction?

A: They have been enjoying highest profits ever. Why should they be allowed to keep cheating school children and teachers out of millions in money voted for schools.  No one voted for Southern Company to get school tax money for their plant.  No one agreed for them to get surcharge money year after year…. Maybe from the millions in profits or dividends or from huge salaries.   Or issue stock or borrow it like other business do.

Q: What if schools are exempted from paying the surcharge? Won’t others want exemption too? 

A: Yes, they probably will. We need to stop the taking of school money now, Schools need all their money now for children and teachers, and we’re for that.  Many know that the wording of the 2008 law was planned by the power company. We plan to correct this in 2020 so they leave school money alone.  This is another element showing why taking money for a private project is a flawed idea.

School Taxes Voted For Schools Subsidize New Nuclear Plant Vogtle 3&4

1.      Vogtle will be the most expensive power plant in the world.

2.                              South Carolina was building a much promoted in Georgia “twin” of Vogtle. Promoted because it was supposed to help keep costs down as they were being built together. As costs went up and up, SC quit. With a smaller population to bear the costs, and maybe better sense, they threw in the towel.  The PR touting of the “twin” has vanished.

3.                              In Georgia the promoted promise of low cost electricity that was the cry is dead.  Experts that gave warning of huge costs were right and electricity costs will now be higher and the “theory” to justify taking money up front from customers and benefit them later with low cost electricity is gone.

4.                              The cry of “lower cost electricity” and need for more power as the justifications for Vogtle have gone. Now new “justifications” are promoted: “carbon-free”,”24 hour a day dependable”, “creates jobs”, “national leadership”, ‘keep nuclear alive” etc.  These new reasons for Vogtle would have not carried favor years ago if put against the projected costs then and the staggering cost now apparent.

5.                              Another justification claim was a big need for more power. Recently, Georgia Power’s own numbers from their own power studies [introduced as evidence at the PSC] show that more power [from Vogtle] is not needed. …Some power experts believe that the power generated by Vogtle 3&4 will be sold on the grid to other states at a profit for the company, with the cost burdens on Georgians.

6.                              Nuclear is not really clean: Thousands of pounds of highly toxic very dirty poisonous waste must be kept very safe from getting out and managed with high security…for thousands of years.  The reason nuclear appears clean is that they trap and hide under lock and key the extremely dirty waste that nuclear produces each day.

7.                              Project Years late… this means that schools and other customers are kept paying the construction surcharge years longer than originally anticipated when Vogtle 3&4 were pushed onto Georgia.

8.                              Billions over presented projected costs. Put onto people and schools.

9.                              Most everyone pays a surcharge on the price of the electricity used to subsidize.  Paying more years than originally presented.

History Information From 2009  By Georgia Watch

Senate Bill 31 – Georgia Power’s prepay financing scheme May 29, 2009   from GeorgiaWatch  http://georgiawatch.org/senate-bill-31-georgia-powers-prepay-financing-scheme/

Sen. Don Balfour (R-Snellville) sponsored Senate Bill 31, which is now known as the Georgia Power tax. The controversial bill moved swiftly through both chambers and lander on Governor Perdue’s desk long before the session ended.-
SB 31, more commonly known as the Georgia Power tax, forces the utility’s customers to pay $2 billion dollars beginning in 2011 for the financing of new nuclear reactors at Plant Vogtle. One billion of this Georgia Power tax is early profit for the company and approximately $500 million is the prepayment of taxes.

According to Georgia Power’s own estimates, consumers with an average monthly power bill of $100 will pay an extra $1.30 per month on their bill, and see that amount increase to about $9.10 per month by 2017. Unforeseeable construction delays at Vogtle mean monthly increases could be much higher.

What’s more, the monthly increases in electric bills we will all see are estimates – Georgia Power’s lowball estimates – and are subject to change with any delays the expansion at Votgle may incur.

For example, if weather delays a day’s work, we as ratepayers must still pay for the loss of time. Similar projects in Alabama and Florida saw the cost of construction rise exponentially once building was underway due to unforsseable delays.

Legislators, consumer advocates and conservative bloggers that opposed the bill claimed its passage was due to Georgia Power’s well-connected, persistent lobbyists. To help Sen. Balfour make the case for SB 31, the utility hired 70 professional lobbyists.

During the first weeks of the 2009 session they filled capital hallways and spent thousands on dinners, drinks, sports tickets and other events for legislators in hopes of buying “yea” votes.

The legislature overwhelmingly adopted this tax increase and early profit scheme in spite of testimony at the legislature and the Public Service Commission that this would harm consumers and cost Georgians hundreds of millions more.

In April, Govorner Perdue signe SB 31 into law. Senator Robert Brown (D-Macon) immediately filed a repeal.