Georgia Power: Judge's ruling won't affect power plant construction

AJC: 

A Fulton County Superior Court judge ruled in favor of an environmental group Friday, but it won't affect Georgia Power's plan to build two nuclear reactors at Plant Vogtle, the company said.

The environmental group, the Southern Alliance for Clean Energy, filed the lawsuit challenging the Georgia Public Service Commission’s decision to let the utility raise rates to pay for the plants before they start operating. On Friday, Judge Wendy Shoob said the PSC acted illegally by failing to properly document a justification for the reactors.

“This is not related to the need for the project," Georgia Power spokesman Jeff Wilson told the AJC. "Construction will continue as scheduled on the new Vogtle units."

An attorney for SACE said Friday's ruling was a major victory for their efforts to stop the construction of the nuclear plants, which would be the first built in the U.S. in 30 years. The PSC contends the reactors are safe, but SACE attorney Michael Carvalho said the utilities regulatory commission doesn't have the facts to back it up.

“Can we really say this is a tried and true technology? No we can’t," Carvalho told the AJC.

Earlier this month, Shoob dismissed key portions of SACE's lawsuit, which sought to block Georgia Power's ability to charge customers in advance for the plants' construction. Shoob ruled it was too premature to contest the fees since rates had not yet been raised.

SACE proceeded with its challenge of the PSC's approval of the project. Shoob sided with the environmentalists on Friday.

A PSC spokesman said the commission will consult with its legal counsel before taking any action.

State lawmakers approved a law last year allowing Georgia Power, a Southern Co. subsidiary, to begin collecting $1.6 billion in financing and shareholder equity costs early.

Under the new law, an average household would see an additional monthly charge of $1.30 on its electricity bill starting in 2011. That fee could reach $9.10 by 2017. Supporters of the new law said the change would save about $300 million.

SACE, however, argued the law is unconstitutional and forces small, residential users to bear a greater share of the costs than large, industrial power users.

Friday's ruling does not affect the state law, Georgia Power's Wilson said.

“We applaud the Judge’s decision and continue to find it incredible that the Georgia Public Service Commission would put $14 billion of ratepayer money at risk on this project without properly documenting the factual basis behind this high risk decision,” said Stephen Smith, executive director of Southern Alliance for Clean Energy.

Posted via email from Jim Nichols