Category Archives: Economy

Vogtle nuke loan deadline extended for third time

We don’t know the federal cost estimates or the terms and conditions or why Plant Vogtle just got another three month extension on that $8.33 billion federal loan guarantee.

Rob Pavey wrote for the August Chronicle yesterday, Federal loan guarantee offer for Vogtle expansion extended again,

The owners of Plant Vogtle have secured — for the third time — an extension to allow further negotiation with the U.S. Energy Department over its 2010 offer of up to $8.3 billion in federal loan guarantees to help finance two new nuclear reactors.

Georgia Power and co-owners Oglethorpe Power and Municipal Electric Authority of Georgia were conditionally approved in February 2010 for loan-guarantee financing, in which the government promises to assume a company’s debt if the company defaults. However, the details were never agreed on. Two extensions have since expired, with the most recent deadline — June 30 — passing without any formal agreement in place. Jeannice M.W. Hall, a Southern Co. spokeswoman, said in an e-mail Wednesday that the new extension sets a Sept. 30 deadline for completing the loan guarantee arrangements.

With Southern Company’s stock already downgraded because of Kemper Coal and Plant Vogtle, after S&P’s downgraded SO’s credit, and with still more cost overruns at Kemper on top of Vogtle being 19 months late and a billion dollars over budget, as Gloria Tatum asked back in May, why is SO gambling on nuclear instead of solar?

If you’re tired of this, you can ask DoE Secretary Ernest Moniz to revoke that loan.

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Coal and natural gas cost effective vs. energy efficiency, wind, and solar power? –Stephanie Coffin @ SO 2013-05-22

SO CEO Tom Fanning is a true believer in “all of the above”, yet a skeptic about natural gas. However, he really doesn’t have much faith in renewables, as he indicated at the 22 May 2013 Southern Company Stockholder Meeting and even more strongly in the Wall Street Journal.

retirees and stockholders in the room wonder about the $13 million salary --Stephanie Coffin This question is from Stephanie Coffin of Atlanta, Georgia, and she holds 18 shares of stock.

TF: Hello, Stephanie.

SC: How are you, Tom?

TF: Dynamite. How are you?

your income --Stephanie Coffin SC: Last year, I came to this meeting to ask a question and to listen to the Southern Company reports. And so before I came I got to thinking about what has changed since the last meeting. I think two things, and then I’ll ask my question.

The first is the chairperson’s salary increased 34 percent, over $13 million a year. I’m sure the retirees and stockholders in the room wonder about the $13 million salary and see that as negative PR in the face of continuing recession. $13 million a year, most of us are on fixed income. I mean, your income My income --Stephanie Coffin is fixed, too, but it’s very high. Mine is pretty low and we all have to pay electric bills.

The second change, and then I’ll ask my question, is that now 70 — 97 percent of all scientists believe that climate change — that is, global warming — is real and caused by human activity and this is a big shift. Last year we were the climate deniers, we’re in control, and now 97 percent of all scientists say it’s real, it’s coming, you better get ready. In the face of this scientific consensus the Southern Company has maintained its reliance on fossil fuels, mountaintop coal, old coal plants and pushing nuclear power with huge wattage demands and the dangers of nuclear wastes.

While I applaud the Southern Company’s baby steps Continue reading →

More cost overruns at Southern Company’s Kemper Coal in Mississippi

Why all these overruns? All sorts of excuses about everything but bad management and it was a bad idea in the first place. Does anybody believe this coal plant will be completed anywhere near on time? Why not stop wasting money on it and invest in solar and wind instead?

Only a few months after the last cost overruns, Jeff Amy wrote for AP 2 July 2013, Miss. Power: More overruns at Kemper power plant: $4.45B price tag latest estimate,

The unit of Atlanta-based Southern Co. told stockholders on Monday that an ongoing review of costs at the coal-fired plant initially has identified at least another $160 million in cost increases.

Mississippi Power spokeswoman Amoi Geter said Southern Co. shareholders would absorb any cost increases. The parent company was hit with $540 million in charges in April, although the after-tax cost to shareholders was lower. In a January settlement with Mississippi regulators, the company agreed to shield customers from further cost increases.

The overruns could push the cost of the plant, adjoining lignite mine and associated pipelines to $4.45 billion. That’s more than $1.1 billion above original estimates.

It’s only supposed to produce 582 megawatts if ever completed. SO could have already built far more solar and wind power for that $4.45 billion, on time and on budget.

Why is Plant Ratcliffe Kemper IGCC so late and so expensive?

Continue reading →

Why are you gambling on nuclear instead of solar? –Gloria Tatum @ SO 2013-05-22

Why is SO gambling our health and dollars on Plant Vogtle when Georgia Power could be getting on with solar power? SO CEO Tom Fanning avoided the first part of Gloria Tatum’s question by simply denying it, and danced around the second part by saying the rate hike for Plant Vogtle’s cost overruns would only be 6 to 8 percent, not 12 percent. Do you want to pay 6 or 8 percent more for a radioactive white elephant when you could be getting power from the sun for less?

The floor person at the 22 May 2013 Southern Company Stockholder Meeting introduced Gloria Tatum with 164 shares, representing Nuclear Watch South, and the SO CEO insisted

TF: Call me Tom. Gee whiz.

Gloria Tatum GT: Tom. Hi,Tom. It’s great to be here on this beautiful day.

TF: Thank you. Yes ma’am.

GT: And I know Southern Company’s done many wonderful things, but I want to point out a few things to you today.

First, you know, after the Fukushima meltdown, TEPCO’s $50 billion nuclear complex became a worthless liability. The deadly radiation still circles the planet, polluting the earth and increasing cancer. Other countries have abandoned their nuclear and they’re looking to renewable, but Southern Company’s affiliate, Georgia Power, continues construction on two new nuclear reactors at Plant Vogtle. Now Shell Bluff is a community down the stream from Plant Vogtle and it has experienced a 25 percent increase in cancer since Vogtle 1 and 2 have been built.

Another problem with Vogtle Continue reading →

ADS buys three more waste companies, one in Valdosta

That’s five ADS purchases since Veolia. So much for Steve Edwards not being able to foresee any further acquisitions back in April. Somebody remind me, why was it a good idea for the Lowndes County Commission granting an exclusive franchise to a monopoly that’s only getting bigger, and already had little reason to keep prices down? County Commissioners certainly have not been able to explain it.

Allan Gerlat wrote for Waste Age 2 July 2013, Advanced Disposal Buys Three Waste Haulers,

Advanced Disposal Services Inc. continued its recent buying spree with the acquisition of waste haulers in Pennsylvania, Georgia and Illinois.

The Ponte Vedra, Fla.-based Advanced Disposal said in news releases it purchased Winsor Disposal in Kane Pa.; Valdosta Waste Services in Valdosta, Ga.; and Benson Disposal Services Inc. in Macon, Ill.

Here’s a list of just the ADS purchases I know of, not counting the rumor: Continue reading →

The stars all lined up for the homeless –Deidra White @ LCDP 2013-07-02

The homeless formerly living under the James Beck Overpass now have homes and most have jobs, said Valdosta City Council Deidra White at last night’s Lowndes County Democratic Party Annual 4th of July Barbecue.

White said the encampment under the overpass had been growing for some time, and people in her district, which contains the overpass, were increasingly concerned yet had had little success in dealing with the situation.

Deidra White speaking at Lowndes County Democratic Party July 4th BBQ So I contacted many people in the community, homeless advocates, churches, governmental, civil, nonprofits; anyone that I’ve ever come across who has ever worked in any capacity helping with the homeless situation. And in a very,almost seemingly the stars all lined up a couple of weeks ago. Many people came together to do something about the specific eleven homeless persons who were living under the James Beck Overpass.

A private citizen donated property and said that they could stay on this property for a temporary time until we find a permanent solution. Members of the homeless coalition immediately began identifying potential employers….

She referred listeners to the recent newspaper stories for some details, and then continued:

Continue reading →

Georgia Power wants more of your money to pay for its bad bets

It’s the annual Georgia Power rate hike, blaming everything except coal and nukes.

Georgia Power PR 28 June 2013, Georgia Power seeks cost recovery for infrastructure investments,

Georgia Power today asked the Georgia Public Service Commission (PSC) for permission to increase its base rates approximately $482 million, or 6.1 percent. The request is being made to allow the company to recover the costs of recent and future investments in infrastructure —including environmental controls, transmission and distribution, generation, and smart grid technologies — required in order to maintain high levels of reliability and superior customer service.

The proposed change in rates would be effective Jan. 1, 2014.

What a coincidence! One year to the month after the last rate hike. Once again blaming “smart grid technologies, environmental controls”, etc. Much more likely, this has to do with the recent downgrades of Georgia Power’s parent the Southern Company, and those were for coal and nukes. As Adam Smith said two centuries ago, “utilities levy an absurd tax upon the rest of their fellow citizens”.

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Southern Company downgraded because of coal and nukes –two analysts

It’s not like they weren’t warned, about coal and about nukes. It’s not Standard & Poor’s this time, but that could happen soon, too. SO’s biggest part, Georgia Power, is neck-deep in nukes, as Edison Electric Institute’s warning about the disruptive challenge of distributed solar starts to affect its parent’s stock price.

Zacks.com wrote 21 June 2013, Southern Company Slips to Sell – Analyst Blog

On Jun 20, Zacks Investment Research downgraded electric utility firm, Southern Company ( SO ), to a Zacks Rank #4 (Sell).

Why the Downgrade?

Continue reading →

Clean Green Metro Florida by Brookings Institution

Amy Liu spoke about globalization last week in Orlando, Leaders will seize the clean economy about clean industries leading economic growth. Even though she was talking linear growth, her Metropolitan Policy Program at Brookings Institution has some interesting points that mesh with the exponential growth like compound interest Georgia can get on with in solar and wind power.

The Florida Economic Development Council 2013 FEDC Conference 26-28 June 2013 was the venue for Amy Liu’s A Globally Competitive Florida: Regional Opportunities in the Next Economy. To summarize her slides (which are in a format not easily linkable, she bashes Congress to motivate cities leading. In particular, Florida’s 20 metro ares have 61.75 of land area, 94.1% of population, and 95.9% of output. Nothing surprising there: cities are densely populated. Two of the biggest in Florida are in our Floridan Aquifer: Orlando and Jacksonville. (She didn’t mention the aquifer; I did.)

The national economic recovery is slow, the middle class has been hard-hit, and Florida is recovering faster, except on unemployment. The U.S. population is rapidly getting older and by 2050 53.7% will be minorities, each of which have very different educational achievements, and much of this is happening in metro areas.

Her solution is Continue reading →

Ready, willing, and able for wind –Jill Stuckey for Georgia Southern @ GA PSC 2013-06-18

Jill Stuckey spoke for wind power for economic development on behalf of the College of Engineering and Information Technologies at Georgia Southern University. She said with its experience in solar and wind Georgia Southern is willing, able, and ready to help at the Georgia Public Service Commission meeting Tuesday 18 June 2013.

Here’s the video:


Ready, willing, and able for wind –Jill Stuckey for Georgia Southern
Georgia Power proposed closing of coal plants,
Administrative Session, GA Public Service Commission (GA PSC),
Doug Everrett (1: south Georgia), Tim Echols (2: east Georgia), Chairman Chuck Eaton (3: metro Atlanta), Stan Wise (5 north Georgia), Bubba McDonald (4: west Georgia),
Video by John S. Quarterman for Lowndes Area Knowledge Exchange (LAKE), 244 Washington Street SW, Atlanta, GA, 30334-9052, 18 June 2013.

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