Category Archives: Planning

Why CWIP is a bad idea

Iowa is rejecting CWIP, and Georgia can, too. Here’s why.

Herman K. Trabish wrote for Green Tech Media 22 February 2012, The Nuclear Industry’s Answer to Its Marketplace Woes: Construction Work in Progress (CWIP) financing shifts the risks of nuclear energy to utility ratepayers,

A sign of the nuclear industry’s difficult situation in the aftermath of Fukushima is a proposal before the Iowa legislature
“Construction Work in Progress was intended to circumvent the core consumer protection of the regulatory decision-making process,”
that would allow utility MidAmerican Energy Holdings, a subsidiary of Warren Buffett’s Berkshire Hathaway, to build a new nuclear facility in the state using Construction Work in Progress (CWIP) financing (also called advanced cost recovery).

“Investment in nuclear power is the antithesis of the kind of investments you would want to make under the current uncertain conditions,” explained nuclear industry authority Mark Cooper, a senior fellow for economic analysis at Vermont Law School’s Institute for Energy and the Environment. “They cannot raise the capital to build these plants in normal markets under the normal regulatory structures.”

CWIP would allow the utility to raise the money necessary to build a nuclear power plant by billing ratepayers in advance of and during construction.

“Construction Work in Progress was intended to circumvent the core consumer protection of the regulatory decision-making process,” Cooper explained. “It exposes ratepayers to all the risk.” The nuclear industry’s answer to its post-Fukushima challenges, he said, “is to simply rip out the heart of consumer protection and turn the logic of capital markets on their head.”

And the Iowa Utilities Board staff agreed with Cooper and recommended against CWIP.
His message to policymakers is simple, Cooper said. “This is an investment you would not make with your own money. Therefore, you should not make it with the ratepayers’ money.”
Meanwhile, in Georgia: Continue reading →

VLCIA executive session on real estate transactions last Thursday noon

According to the VLCIA website, they had a special called meeting last Thursday, including apparently an executive session to discuss real estate transactions. One big real estate transaction with a deadline of today (13 March 2012) is the CCA private prison.

This is on the front page of the VLCIA website:

Notice:The Valdosta-Lowndes County Industrial Authority will hold a Special Called Meeting on Thursday, March 8, 2012 at noon, for the purpose of reviewing bids and awarding a contract for the Miller Business Park Landscape/Irrigation Project and discuss real estate transactions.
Here’s the agenda. I congratulate the Industrial Authority for posting agendas!

Note the executive session. The agenda doesn’t say what the executive session is for (isn’t it supposed to, according to Georgia sunshine laws?). We can guess it’s for real estate transactions, as in the notice on the VLCIA front page.

Hm, what real estate transactions could that be? A contract for a landscaping and irrigation project isn’t a real estate transaction. Let me think… oh, the CCA private prison is a real estate transaction! Could that be what they were discussing?

The rest of VLCIA’s website is pretty thoroughly broken right now, as in

Warning: Parameter 3 to showItem() expected to be a reference, value given in /home/industri/public_html/includes/Cache/Lite/Function.php on line 100
None of the other links seem to work.

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Special Called Meeting of the
Valdosta-Lowndes County Industrial Authority
Thursday, March 8, 2012, 12 noon
Valdosta Lowndes County Industrial Authority
Conference Room
Valdosta, Georgia
  • Call to Order Special Called Meeting

  • Invocation

  • Welcome Guests

  • Westside Business Park

    • Reviewing bids and awarding a contract for the Miller Business Park Landscape and Irrigation Project
  • Adjourn Special Called Meeting into Executive Session
  • Adjourn Executive Session/Call to Order Special Called Meeting
  • Adjourn Special Called Meeting

Tornado report —Ashley Tye @ LCC 2012-03-12

No injuries or loss of life from the March 3rd tornado, but no disaster declaration and thus no government financial assistance, said Ashley Tye in a long report to the Lowndes County Commission this morning. Such reports are not normally repeated at the Tuesday evening regular sessions, so if you weren’t there, here is the only place you will see it.

Ashley Tye remarked:

The good news is that there were no reported injuries or no loss of life.
There was a lot of property damage. He said the National Weather Service determined it was an F2 tornado, and once it got to Walker’s Crossing it had winds of about 100 miles an hour. He said 34 homes were affected, of which 19 were destroyed, meaning uninhabitable.

He’s checking types of assistance that might be available.

Unfortunately, financial assistance is unavailable; it requires a federal declaration. And while the level of damage is obviously devastating to us in Lowndes County, it didn’t reach the level that would meet the threshold that would cause the governor to request a federal declaration.
He said there had been a tremendous outpouring of volunteer support. And insurance might pay off, although some people may not have enough insurance.

He added that the county’s code red emergency system worked well, and probably had something to do with there being no loss of life. I know I got at least six county code red messages that day before my message box filled up (I was in a building with no signal).

Commissioner Richard Raines asked if FEMA had to have a declaration for GEMA to respond. Ashley Tye answered: Continue reading →

Marching at the Industrial Authority 2012-03-06

After starting up at the prison site and heading out, we honking at the Valdosta City Council, we marched at the Industrial Authority office. Drive Away CCA!

Here’s Part 1 of 3:


Marching at the Industrial Authority 2012 Part 1 of 3:
No private prison in Lowndes County,
Motorcade against Corrections Corporation of America, Drive Away CCA,
CCA, VLCIA, Corrections Corporation of America, Valdosta-Lowndes County Industrial Authority,
Valdosta City Council, Lowndes County Commission, incarceration, prison, private prison,
Valdosta, Lowndes County, Georgia, 6 March 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

They weren’t in, since they only meet once a month.

Here’s Part 2 of 3: Continue reading →

What we can learn from no nukes and solartopia of 30 years ago

Why were only 12% of the projected 1000 nuclear plants built in the U.S. by the year 2000? Because of the no nukes movement started in Seabrook, New Hampshire in 1977. And because New Hampshire banned CWIP. Here in Georgia in 2012 we can cut to the chase and do what they did that worked.

Harvey Wasserman wrote for The Free Press 13 May 2007, How creative mass non-violence beat a nuke and launched the global green power movement,

Thirty years ago this month, in the small seacoast town of Seabrook, New Hampshire, a force of mass non-violent green advocacy collided with the nuke establishment.

A definitive victory over corporate power was won. And the global grassroots “No Nukes” movement emerged as one of the most important and effective in human history.

It still writes the bottom line on atomic energy and global warming. All today’s green energy battles can be dated to May, 13, 1977, when 550 Clamshell Alliance protestors walked victoriously free after thirteen days of media-saturated imprisonment. Not a single US reactor ordered since that day has been completed.

How effective?
Richard Nixon had pledged to build 1000 nukes in the US by the year 2000. But the industry peaked at less than 120. Today, just over a hundred operate. No US reactor ordered since 1974 has been completed. The Seabrook demonstrations—which extended to civil disobedience actions on Wall Street—were key to keeping nearly 880 US reactors unbuilt.
The only new nukes ordered since then are the ones Georgia Power wants to build at Plant Vogtle on the Savannah River, for which Georgia Power customers are already getting billed Construction Work in Progress (CWIP).

Thirty years later, some things haven’t changed: Continue reading →

VDT picks up private prison national article: the news is not good for CCA

The VDT, after following the local private prison story, picked up a national story about CCA’s offer to 48 state governors to buy their prisons. CCA is not getting any takers.

AP wrote 10 March 2012, Firm offers states cash for prisons,

Despite a need for cash, several states immediately slammed the door on the offer, a sign that privatizing prisons might not be as popular as it once was.
Doesn’t seem very popular around here. Most people still don’t seem to have heard about the proposed local private prison, but once they do, by far most say they are against it.
Prison departments in California, Texas and Georgia all dismissed the idea. Florida’s prison system said it doesn’t have the authority to make that kind of decision and officials in CCA’s home state of Tennessee said they aren’t reviewing the proposal. The states refused to say why they were rejecting the offer.
Good for Georgia and the other states! Georgia, where the prison population is already plummeting.
“Knowing the state government, it has to have something to do with the potential political backlash,” said Jeanne Stinchcomb, a criminal justice professor at Florida Atlantic University who has written two books on the corrections industry. “Privatization has reaped some negative publicity, so I can only assume that despite the possible benefits, there would be a price to pay for supporting it.”
Do tell….

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Farm bill would reauthorize USDA REAP grants

Sen. Richard Lugar (R-Ind.) and Rep. Marlin Stutzman (R-Ind.) wrote for The Hill 5 March 2012, REFRESH Act: Strengthen rural communities and U.S. energy security
Reauthorize and reform the popular REAP program to demonstrate opportunities for economically viable energy investments and encourage loans rather than grants.
Rep. Sanford Bishop (D-Ga.) has long been working with local farmers and USDA to help with agriculture and rural jobs.

The Indiana Congress members continued:

Real commitment to rural growth requires that we put money where our mouth — or authorization — is. We offer basic mandatory funding that is more than paid for through cutting waste.

Renewable energy production creates jobs. Rural communities see potential for real economic growth in the emerging biofuel sector. Advances in technologies and agricultural techniques could offer economic benefits from coast to coast. Using the REFRESH Act as the basis for the next Farm Bill would help galvanize private investment in the sector, bringing jobs to a ready economy.

Indeed it can.

Obviously I like REAP grants, since we got one for Okra Paradise Farms. That 25% REAP grant plus an 35% ARRA NREL plus 35% GEFA credits will add up to 90% covered by grants and tax credits, which is a pretty good deal.

Now that remaining 10% is still a significant amount; like the price of a small car. But in 7-15 years (how long it will take to pay off this system, depending on how you figure it), what would the value of a car be? Much less than when you bought it. Meanwhile, these solar panels will be generating almost as much power as they are now, and they will continue to generate for at least a decade more, probably much more.

The big missing piece is up-front financing. Local banks will do it, but only for collateral. By which they mean real estate. Nope, they won’t take the solar equipment as collateral, even though it would still be operational many years from now.

Local banks or credit unions could see this as an opportunity and start accepting solar equipment as collateral. Beyond that, with a few changes to Georgia law, to deal with the power utility territoriality clause, and maybe to ban boondoggle charges for more dangerous and less job-producing power sources, we could get a commodity market in solar power in this state. You could put up solar panels like this, or more, on your house or business roof, and sell your excess power to somebody in Atlanta with less roof space. That would produce widely distributed energy, reducing need for foreign oil or dirty coal, lowering your electric bills, maybe even producing you a profit, and generating local jobs right here in south Georgia.

Private investment is ready to come in for utility-scale solar projects.

And companies like SolarCity that already do everything from financing to installation could do that in Georgia. Or home-grown companies could do that. Or local banks could finance while local companies installed.

Anyway, we have here on our workshop roof a proof of concept, operational right now, purchased partly via a USDA REAP grant.

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How and why did New Hampshire ban CWIP?

After years of protests and the Three Mile Island nuclear accident in Pennsylvania, the New Hampshire legislature passed a law that denied the Public Service Company of New Hampshire (PSNH) Construction Work in Progress (CWIP) charges before the Seabrook nuclear plant provided electricity to its customers. One of two planned Seabrook reactors did finally go into service in 1990, more than a decade late and far over budget. Meanwhile, the New Hampshire Supreme Court ruled the anti-CWIP law was constitutional, and PSNH went bankrupt in 1988:
the first investor-owned utility since the Great Depression to declare bankruptcy.
Seabrook was the last nuclear reactor built in the United States. Until now. In Georgia. Which has CWIP. Maybe we should change that.

Here’s an excerpt from a corporate history of Public Service Company of New Hampshire (PSNH):

By January 1972 PSNH had decided not only to build a nuclear plant at Seabrook but also to have it consist of two 1,150-megawatt units, to be completed in 1979. PSNH was to own 50 percent of the $1.3 billion project and share the remaining investment with other New England utilities. In January 1974 the New Hampshire Site Evaluation Committee, the Public Utilities Commission (PUC) and other regulatory bodies had issued the basic permits, but interveners in the case succeeded in having the New Hampshire Supreme Court overturn these permits. After repeated appeals and rehearings PSNH received its construction permit in July 1976—and experienced its first protest at the planned site.

There followed a decade of other protests at the site, inside regulatory chambers, and in New Hampshire and Washington courtrooms. The 1979 accident at the Three Mile Island nuclear-power plant in Pennsylvania—to name but one event that triggered concern

Continue reading →

Industrial Authority got wetlands easement from Lowndes County for private prison site

Before selling it off to a private landowner who who two years later got a contract with private prison company CCA to resell it for almost 100% profit, the Industrial Authority acquired a road easement through county-owned wetlands from Lowndes County:
Further, Grantor hereby conveys a Non-Exclusive Ingress and Egress Easement in that certain 0.685 acre tract or parcel of land situate, lying and being in Land Lot 153 of th 11th Land District of Lowndes County, Georgia. Said 0.685 acre tract being designated as “0.685 acres — Ingress/Egress Easement reserved for future right-of-way extension” as depicted on that certain map or survey “Valdosta-Lowndes County Industrial Authority” dated September 8, 2004 and recorded September 9, 2004 in Plat Cabinet A, Page 2659, Lowndes County records, to which map and survey is hereby referred in further aid of description.
An easement that a private landowner might have more difficulty getting from the county. Isn’t that convenient?

This is the wetland that has not yet been approved for that purpose by the Army Corps of Engineers, according to Ashley Paulk.

By the way, that wetland easement in 2004 was before Brad Lofton was hired in 2006 to be executive director of VLCIA, so the very peculiar history of this bit of land can’t all be blamed on him. The appointed Industrial Authority board and the elected Lowndes County Commission and Valdosta City Council are all also involved.

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Can Georgia ban Construction Work in Progress (CWIP)?

Georgia Power charges its customers Construction Work in Progress (CWIP) for the nuclear plants it is constructing at Plant Vogtle on the Savannah River. This while claiming a solar energy commodity market would raise rates for its customers. If nuclear is so great, why does it need to be pre-funded by customers? Can Georgia ban CWIP? Other states have.

This interesting survey by Wisconsin, courtesy of National Association of Regulatory Utility Commissioners (NARUC), says Illinois, Montana, New Hampshire, Ohio, and Oregon ban CWIP (except in certain cases for some of those states) and North Carolina and Washington in practice do not use it.

Appended below is the first question from the survey and the answers. The entire survey is on the LAKE website.

Here’s who in the Georgia state government you can contact about CWIP.

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CURRENT RETURN ON CWIP
VERSUS AFUDC [Allowance for Funds Used During Construction]
REGULATORY SURVEY RESULTS
March 2006

The Wisconsin Commission is relooking at its current practice for allowing a current return on construction work in progress (CWIP). We would appreciate it if you or someone else from your agency could respond to the following questions.
Continue reading →