Category Archives: Politics

Coal ash and political spending transparency shareholder resolutions defeated @ SO 2012-05-23

Defeated, but with increased shareholder support this year, two shareholder transparency resolutions have been introduced year after year at Southern Company (SO), one on coal ash and the other on political spending. Here’s video of the political spending resolution being presented at the meeting, and here’s the text of the resolution. This year as usual the SO board opposed both resolutions, and as you can hear SO CEO Thomas A. Fanning announce in this video, both were voted down, with these percentages:

The reasons the board gave for opposing the political spending transparency resolution include that SO claims it is already disclosing everything it needs to. Much of that disclosure started in 2006 due to shareholder and outside pressure to do so. Center for Political Accountability press release 5 April 2006,

McDonald’s (NYSE: MCD) and Southern Co. (NYSE:SO) agreed to disclose and have their directors oversee soft money political contributions made with corporate funds, shareholder activists announced today. The groups, Washington-based Center for Political Accountability (CPA), socially responsible investment firm Trillium Asset Management Corp., and the Central Laborers’ Pension Fund, are part of a nationwide campaign to bring transparency and accountability to company political spending.

In its own 2012 statement of opposition, the SO board noted shareholder pressure is having an effect on transparency:

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Strickland Mill in Remerton —Emily Foster

Received yesterday. -jsq

FYI: The Strickland Mill in Remerton is being threatened with demolition. Remerton City Council will meet to discuss this situation on Monday, June 4th at 5:30pm during their work session, and on Monday, June 11th at 5:30pm to vote on the matter. The public is invited to both of these meetings to express opinions on the possible demolition of the Mill. As you all are aware, this mill complex dates to 1899 and is one of the few surviving textile mills in our region. This is an important community landmark and was very influential to the development of Valdosta, not to mention integral to Remerton's existence.

Emily Conklin Foster

Exit strategy for when this big nuclear bet goes bad? –John S. Quarterman @ SO 2012-05-23

At Southern Company’s (SO) shareholder meeting, I enumerated some examples in the U.S., Japan, and Germany of nuclear gone bad, and pointed out Japan, Germany, and even Bulgaria had already or were getting out of nuclear, while Southern Company and Georgia continued to bet the farm on nuclear, and I asked what was SO’s exit strategy for when that bad bet goes bad? SO CEO Thomas A. Fanning said they had learned everything there was to learn from Fukushima, and besides Plant Vogtle is 100 miles inland where there are no earthquakes. He didn’t mention the same description applies to Chernobyl. He did say SO planned to make the U.S. nuclear industry the best in the world.

You kept using big bets and then bet the farm. Very interesting terminology.

Um, the title of SO’s corporate biography that SO was giving out in the lobby in paper, video, and audiobook formats is Big Bets: Decisions and Leaders That Shaped Southern Company. And ‘nuclear’s “bet-the-farm” risk’ is, as I mentioned, bond-rater Moody’s phrase.

He said the new Plant Vogtle units were planned for $14 billion and 10 years to build, and

…it is a big investment.

He said a company to do such a thing needed scale, financial integrity, and existing credibility of operations.

Scale seems to me a problem, since SO seems deadset on building mainframes in a networked-tablet world.

SO’s nuclear financial track record is that four nuclear plants were originally planend for Plant Vogtle at a cost of $660 million and only two were built at a cost of $8.87 billion. The new units at Plant Vogtle are already overbudget by almost a billion dollars. The Georgia Power bonds that SO CEO Fanning mentioned: aren’t they guaranteed by the $8.33 billion federal loan guarantee?

Regarding operations credibility, a year ago Vogtle Unit 1 shut down 2 days after the NRC gave Vogtle a clean bill of health. But the SO CEO says it’s all better now.

Here’s the video, followed by links to sources for the points I made:

Exit strategy for when this big nuclear bet goes bad? –John S. Quarterman
Shareholder Meeting, Southern Company (SO),
Callaway Gardens, Pine Mountain, Georgia, 23 May 2012.
Video by John S. Quarterman for Lowndes Area Knowledge Exchange (LAKE).

Here are the main points I was reading from, with links:

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In Georgia, “competitive” is not for you!

Remember the Southern Company brags about “Our competitive generation business”. The important word there is “our”, as in the Southern Company and its subsidiary Georgia Power gets to compete, and you don’t. Unless you’re big enough.

According to the Georgia Public Service Commission:

Some retail competition has been present in Georgia since 1973 with the passage of the Georgia Territorial Electric Service Act. This Act enables customers with manufacturing or commercial loads of 900 kW or greater a one time choice in their electric supplier. It also provides eligible customers the opportunity to transfer from one electric supplier to another provided all parties agree.

This is apparently only one of twelve Georgia laws that impede a competitive solar power market. But this Territoriality Law alone might be enough of an impediment. Here’s a guide, and here’s the text of the Georgia Territorial Electric Service Act.

Because of that law, you can’t you put up solar panels on your own land and sell your power to somebody somewhere else. And you can’t get a company like SolarCity or Lower Rates for Customers to put up solar panels on your property and sell you the power ( or can you?). Unless you’re generating at least 900 KW; then maybe you can get selected businesses to switch to your power once. Except you probably still won’t qualify, because Continue reading →

Georgia Power, nuclear buggy whip manufacturer

I think of Georgia Power more as like IBM when minicomputers came out. IBM built bigger mainframes. The Internet started to spread, and IBM pushed its own proprietary SNA network. (Remember SNA? I didn’t think so.) Then PCs came out, and IBM layoffs started….

Glenn Carroll wrote for Georgia Wand today, Georgia Power Stuck in a Nuclear Jam,

Everybody except for Georgia is jumping on the wind and solar bandwagon, but Georgia Power is side-lined in a nuclear jam like a horse-buggy manufacturer at the dawning of the Ford assembly line.

The white area on that map is for states that have no standards or goals for renewable energy.

Remember Georgia Power is the biggest part of its parent, The Southern Company, and the nuclear units at Plant Vogtle (operating and planned) are actually owned by another offshoot of The Southern Company. According to Southern Company’s webpage, Megawatts and Markets,

Southern Company regulated regional electric utilities serve a 120,000-square-mile territory in Alabama, Florida, Georgia, and Mississippi. Our competitive generation business extends to markets in six southeastern states.

It’s interesting how similar the Southern Company’s markets are to the states in that white southeast no-renewable-energy-portfolio area!

-jsq

Southern Company Rated Worst of Seven Major U.S. Utilities

Southern Company, Number One! In failing grades, that is. Room for improvement in renewable energy.

Green America press release dated 24 May 2011, Southern Company Rated Worst of Seven Major U.S. Utilities: Southern Gets Straight “F”s in Grading of “The Dirty Seven” Utilities, Also Home to Three of 10 Worst-Polluting Power Plants in U.S.,

On the eve of Southern Company (NYSE: SO) holding its annual meeting of stockholders in Pine Mountain, GA., the nonprofit Green America released a report today ranking the major U.S. power producer as “the United States’ most irresponsible utility.”

Titled “Leadership We Can Live Without: The Real Corporate Social Responsibility Report for Southern Company,” the Green America analysis assigns letter grades to seven major U.S. utilities on four fronts: reliance on coal; pollution; reliance on and expansion of nuclear power; and lobbying expenditures. Southern came in dead last with straight “F” grades in all four of the categories.

The PR and the report have a lot more detail, such as this:

Clean Air Task Force data shows that Southern Company’s coal-fired power plants cause 1,224 deaths, 1,710 heart attacks, 20,770 asthma attacks, and 752 cases of chronic bronchitis per year. The total annual cost of all of this damage is over $9 billion.

Hey, that’s more than the original projected cost of the new nukes! Georgians, do you like trading your health for SO’s coal plants and its nuclear boondoggle?

Or would you rather Southern Company and Georgia Power spend less for more electricity by following Austin Energy and Cobb EMC into solar power, plus wind off the coast, for jobs, for energy independence, for health, and for profit?

-jsq

Saudi Arabia turns from oil to sun: $109 Billion Plan

When the world's biggest oil producer plans to shift to solar energy, maybe it's time for the rest of the world to realize there's money in solar energy.

Sarfaraz Khan wrote for Solar PV Investor 17 May 2012 Saudi Arabia, The Land of Plenty For Solar: Saudi Arabia's energy strategy plans to add 41GW to the national grid in 20 years through investments of $109B.

Ali Al Naimi, surprised the global solar stage with his grand announcement, “Saudi Arabia aspires to export as much solar energy in the future as it exports oil now.”

That was two years ago. This month Saudi Arabia held the fourth Saudi Solar Energy forum.

The summit turned out to be extremely successful, as by the end of the meeting, Saudi Arabia officially announced its ambitious solar energy strategy that plans to add 41GW to the national grid in 20 years through investments of $109B. The country currently produces just 3MW from solar. According to the plan, 25GW will be generated from solar thermal plants and 16GW from PV panels. The country aspires to generate a quarter of its total energy from the solar sector by 2032.

It seems the world's biggest oil exporter is planning for a future in which oil is much less important and the sun much more so.

And in that conference:

The companies that participated in the conference included First Solar (FSLR), Amonix, Areva Solar, Abengoa Solar, Novatec Solar, Siemens and Soitec Solar GmbH.

Not a U.S. company in that list. Of course, the U.S. doesn't need Saudi Arabia as a customer if we just get on with solar here at home. Georgia, for that matter, has two solar manufacturers Suniva of Norcross and MAGE SOLAR of Dublin) and more than 40 certified solar installers.

Where's our renewable energy plan?

-jsq

Google shows the way on offshore wind

Zachary Shahan wrote for CleanTechnica yesterday, Google-backed Offshore Wind Power Superhighway Moves Forward,

The Department of the Interior stated on Monday that there was “no overlapping competitive interest” for the areas where the $5-billion project would be constructed. This decision leads us to the next step in the process — environmental review of the Atlantic Wind Connection line.

The article notes that environmental review could take 18-24 months, with a projected power online date of end of 2017. Southern Company projects Vogtle Unit 3 online in 2016 and Unit 3 in 2017. And that’s before the cost overruns that have already started. I’m guessing Google will have its Atlantic wind project up and running before Southern Company has any new nukes online, if they’re ever online.

And remember, the Atlantic Wind Connection is privately funded:

Other than Google, companies funding the project include Good Energies and Japan’s Marubeni Corp.

The cost is about $5 billion for 6,000 MW of wind energy generation.

Meanwhile, Southern Company has already overrun its nuke cost estimate by almost $1 billion within a few weeks of NRC go-ahead. It won’t take long at that rate for the cost overruns to exceed $5 billion. That’s on top of the perhaps $8.3 billion base cost. That’s for two 1,100 MW reactors, for 2,200 MW total.

What if Southern Company and private investors quit wasting resources on nukes and funded a Georgia Bight Wind Connection instead? After all, Georgia’s offshore waters are part of the East coast wind energy basket.

-jsq

How Much Wind and Solar Capacity Would a Billion Dollars Buy?

Those cost overruns so far on the new nukes? How much solar and wind could that money buy?

John Hanger wrote on his Facts of the Day today, $913 Million Construction Overrun Hits Georgia New Nukes: How Much Gas, Wind, Solar Capacity Would That Buy?

Comparing the Vogtle initial $913 million cost overrun to the capital costs of gas, wind, and solar plants show just how big these cost overruns can be. The Vogtle $913 million cost overrun by itself could have paid for approximately 1,000 megawatts of natural gas generation; 450 megawatts of wind power; and 330 megawatts of solar power.

Don’t forget that’s just the first cost overruns on those nukes. When the current Plant Vogtle nukes were built, there were supposed to be four at a cost of $660 million; only two were built, at a cost of $8.87 billion. That’s a cost overrun of 1300%. How much solar and wind could $8 billion buy?

Moreover, gas, wind, and solar generation could be up and running in 3-years or less from the first day to the last day of development, as opposed to the 10 years or more needed to build a nuclear plant.

Austin Energy’s new 30 MW solar farm, for example, approved beginning of 2009, opened end of 2011, and cost less than originally projected.

Oh, and solar doesn’t leak radioactive tritium like Plant Hatch and won’t get shut down two days after an NRC clean bill of health like Plant Vogtle.

-jsq

 

Cost overruns already starting for Georgia Power’s new nukes

Remember how Georgia Power customers get to pay for cost overruns on the new nukes? Well, the overruns have already started.

JoAnn Merrigan wrote for WSAV 15 May 2012, Environmental Groups: Plant Vogtle Reactors Almost One Billion Over Budget,

A group of nine national environmental groups says that the two new nuclear reactors being built at Plant Vogtle (near Waynesboro in eastern Georgia) are over budget by up to $1 billion dollars. The opponents say Georgia Power’s share of the cost overruns is currently $400 million and that may cost ratepayers as well as taxpayers who are guranteeing loans in the billions of dollars.

The nine environmental groups, Friends of the Earth, Southern Alliance for Clean Energy, Blue Ridge Environmental Defense League, Center for a Sustainable Coast, Citizens Allied for Safe Energy, Georgia Women’s Action for New Directions, NC WARN, Nuclear Information and Resource Service, and Nuclear Watch South, are also suing:

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