Tag Archives: cost overrun

Regarding the recently refinanced bonds —Bill Slaughter

Many thanks to Lowndes County Chairman Bill Slaughter for taking the time to respond to a citizen's question in Citizens Wishing to Be Heard! The response didn't actually answer my question, but that may be because the question wasn't clear enough without a copy of the flyer that claimed the county's new judicial and administrative complex was "100% Paid by SPLOST" and "$0 Balance Owed"; see next post.

An hour or two after I sent a letter to County Manager Joe Pritchard Monday, someone from the county called to say Chairman Bill Slaughter had sent me a letter in response to my question to the Commission about bonds, but it had been returned by the Post Office. As you can see by the image of the envelope, they sent it to my residence address, where I don't get mail. That's why I always include my postal address on Citizens Wishing to Be Heard forms, open records requests, etc. Anyway, they made it available for pickup at the county palace. Ten days after the PO sent it back to them is better than never.

Here's Chairman Slaughter's letter. -jsq

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Dear Mr. Pritchard: How are we paying on something that was 100% paid off? —John S. Quarterman

I sent this today. -jsq

 
From: John S. Quarterman <questions@quarterman.com>
Cc: bslaughter@lowndescounty.com, jevans@lowndescounty.com, rraines@lowndescounty.com, cpowell@lowndescounty.com, dmarshall@lowndescounty.com, jpage@lowndescounty.com, questions@quarterman.com
Subject: How are we paying on something that was 100% paid off?

Dear Mr. Pritchard,

You may recall that at the Lowndes County Commission meeting of the 8th of January 2013, I asked the following:

“When this building complex was opened in 2010, the county put out a double-sheet flyer saying it was completely paid off out of SPLOST money, with zero dollars owed. I’m wondering how it is that then, either in November or December, the Commission just before your one here, refinanced bonds that included I think it was six or seven million dollars for this very building complex? I’m very confused by that. I wonder if someone could clarify how we’re paying on something that was completely 100% paid off with zero owed.”

I asked Commissioner Crawford Powell this question at the going-away reception for former Chairman Ashley Paulk on 14 December 2012, and he referred me to you for an answer. It has been more than two weeks since I asked in a Commission Regular Session and I have received no answer. So I ask again.

Specifically:

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How are we paying on something that was 100% paid off? —John S. Quarterman @ LCC 2013-01-08

Why are we furloughing librarians to save $30,000 when we apparently floated bonds for unbudgeted millions on the county palace? That’s essentially what I asked the Lowndes County Commission at their 8 January 2013 Regular Session. Nobody had an answer.

Just to add to what Commissioner Lee said, in addition to everyone appreciating all your service, I’m sure we all appreciate all his long years of service.

Of course there are some things that have come up since he was first on the Commission. For example, Internet access.

The Internet is the roads of the future.

Perhaps funding that might be as important as striping roads. It’s a thought.

For more on that, see what Idelle Dear said just before.

And I really appreciate that clock there. It’s a sign that sometimes change is good.

At least they are doing a few things differently.

When this building complex was opened in 2010, the county put out a double-sheet flyer saying it was completely paid off out of SPLOST money, with zero dollars owed. I’m wondering how it is that then, either in November or December, the Commission just before your one here, refinanced bonds that included I think it was six or seven million dollars for this very building complex? I’m very confused by that. I wonder if someone could clarify how we’re paying on something that was completely 100% paid off with zero owed.

It’s actually about $8.9 million. Why are we paying that? Nobody answered. County Manager Joe Pritchard, pictured below, on that 2010 flyer I mentioned, paid no attention.

A prominent local member of the fourth estate said nobody was allowed to answer. Actually, the Commission’s own Policies and Procedures for Citizens Wishing to be Heard include these lines:

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Vogtle circular firing squad delaying opening

Southern Company and the other owners of Plant Vogtle are blaming the contractors (who are suing them) for further delays in construction. How much money will they waste before they never open?

Kristi E. Swartz wrote for the AJC yesterday, Disputed costs at Vogtle rise,

Georgia Power and a group of municipal and cooperative electric companies are building twin 1,100-megawatt reactors, the first in the United States to win permits in 30 years. The total expected cost of the project is $14 billion, but potential cost overruns at Vogtle, located in Waynesboro in east Georgia, continue to grow, according to the recent Southern Co. regulatory filing.

Delays in getting federal licensing approvals for the new reactor design and then for the entire project have been cited as the chief culprit.

Because of the dispute with contractors over the additional costs, “the owners are evaluating whether maintaining the currently scheduled commercial operation dates of 2016 and 2017 remains in the best interest of their customers,” the filing said. The total amount of the cost overruns could be well over $900 million; Georgia Power owns 45.7 percent of the project, so its share is $425 million, the latest filing said. Originally the overrun was projected at $400 million when the issue was first made public in April.

Up another $25 million since April? How long until it gets into billions of cost overruns? Which will be paid by whom?

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Southern Co. nuclear cost overruns expected? Let’s build solar and wind on time and on budget!

So if Southern Company expected cost overruns at Plant Vogtle, why didn’t they make a better estimate in the first place? What incentive do they have not to continue running up the cost and delaying completion, since they get to keep charging Georgia Power customers for construction, including for cost overruns, while floating $8.3 billion in federally guaranteed loans? Where is the financial integrity in all that?

AP reported yesterday, and even Fox News carried it, Building costs increase at US nuclear sites. They’re not talking about housing prices near the sites, either.

America’s first new nuclear plants in more than a decade are costing billions more to build and sometimes taking longer to deliver than planned, problems that could chill the industry’s hopes for a jumpstart to the nation’s new nuclear age.

Licensing delay charges, soaring construction expenses and installation glitches as mundane as misshapen metal bars have driven up the costs of three plants in Georgia, Tennessee and South Carolina, from hundreds of millions to as much as $2 billion, according to an Associated Press analysis of public records and regulatory filings.

Those problems, along with jangled nerves from last year’s meltdown in Japan and the lure of cheap natural gas, could discourage utilities from sinking cash into new reactors, experts said. The building slowdown would be another blow to the so-called nuclear renaissance, a drive over the past decade to build 30 new reactors to meet the country’s growing power needs. Industry watchers now say that only a handful will be built this decade.

“People are looking at these things very carefully,” said Richard Lester, head of the department of nuclear science and engineering at the Massachusetts Institute of Technology. Inexpensive gas alone, he said, “is casting a pretty long shadow over the prospects” for construction of new nuclear plants.

AP continues with a list of late and over-budget nuke projects, including Southern Company’s Plant Vogtle $800 million over and seven months late, TVA’s Watts Bar plant $2 billion over and 3 years late, Duke’s Plant Summer SCANA and Santee Cooper’s Summer Station $670 million over and a year late.

Southern Co. and others in the nuclear business say cost overruns are expected in projects this complex…

So why are they wasting our money on nukes when they could be deploying a lot more solar and wind on time and on budget?

…and that they are balanced out by other savings over the life of the plant. Southern Co. expects Plant Vogtle will cost $2 billion less to operate over its 60-year lifetime than initially projected because of anticipated tax breaks and historically low interest rates.

Get that? “anticipated tax breaks” that leave we the taxpayers Continue reading

Plant Vogtle is why Georgia is not a leader in solar power today

Could Georgia approach that German 20 gigawatt solar power figure? We’d already be there if we weren’t building Plant Vogtle.

Remember, John Hanger figures:

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.

That’s not 20 gigawatts. But the population of Germany is about 81 million, while the population of Georgia is about 9.8 million people, so the Georgia equivalent of 20 gigawatts would be about 2.4 gigawatts. The federal government has guaranteed about $8.3 billion in loans related to Plant Vogtle. That $8.3 billion would pay for about 3 gigawatts of solar power.

That big dish at Plant Vogtle? That’s not just a nuclear containment vessel, it’s a solar prevention wall. Preventing jobs, energy independence, and profit through solar power in Georgia.

Plant Vogtle is why Georgia is not a leader in solar power today.

-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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Calculate how much Vogtle is costing you —Mandy Hancock

Received yesterday, related to Georgia Power forges ahead with expensive nukes. -jsq
For those of you concerned about nuclear energy, here are some quick, meaningful actions you can take today. Maybe you aren’t concerned about nuclear energy. I bet you ARE concerned about $$$$.

Learn more about how Georgia Power is getting your money at the state and federal level. All US taxpayers all over the US are basically cosigning a loan for $8.3 B for the Vogtle reactors. Simultaneously, Georgia Power is raising your electric rates to fund the pre-construction costs by pulling the same advanced cost recovery scheme as SC and FL. You can learn more about the controversy surrounding the loan guarantees here

Calculate how much Vogtle is costing you on your monthly bill

(Look for “Nuclear Construction Cost Recovery Rider:”)

-Mandy Hancock

He is in the business of selling energy, not saving it. —Michael G. Noll

Received yesterday on Georgia Power forges ahead with expensive nukes. -jsq
Thanks for posting this John!

Mr. Bowers’ visit and his comments are almost comical, particularly his quote that “the government is stimulating for renewables to give them a running chance but, when you remove them, the question is can they run on their own two feet?”

A good question! Fact is that neither coal nor nuclear would be able to “run on their two own feet” if it wasn’t for the large subsidies both have received for decades. Now these are nicely hidden subsidies so that the average consumer thinks he is getting a bargain, without realizing that it is us, the consumers, who have actually paid for this “inexpensive rate”.

At the same time truly renewable and clean energies

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Georgia Power forges ahead with expensive nukes

Would you buy two new nukes from a company that ran over budget by a factor of 13 last time it built nuclear reactors at the same site? When one of those reactors got shut down for days a couple mnths ago? When another reactor even closer to us was discovered leaking radioactivity into our aquifer? A company that got the state to agree it could keep all its profit and socialize any cost overruns by passing them on to you, the customers? Well, Georgia Power CEO Paul Bowers thinks you should trust such a company to build nukes for gapower’s profit you!

Today in the VDT David Rodock wrote, Georgia Power discusses nuclear, solar, energy costs

Georgia Power president and CEO Paul Bowers visited Valdosta late last week to talk nuclear energy, solar and what the company has been doing to cut energy costs for their customers.
Yet another dignitary visits without telling the public first.

Anyway, much of the story is about how cost-effective and safe Continue reading