Dive Summary:
- Rep. Jeff Chapman, R-Brunswick, said he will propose legislation to the Georgia House of Representatives in order to shave profits from Georgia Power (GP) if the company exceeds the $6 billion budget proposed for building two new nuclear reactors.
- Electric customers of Georgia Power, a subsidiary of Southern Co., would still pay the utility for construction expenses and borrowing, but Chapman's plan would see GP earning reduced profits on any investments.
- Currently, GP earns over 11 percent in profits on each dollar spent on capital investments such as the nuclear plant.
From the article:
Georgia Power spokesman Mark Williams said the company had not seen Chapman's plan and could not comment on it. Williams said state utility regulators have reviewed and approved all of the utility's spending.
A draft of the legislation provided by Georgia Watch would require that Georgia Power's 2.4 million customers reimburse the company for its actual construction costs. However, the utility would earn a much lower return on its investment for any spending that goes over an original $6.4 billion construction budget set by the Georgia Public Service Commission. That cap was later lowered to roughly $6.1 billion after state lawmakers in 2010 permitted the utility to charge its customers in advance for the project's financing costs. ...