Georgia Public Service Commission's Previous Actions May Lessen Effects of E.P.A. Clean Power Rule

The proactive decisions of the Georgia Public Service Commission (Commission) over the past six years will lessen some of the onerous effects of the U.S. Environmental Protection Agency Clean Power Plan rule released on August 3, 2015. These decisions have put Georgia ahead of many other states in this process if the state is forced to implement the EPA mandated reductions in carbon emissions. Those actions are listed below:

• In 2009, the Commission approved the plan to construct two new nuclear power units currently under construction at Georgia Power's Plant Vogtle near Waynesboro, Georgia. These units will produce no carbon emissions or other greenhouse gases for at least sixty years.
• Since 2011, working with the Commission, Georgia Power has increased their purchases of solar generation from almost nothing to approximately 1 gigawatt of electricity.  If all of this solar was in production today, Georgia Power would have the fourth largest solar portfolio in the nation.
• In 2013 the Commission approved the closing of 16 of Georgia Power Company's coal and oil fired electric generating units, a decision that has already reduced carbon dioxide emissions and other greenhouse gases.
• In 2014 the Commission approved Georgia Power's purchase of 250 megawatts of wind power, another clean energy source, which produces no carbon or other greenhouse gases. It is expected that having this carbon-free energy source will assist the state in meeting its carbon emissions targets under the new rule.
• Georgia Power is in the process of adding 282 megawatts of homegrown, Georgia biomass capacity to our grid.
• Georgia Power Company, at the urging of the Commission, has increased its demand-side power initiative and energy efficiency programs. Both of these programs have reduced power consumption, which in turn reduces greenhouse gases.

These programs, implemented by Georgia Power under Commission orders, will make the process less difficult for Georgia to meet its initial emission reduction goals in 2022. In addition, if the Commission stays on its current course, it will also be less difficult to meet Georgia's 2030 goals.  However, it is difficult to predict with certainty the exact effect this rule, should it take effect, will have on Georgia's electric rates. We believe that, overall, it will increase electric power rates in Georgia and nationwide.

The Commission will continue to provide input to the Georgia Environmental Protection Division as it works to complete the compliance plan for our state.

However, this Commission, as stated in our August 3, 2015 news release, still believes the rule is a federal overreach and tramples over the careful planning which has achieved competitive and reliable electricity in our state.  The rule will seriously tie the Commission's hands in our Integrated Resource Planning (IRP) process that allows this Commission, working with our investor-owned utility and other interested parties, to decide on the generation mix that best provides reliable electricity at reasonable rates. This rule may significantly limit fuel diversity and increase the cost of electric power in Georgia and nationwide.

The Georgia Public Service Commission is a constitutional agency that exercises its authority and influence to ensure that consumers receive safe, reliable, and reasonably-priced telecommunications, electric and natural gas service from financially viable and technically competent companies. For more information, go to www.psc.state.ga.us.