Georgia Power's plan for expanding nuclear power approved
Energy needs must be put out for bid first
By Anne Marie Kyzer Staff Writer

Georgia Power is banking on new reactors at Plant Vogtle to meet future energy demand, but now they must see if someone else could provide the energy at a lower cost.

Last week, the Georgia Public Service Commission (PSC) approved an agreement that resolved contested issues in Georgia Power's 2007 Integrated Resource Plan, which included, among other things, their plan to pursue more nuclear generation.

The PSC's approval of their plan is a stepping stone in the company's pursuit of new reactors at Plant Vogtle. Georgia Power initially sought to skip the bidding process when pursuing new nuclear generation, but the agreement approved last week will require them to put their need for new generation out for bid.

The PSC called the agreement a compromise between Georgia Power and groups representing customers, independent power producers and environmental interests.

Other utilities or private companies could submit bids for supplying energy for Georgia Power. Coal and nuclear are the only options feasible for supplying the base load generation, which is energy that must be generated around the clock to meet demand, according to spokesperson Carol Boatright.

She said Georgia Power intends to submit their bid using nuclear power. As of now, she said she does not know of another company capable of providing the energy needed at a lower cost than Georgia Power.

"We feel like we're going to be cost competitive, but we'll certainly look at anything presented to us," Boatright said. "The reason the PSC does this is so the consumer gets the most efficient energy for their dollar."

Boatright said company officials did not want to put it out to bid at first because base load generation is so critical. They felt it was important to "own and control this generation."

This marks the first time Georgia Power has been required to bid out base load generation. They have been accustomed to bidding out intermediate and peak load generation, which supplies energy needed when demand increases periodically.

A request for proposals will be put out in November, and the bids are due in by February 2008. They will be evaluated by an independent contractor. A decision is expected in May of next year.

The PSC has accelerated the bidding process, so it is not expected to interfere with the timeline Georgia Power anticipated for new reactors, Boatright said.

Georgia Power and Southern Nuclear Operating Company must still go through years of preparation and gain additional state and federal approval before any construction would take place. Currently, they are seeking an early site permit from the U.S. Nuclear Regulatory Commission, which would approve Plant Vogtle as a site for two new reactors.