Organizing for America | Dianne Valentin's Blog: Please Help, Oppose This Recommendation

Please Help, Oppose This Recommendation

By Dianne - Jun 2nd, 2008 at 3:01 pm EDT

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Hi,
I wanted to share with you that the East Point City Council is having a meeting this evening where people have to sign up between 6:00 pm and 6:20 pm to speak at the 6:30 meeting being held at the law enforcement building.

This is long, but every word is necessary. Please read and show up whether you live in East Point or Not.

This is critical. The City Manager of East Point is recommending that the City of East Point participate in the agreement with MEAG Power on this expansion at Plant Vogtle, (Option 1 of the recommended actions) . The People of the City of East Point should recommend to decline to participate in the Plant Vogtle expansion, (Option 2 of the recommended actions).

Any East Point resident, especially homeowners should attend this meeting and be up in arms about the contract the City of East Point is planning to sign with the Municipal Electric Authority of Georgia (MEAG) Power one of East Point's electricity providers:

that is requiring that the city of East Point sign a contract now for electricity that they say will be generated by two nuclear power reactors at Plant Vogtle that haven't even been licensed to be built yet,
that would commit the City of East Point to using more nuclear generated electricity than it needs or than it already uses,
and that if the City of East Point signs this contract there is something called the MEAG Act, that was voted in favor of by the Georgia Supreme Court, that if any municipality that MEAG Power has an agreement with somehow, for some reason can't pay for the power they have ordered, they are required to raise taxes to pay for it.

Please note that all of this is going down really fast with regard to the public knowing about it.

Also, MEAG Power required that the City Council members sign confidentiality agreements, most but not all of the council members signed I think, I am not sure. How can a public servant negotiating on behalf of the public, sign a confidentiality agreement and not share with the public in enough open sessions for the public to be well informed about the issue on everything that is going on???

MEAG Power, who owns shares of Plant Vogtle along with Southern Nuclear's Georgia Power and others, has this set up so that the City of East Point could be burdened with the capitol expense of building these two nuclear power reactors for the next 60 years (they reference 20 years in the attached info, but the total process could commit the City of East Point for a lot longer), and we all know that nuclear reactors cost more to build than any quote currently given. They are trying to convince, (or maybe they have already), convinced the council that this is the best and cheapest option for the City of East Point and it doesn't appear that the City Council has done any home work to show that this is not the case.

If they had done their homework, they would not believe MEAG Power when they say that alternative energy sources would not be sufficient for the City's electricity needs when in fact that is not true. New studies show that solar and wind are both feasible and available to provide electricity service to this area as well as currently being cheaper, and will be even more so in the future.

Please show up en masse, at the Law Enforcement Building in East Point on East Point Street I think, it's next to city hall and the fire station. If you live in East Point show up and make comments to let the City Council know that they should not be signing this contract under any circumstances particularly not since the public citizens of East Point have not had the opportunity to fully study this issue. If you don't live in the city of East Point but care about this issue, show up and show moral support for the citizens of the City of East Point. This is our democratic republic and we need to support each other to make sure that the people elected to represent us, represent us, and not the lobbyist, corporations, and utilities that have money to sway their votes. With our collective will we can accomplish anything, and we need to work together for our common good. If you can't show up email the east Point City Council at council@eastpointcity.org to oppose this recommendation made by the City Manager. Tell them to go with recommendation #2 not to participate.
Please copy and forward this message/information widely, I know it is the last minute, but I only recently found out about this agenda item. If you know any reporters or bloggers let them know so that they can show up and report to the people on this issue that could ultimately, legally raise taxes to further pay for the nuclear industry's bottom line.

They are counting on you not knowing about this so that you can't make public comment. This is an opportunity for action. Fill the place to capacity, to overflow.

Peace & One Love
Dianne

My message has ended and I am sharing the City of East Point agenda item written by the City of East Point starts below.

CITY OF EAST POINT

CITY COUNCIL AGENDA ITEM

SUBJECT: CITY COUNCIL APPROVAL TO PARTICIPATE IN THE NEW PLANT VOGTLE

EXPANSION PROJECT

( X ) RECOMMENDATION ( ) POLICY / DISCUSSION ( ) STATUS REPORT

( ) ORDINANCE ( ) RESOLUTION ( ) OTHER

Date Submitted: 5/28/08 Date Work Session: N/A Date Council Meeting: 6/2/08

BUDGET IMPACT: $62.9 million amortized over 20 years ($4,143,000/year) beginning in 2036

ANNUAL:

CAPITAL:

FUNDING SOURCE: N/A

CITY COUNCIL ACTION REQUESTED ON: June 2, 2008

PURPOSE: To discuss and request the City Council approve the City of East Point’s participation in the new Plant Vogtle expansion project by purchasing 10MW of power.

HISTORY:

I previously communicated to the Council that staff and I had a change of position in terms of my recommendation on the City of East Point’s participation in the new Plant Vogtle Project. This change is based on the following two reasons:

I initially believed that the MEAG credits that the agreement would require us to roll into the new agreement were the existing $30 million in credits that we begin receiving in 2009 and continue receiving over the following 10-year period. In meeting with MEAG officials, they clarified that the credits would actually be new credits generated by our participation in the project; and
In meeting with them last week, we looked at projections of the City’s power capacity based on conservative 2% annual power requirement increases over the next 30 years. In looking at the projection chart (attached) we would not be able to meet total load requirement by 2038. While we have access to 30MW, our projected requirement by 2038 is 9.6MW. Staff is recommending that the City opt in for 10MW, which the City will not begin paying for until 2036 and will have accumulated revenue credits and interest by that time.

As you can see in the heading of the attached graph, the MEAG Power Supply staff have recommended the following purchase of the Plant Vogtle Additional Units nuclear generation project for the City of East Point as follows:

1. Year 2016 - Commercial Operation of Units – 0.0 MW

2. Year 2036 - After selling to Third Parties for 20 Years – 9.6 MW

The 9.6MW purchase from the Plant Vogtle Additional Units Project is necessary in order to meet our growing base load requirements by the Year 2038. In order to participate in the project, the City Council must execute a Power Sales Contract for 9.6 MW (or the 10.0 recommended by staff) before June 15th. There will be no action required by the City Council if you choose not to participate in the project.

The MEAG recommendation of 9.6MW will be sold to a third party buyer for 20 years (beginning the Year 2016) to allow for East Point and other MEAG cities in this project to grow into this nuclear generation. The beginning life of the nuclear project will be an operating license from the NRC (Nuclear Regulatory Commission) for 40 years. Our Nuclear generating unit history tells us that this license might also be extended after the original 40 years for another 20 years to make the total life of the project an expected 60 years.

During the 20 years that the output will be sold to third parties on behalf of the City of East Point (Years 2016-2036), the City of East Point will have no payments to make for the project. The third parties under the 20-Year PPA (Purchase Power Agreement) will provide for :

1. Full Cost Recovery of Debt Service, Operation, Maintenance, Decommissioning Costs, etc;

2. An estimated "premium" for the 9.6MW portion of the PPA of $1.5M (NPV of the contract terms stated in Year 2008 dollars) - this premium will be maintained in an interest bearing reserve account on behalf of the City of East Point and provided to the City at the completion of the 20-Year contract to help mitigate future financial obligations when the output of the 9.6MW begins to be received by the City of East Point in the Year 2036.

FACTS AND ISSUES:

· The cost to purchase the recommended 10MW is $62,900,500 over a 20-year period ($4,143,000/year);

· The City can reinvest all or a portion of the $30 million in credits it will begin receiving over the next ten years to defray the future cost of purchasing the 10MW;

· The City can designate all or a portion of annual power sales revenue to an investment fund to defray the future cost of purchasing the 10MW;

· In May 2005, MEAG Power and the other co-owners of Plant Vogtle entered into a joint agreement authorizing the potential expansion of up to two additional nuclear units at Plant Vogtle, expected to come online in 2016 and 2017.

· MEAG Power is entitled to a 22.7% co-ownership of the expansion, but, depending upon the level of interest of Participants, may reduce its level of participation or even totally withdraw from the project at any time prior to July 1, 2008. For this reason, Participant commitments are required by June 15, 2008.

· MEAG Power is currently working with the other co-owners to address permitting and licensing matters. On March 31, 2008, Southern Nuclear filed, on behalf of the co-owners, an application with the Nuclear Regulatory Commission for construction and operating licenses for the new units.

· On April 8, 2008, Georgia Power Company, on behalf of the co-owners, entered into an Engineering, Procurement and Construction agreement with a consortium consisting of Westinghouse and Stone & Webster, Inc. for two AP 1000 nuclear units with 1,100 megawatt capacity. MEAG Power's estimated costs, assuming it elects not to reduce its 22.7% share of the project, including financing expenses is approximately $3.1 billion.

· Each MEAG Power Participant has the option of participating in the proposed expansion project at Plant Vogtle and determining the level, if any, at which it chooses to participate subject to maximum individual levels if the project is over subscribed. Through Power Purchase Agreements (PPAs) each Participant also has the option of laying off any portion of its commitment, until 2036, when additional power may be needed by the Participant.

· On May 12, 2008, MEAG Power entered into PPAs with two buyers to sell up to approximately 71% of MEAG Power's maximum share of output from the additional units for the first 20 years of operation. The contracts require the buyers to pay all operating costs, debt service costs on bonds to be issued, decommissioning costs and certain other payments for the term of the PPA. The amount, if any, to be sold will depend upon whether some or all of the Participants elect to commit all or any portion of their individual entitlements to the PPAs. The PPAs also require the purchasers to pay a premium (in addition to their cost obligation) which, together with the structure of the debt service payments and decommissioning payments, will result in an estimated present value benefit to the PPA Participants in excess of $400 million dollars.

· MEAG Power anticipates that it will establish a separate project to finance the costs associated with that portion, if any, of its interest in the additional units that is not committed to either PPA, and separate projects to finance the costs of each portion, if any, committed to a PPA.

OPTIONS:

1. City Council approval to enter into agreement to purchase 10MW of power in the Plant Vogtle expansion project via the PPA option.

2. City Council declines to participate in the Plant Vogtle expansion Project.

3. City Council defined action.

RECOMMENDED ACTION: Option 1

DEPARTMENT: Office of the City Manager

CONCURRENCE:

Crandall O. Jones, ICMA-CM Date

Interim City Manager

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PLEASE USE EXTENDED POST | Report to Admin

By *Wanda* Jun 2nd 2008 at 3:51 pm EDT

PLEASE USE EXTENDED POST FOR LONG POST.

Nuclear Power equals | Report to Admin

By Michael Whitehead Jun 9th 2008 at 8:00 pm EDT

wealth and asset concentration for the already wealthy. It's as simple as that, folks. The costs of construction and startup and the "externalities" of nuclear fuel waste disposal far exceed the startup costs of wind generation in South Georgia (and many other regions of the country that have sufficient windflow to make it viable), not to mention the much shorter construction-to-power output timeframe of wind (and solar for that matter).

I hope you were successful in beating back this drain on our collective public investment.

Michael

Ann Arbor

Re: Nuclear Power equals | Report to Admin

By Dianne Jul 1st 2008 at 12:02 am EDT

Greetings Michael,
We were successful. After we provided them with more information about the issue, how it would affect their city financially and after receiving a ton of calls and e-mails from the public opposing it, the East Point City Council did not sign the contract with MEAG.

Thank you for your comment.
Peace,
Dianne

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