09 LC 36
1203
Senate
Bill 31
By:
Senators Balfour of the 9th, Tarver of the 22nd, Rogers of the 21st, Powell of
the 23rd, Tolleson of the 20th and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
enact the "Georgia Nuclear Energy Financing Act"; to amend Code Section 46-2-25
of the Official Code of Georgia Annotated, relating to the procedure for
changing any rate, charge, classification, or service, so as to provide for a
utility to recover from its customers the costs of financing associated with the
construction of a nuclear generating plant; to provide a short title; to provide
for the calculation and collection of the financing costs; to provide for review
by the Georgia Public Service Commission as to whether the costs recovered are
being properly recorded; to provide for related matters; to repeal conflicting
laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
This
Act shall be known and may be cited as the "Georgia Nuclear Energy Financing
Act."
SECTION
2.
Code
Section 46-2-25 of the Official Code of Georgia Annotated, relating to the
procedure for changing any rate, charge, classification, or service, is amended
by adding a new subsection as follows:
"(c.1)(1)
Notwithstanding any provision to the contrary, a utility shall recover from its
customers, as provided in this subsection, the costs of financing associated
with the construction of a nuclear generating plant which has been certified by
the commission. The financing charges shall accrue on all applicable certified
costs which are recorded in Federal Energy Regulatory Commission Account 107 or
such similar account as may be established by the Federal Energy Regulatory
Commission or the commission from time to time and shall accrue at the utility's
average weighted cost of capital. These financing costs shall be recovered from
each customer through a separate rate tariff and allocated on an equal
percentage basis to standard base tariffs which are designed to collect embedded
capacity costs.
(2)
The commission shall have the authority to review whether costs recovered
pursuant to this subsection are being properly recorded, but the costs recovered
pursuant to this subsection shall neither be considered as revenue requirements
nor be used to affect the outcome in any general rate case in which the utility
is involved.
(3)(A)
Except as provided in subparagraph (B) of this paragraph, for any nuclear
generating plant certified by the commission after July 1, 2009, the utility may
begin recovering the costs of financing the construction of the nuclear
generating plant at any time within five years after the date on which such
nuclear generating plan is certified. Any such costs incurred between the time
the plant is certified and the time the utility begins recovering its cost shall
be accrued, capitalized, and included in the balance of the account and then
amortized over the next five years following the date on which the utility
begins recovering the costs of financing the construction and shall be recovered
with one-fifth of those deferred costs being recovered each year for five
years.
(B)
For any nuclear generating plant certified by the commission on or before July
1, 2009, the utility shall begin recovering on January 1, 2011, any costs of
financing the construction of the nuclear generating plant. Any such costs
incurred prior to January 1, 2011, shall be accrued, capitalized, and
included in the balance of the account and then amortized over the next five
years following January 1, 2011, and shall be recovered with one-fifth of those
deferred costs being recovered each year for five years.
(4)
The costs recoverable pursuant to this subsection shall be recalculated and the
level of the charges reset annually if necessary to reflect the level of
construction costs expected to be incurred in the next 12 months consistent with
the certificate and the financing costs expected to be incurred for the next 12
months together with a balanced accounting of actual expenditures and financing
costs incurred in the preceding period.
(5)
The financing costs associated with a nuclear generating plant which has been
certified by the commission shall continue to be recovered between the time that
the generating plant begins commercial operation and until the next general rate
case filed by the utility becomes effective, at which time the financing costs
being collected for any generating plants which are then in commercial operation
shall be included in the general revenue requirements of the utility and
collected in the general base rates of the
utility."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.