Georgia’s Monthly Electricity Costs in Context

Georgia’s Monthly Electricity Costs in Context

A few months back Wallet Hub published a report ranking each state on monthly energy costs. The categories included total energy cost, monthly electricity cost, monthly natural gas cost, monthly fuel cost and monthly home heating cost. Georgia was ranked as having the third highest monthly energy cost—a point that has gotten some attention the past few weeks, yet deserves context and clarification.

I’ve been very forward in pointing out that the state of Georgia has some of the lowest electricity rates in the country and that the new units under construction at Plant Vogtle are critical long-term assets for keeping those rates affordable while maintaining reliability and hedging against a future carbon tax (Figure 1; Gattie Link 1; Gattie Link 2; Gattie Link 3; Gattie Link 4). Consequently, I’ve had a few folks ask how these low electricity rates result in Georgia having the third highest energy costs among all states, as reported in the Wallet Hub study. It’s a fair question, but it needs to be clarified that the characterization of Georgia having the third highest monthly energy costs is in reference to total energy consumption. This includes electricity, natural gas, home heating oil and gasoline. When considering electricity only, the Wallet Hub report lists Georgia as having the fourth highest monthly electricity costs. However, the Energy Information Administration reported in its November 2017 compilation of average monthly residential bills that Georgia ranked as having the ninth highest monthly electricity bills (Table 3, at end of this blog). Nonetheless, a more detailed explanation is warranted given the fact that Georgia does indeed have, and historically has had, residential rates that are consistently below the national average and below those in other states with high GDPs (Figure 1, below; Gattie Link 5).

Figure 1. Electricity rates for the current top 15 GDPs since 1990.

Continue reading “Georgia’s Monthly Electricity Costs in Context”

California Has Decided Its Energy Future: Now It’s Georgia’s Turn

California Has Decided Its Energy Future:
Now It’s Georgia’s Turn

A couple of weeks ago, California Governor Jerry Brown signed into law a bill that sets California on the path toward generating all of the state’s electricity from clean sources. The word “clean” is somewhat of a hedge as it leaves the window cracked open for nuclear power to be included in this zero-carbon objective. However, California’s recent history all but points to their real objective of 100% renewable energy since the state recently voted to shut down its last remaining nuclear plant, Diablo Canyon, and subsequently passed legislation requiring that Diablo’s generation be offset by zero-carbon resources.

The California dream is 100% renewable energy—zero coal, zero natural gas and zero nuclear. Moreover, Governor Brown hopes that California’s 100% clean energy bill will serve as a model for other state and national governments and will “wake up the national leaders” on the need to confront climate change.

Meanwhile, on the other side of the country, the lone U.S. nuclear construction project at Plant Vogtle faces a critical vote on Monday, September 24. Continue reading “California Has Decided Its Energy Future: Now It’s Georgia’s Turn”

Georgia & California: Two States, Two Different Ideologies on Energy Policy

Georgia & California:
Two States, Two Completely Different Ideologies on Energy Policy

(Full Op-ed is in The Hill )

California’s recent decision to mandate solar PV on all new home construction and Georgia’s commitment to completing construction of two new nuclear reactors at Plant Vogtle represent two completely opposite approaches to investing in zero-carbon energy resources. Solar and renewable advocates will no doubt applaud California for taking such unprecedented action to battle global climate change by way of its solar mandate and other renewable energy efforts. However, if California is applauded, Georgia certainly deserves applause for fighting that same battle, yet also making critical contributions to national security with new nuclear power construction at Vogtle.

This reflects the right of individual states to govern their energy policy under the auspices of their respective state leadership. It also reflects the reality that the U.S. remains locked in a battle of ideas among various states as to how the nation’s electric power sector should be organized in order to meet the multiple objectives of reliability, affordability, safety, carbon reduction and national security.

While this battle may be inevitable due to divergent ideologies across state lines, it is imprudent and altogether unnecessary for U.S. nuclear power to become a casualty in that battle because the prospect of an America without nuclear power not only calls into question whether the U.S. can meet low-carbon objectives reliably and affordably, it also represents national security risks with which America should never experiment.