April, 29 2009, 04:07pm EDT
New Report Finds CPS Energy Choosing Most Expensive Power Option in South Texas Nuclear Project Expansion
The proposed expansion of the South Texas Nuclear Project (STP) would cost as much as $22 billion, boost the cost of electricity for consumers and curtail investment in energy-efficiency programs and solar power, a report released today by Public Citizen finds.
SAN ANTONIO, Texas
The proposed expansion of the South Texas Nuclear Project (STP) would cost as much as $22 billion, boost the cost of electricity for consumers and curtail investment in energy-efficiency programs and solar power, a report released today by Public Citizen finds.
The report, "Costs of Current and Planned Nuclear Power Plants in Texas: A Consumer Perspective," provides some answers to many of the key questions about CPS Energy's proposed partnership in the STP expansion that municipal candidates have said must be resolved before they can decide what is right for San Antonio.
"We've been down this road before," said Tom "Smitty" Smith, director of Public Citizen's Texas office. "This nuclear expansion will have a significant impact on consumers in San Antonio, and perhaps throughout the Texas market. It is an irresponsible investment."
The report also finds that the massive capital outlays for nuclear power may drain available financial resources needed to pursue San Antonio's visionary Mission Verde project, Mayor Phil Hardberger's aggressive plan to green the city's infrastructure, businesses, energy sources and technology. According to Peggy Day, from the Alamo Group of the Sierra Club, Mission Verde could turn San Antonio into one of the nation's greenest cities, even as it creates nearly 10,000 local and non-local jobs.
"This new report indicates that we're going to have to decide now which energy future we want for San Antonio," said Bexar County Commissioner Tommy Adkisson. "If CPS becomes a partner in the South Texas Project expansion, we are simply not going to have the financial resources to front Mission Verde. We can either choose the most expensive option possible and send our jobs to Bay City and overseas contractors, or pay a fraction of the cost to create thousands of jobs here at home and power the city with clean, green energy."
To estimate the real cost of the STP expansion, report author Clarence Johnson, an independent consultant with 25 years of experience in the electric utility regulatory world, investigated the construction and cost history of the original power plant. Johnson also served as the director of regulatory analysis for the Texas Office of Public Utility Counsel and has presented expert testimony in nearly 100 regulatory proceedings on a wide range of issues, including generation capacity expansion.
The report finds that given the history of cost overruns and delays from the last generation of nuclear power plants, the construction cost and schedule for STP ($5.8 billion with a four year completion time) are incredibly optimistic. Most nuclear power plants built in the 1970s and 1980s left a legacy of cost overruns and construction delays, but coming on line seven years after the proposed construction date and four and a half times over budget, STP, which was completed in 1989, was among the worst.
"Studies produced by the NRC itself have found that things went as poorly as they did due to the inexperience of the project team," Johnson said. "The single most important factor in assuring quality and timeliness in nuclear power plant construction is prior nuclear construction experience. Unfortunately, NRG Energy, the company building STP, lacks that crucial experience. Given the fact that no new nuclear power plants have been built in the U.S. in two decades, NRG is unlikely to find seasoned nuclear personnel, engineers or project leaders this time around."
The report also finds that the current low cost of nuclear fuel in Texas does not tell the whole story of its real impact on ratepayers. Consumers continue to pay for cost overruns and budget shortfalls from STP's bungled and hugely expensive construction through charges on their utility bills. Customers in the Electric Reliability Council of Texas (ERCOT) continue to pay $3.4 billion for nuclear assets through these transition charges, as well as $45 million a year for nuclear decommissioning, the process of safely retiring, dismantling and storing the waste from a nuclear power plant.
"Consumers pick up the tab when these nuclear power plants go over budget," said Eric Lane, representative of the Consumer Energy Coalition. "We're still paying legacy costs for STP and are helping NRG save up for when that plant has to be decommissioned. When the time comes, if NRG hasn't collected enough money to pay for decommissioning costs, it will just keep charging ratepayers even after the plant ceases to produce electricity. We really need to be looking at what San Antonio is going to have to pay for its share of this $20 billion."
Another hidden cost for ratepayers exists in the form of nuclear subsidies. The nuclear industry has been very successful at securing federal subsidies for this new wave of nuclear projects in the form of loan guarantees, production tax credits, investment tax credits and insurance. Of these, loan guarantees impose the greatest risk on taxpayers. The Congressional Budget Office has stated that the likelihood of default on these loans is 50 percent or greater. In the last wave of nuclear power plant construction, at least 40 nuclear power plants were abandoned prior to completion - proof that the risk to taxpayers is real and substantial.
NRG also already holds a dominant market share of the ERCOT market. If STP is expanded as proposed, NRG will have the even greater potential to exercise market power and drive up generation prices to reduce the losses that will result from inevitable cost overruns and construction delays. The high cost of nuclear capacity could indirectly translate into higher power prices for all Texas consumers.
Finally, the report finds that nuclear energy is uneconomical when compared to other alternative sources of power generation. A new nuclear plant will be 50 percent more expensive over its life than the primary conventional alternative, combined cycle gas generation. This runs squarely against industry claims that nuclear power represents the cheapest energy source available.
"Even when compared with renewable energy sources such as wind and solar, nuclear power simply does not measure up," said David Foster, director of Clean Water Action. "But energy efficiency is by far our most cost effective resource. For just 15 percent of what we would spend on STP, Texas could save as much energy as would be provided by 14 new nuclear reactors. We don't need to generate massive amounts of new energy when we can use less for just a fraction of the cost."
To download the full report, a fact sheet of its major findings and a chronology of STP, visit https://www.citizen.org/texas.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Critics Blast 'Reckless and Impossible' Bid to Start Operating Mountain Valley Pipeline
"The time to build more dirty and dangerous pipelines is over," said one environmental campaigner.
Apr 23, 2024
Environmental defenders on Tuesday ripped the company behind the Mountain Valley Pipeline for asking the federal government—on Earth Day—for permission to start sending methane gas through the 303-mile conduit despite a worsening climate emergency caused largely by burning fossil fuels.
Mountain Valley Pipeline LLC sent a letter Monday to Federal Energy Regulatory Commission (FERC) Acting Secretary Debbie-Anne Reese seeking final permission to begin operation on the MVP next month, even while acknowledging that much of the Virginia portion of the pipeline route remains unfinished and developers have yet to fully comply with safety requirements.
"In a manner typical of its ongoing disrespect for the environment, Mountain Valley Pipeline marked Earth Day by asking FERC for authorization to place its dangerous, unnecessary pipeline into service in late May," said Jessica Sims, the Virginia field coordinator for Appalachian Voices.
"MVP brazenly asks for this authorization while simultaneously notifying FERC that the company has completed less than two-thirds of the project to final restoration and with the mere promise that it will notify the commission when it fully complies with the requirements of a consent decree it entered into with the Pipeline and Hazardous Materials Safety Administration last fall," she continued.
"Requesting an in-service decision by May 23 leaves the company very little time to implement the safety measures required by its agreement with PHMSA," Sims added. "There is no rush, other than to satisfy MVP's capacity customers' contracts—a situation of the company's own making. We remain deeply concerned about the construction methods and the safety of communities along the route of MVP."
Russell Chisholm, co-director of the Protect Our Water, Heritage, Rights (POWHR) Coalition—which called MVP's request "reckless and impossible"—said in a statement that "we are watching our worst nightmare unfold in real-time: The reckless MVP is barreling towards completion."
"During construction, MVP has contaminated our water sources, destroyed our streams, and split the earth beneath our homes. Now they want to run methane gas through their degraded pipes and shoddy work," Chisholm added. "The MVP is a glaring human rights violation that is indicative of the widespread failures of our government to act on the climate crisis in service of the fossil fuel industry."
POWHR and activists representing frontline communities affected by the pipeline are set to take part in a May 8 demonstration outside project financier Bank of America's headquarters in Charlotte, North Carolina.
Appalachian Voices noted that MVP's request comes days before pipeline developer Equitrans Midstream is set to release its 2024 first-quarter earnings information on April 30.
MVP is set to traverse much of Virginia and West Virginia, with the Southgate extension running into North Carolina. Outgoing U.S. Sen. Joe Manchin (D-W.Va.) and other pipeline proponents fought to include expedited construction of the project in the debt ceiling deal negotiated between President Joe Biden and congressional Republicans last year.
On Monday, climate and environmental defenders also petitioned the U.S. Court of Appeals for the D.C. Circuit, challenging FERC's approval of the MVP's planned Southgate extension, contending that the project is so different from original plans that the government's previous assent is now irrelevant.
"Federal, state, and local elected officials have spoken out against this unneeded proposal to ship more methane gas into North Carolina," said Sierra Club senior field organizer Caroline Hansley. "The time to build more dirty and dangerous pipelines is over. After MVP Southgate requested a time extension for a project that it no longer plans to construct, it should be sent back to the drawing board for this newly proposed project."
David Sligh, conservation director at Wild Virginia, said: "Approving the Southgate project is irresponsible. This project will pose the same kinds of threats of damage to the environment and the people along its path as we have seen caused by the Mountain Valley Pipeline during the last six years."
"FERC has again failed to protect the public interest, instead favoring a profit-making corporation," Sligh added.
Others renewed warnings about the dangers MVP poses to wildlife.
"The endangered bats, fish, mussels, and plants in this boondoggle's path of destruction deserve to be protected from killing and habitat destruction by a project that never received proper approvals in the first place," Center for Biological Diversity attorney Perrin de Jong said. "Our organization will continue fighting this terrible idea to the bitter end."
Keep ReadingShow Less
'Seismic Win for Workers': FTC Bans Noncompete Clauses
Advocates praised the FTC "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
Apr 23, 2024
U.S. workers' rights advocates and groups celebrated on Tuesday after the Federal Trade Commission voted 3-2 along party lines to approve a ban on most noncompete clauses, which Democratic FTC Chair Lina Khansaid "keep wages low, suppress new ideas, and rob the American economy of dynamism."
"The FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market," Khan added, pointing to the commission's estimates that the policy could mean another $524 for the average worker, over 8,500 new startups, and 17,000 to 29,000 more patents each year.
As Economic Policy Institute (EPI) president Heidi Shierholz explained, "Noncompete agreements are employment provisions that ban workers at one company from working for, or starting, a competing business within a certain period of time after leaving a job."
"These agreements are ubiquitous," she noted, applauding the ban. "EPI research finds that more than 1 out of every 4 private-sector workers—including low-wage workers—are required to enter noncompete agreements as a condition of employment."
The U.S. Chamber of Commerce has suggested it plans to file a lawsuit that, as The American Prospectdetailed, "could more broadly threaten the rulemaking authority the FTC cited when proposing to ban noncompetes."
Already, the tax services and software provider Ryan has filed a legal challenge in federal court in Texas, arguing that the FTC is unconstitutionally structured.
Still, the Democratic commissioners' vote was still heralded as a "seismic win for workers." Echoing Khan's critiques of such noncompetes, Public Citizen executive vice president Lisa Gilbert declared that such clauses "inflict devastating harms on tens of millions of workers across the economy."
"The pervasive use of noncompete clauses limits worker mobility, drives down wages, keeps Americans from pursuing entrepreneurial dreams and creating new businesses, causes more concentrated markets, and keeps workers stuck in unsafe or hostile workplaces," she said. "Noncompete clauses are both an unfair method of competition and aggressively harmful to regular people. The FTC was right to tackle this issue and to finalize this strong rule."
Morgan Harper, director of policy and advocacy at the American Economic Liberties Project, praised the FTC for "listening to the comments of thousands of entrepreneurs and workers of all income levels across industries" and finalizing a rule that "is a clear-cut win."
Demand Progress' Emily Peterson-Cassin similarly commended the commission "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
While such agreements are common across various industries, Teófilo Reyes, chief of staff at the Restaurant Opportunities Centers United, said that "many restaurant workers have been stuck at their job, earning as low as $2.13 per hour, because of the noncompete clause that they agreed to have in their contract."
"They didn't know that it would affect their wages and livelihood," Reyes stressed. "Most workers cannot negotiate their way out of a noncompete clause because noncompetes are buried in the fine print of employment contracts. A full third of noncompete clauses are presented after a worker has accepted a job."
Student Borrower Protection Center (SBPC) executive director Mike Pierce pointed out that the FTC on Tuesday "recognized the harmful role debt plays in the workplace, including the growing use of training repayment agreement provisions, or TRAPs, and took action to outlaw TRAPs and all other employer-driven debt that serve the same functions as noncompete agreements."
Sandeep Vaheesan, legal director at Open Markets Institute, highlighted that the addition came after his group, SBPC, and others submitted comments on the "significant gap" in the commission's initial January 2023 proposal, and also welcomed that "the final rule prohibits both conventional noncompete clauses and newfangled versions like TRAPs."
Jonathan Harris, a Loyola Marymount University law professor and SBPC senior fellow, said that "by also banning functional noncompetes, the rule stays one step ahead of employers who use 'stay-or-pay' contracts as workarounds to existing restrictions on traditional noncompetes. The FTC has decided to try to avoid a game of whack-a-mole with employers and their creative attorneys, which worker advocates will applaud."
Among those applauding was Jean Ross, president of National Nurses United, who said that "the new FTC rule will limit the ability of employers to use debt to lock nurses into unsafe jobs and will protect their role as patient advocates."
Angela Huffman, president of Farm Action, also cheered the effort to stop corporations from holding employees "hostage," saying that "this rule is a critical step for protecting our nation's workers and making labor markets fairer and more competitive."
Keep ReadingShow Less
'Discriminatory' North Carolina Law Criminalizing Felon Voting Struck Down
One plaintiffs' attorney said the ruling "makes our democracy better and ensures that North Carolina is not able to unjustly criminalize innocent individuals with felony convictions who are valued members of our society."
Apr 23, 2024
Democracy defenders on Tuesday hailed a ruling from a U.S. federal judge striking down a 19th-century North Carolina law criminalizing people who vote while on parole, probation, or post-release supervision due to a felony conviction.
In Monday's decision, U.S. District Judge Loretta C. Biggs—an appointee of former Democratic President Barack Obama—sided with the North Carolina A. Philip Randolph Institute and Action NC, who argued that the 1877 law discriminated against Black people.
"The challenged statute was enacted with discriminatory intent, has not been cleansed of its discriminatory taint, and continues to disproportionately impact Black voters," Biggs wrote in her 25-page ruling.
Therefore, according to the judge, the 1877 law violates the U.S. Constitution's equal protection clause.
"We are ecstatic that the court found in our favor and struck down this racially discriminatory law that has been arbitrarily enforced over time," Action NC executive director Pat McCoy said in a statement. "We will now be able to help more people become civically engaged without fear of prosecution for innocent mistakes. Democracy truly won today!"
Voting rights tracker Democracy Docket noted that Monday's ruling "does not have any bearing on North Carolina's strict felony disenfranchisement law, which denies the right to vote for those with felony convictions who remain on probation, parole, or a suspended sentence—often leaving individuals without voting rights for many years after release from incarceration."
However, Mitchell Brown, an attorney for one of the plaintiffs, said that "Judge Biggs' decision will help ensure that voters who mistakenly think they are eligible to cast a ballot will not be criminalized for simply trying to reengage in the political process and perform their civic duty."
"It also makes our democracy better and ensures that North Carolina is not able to unjustly criminalize innocent individuals with felony convictions who are valued members of our society, specifically Black voters who were the target of this law," Brown added.
North Carolina officials have not said whether they will appeal Biggs' ruling. The state Department of Justice said it was reviewing the decision.
According to Forward Justice—a nonpartisan law, policy, and strategy center dedicated to advancing racial, social, and economic justice in the U.S. South, "Although Black people constitute 21% of the voting-age population in North Carolina, they represent 42% of the people disenfranchised while on probation, parole, or post-release supervision."
The group notes that in 44 North Carolina counties, "the disenfranchisement rate for Black people is more than three times the rate of the white population."
"Judge Biggs' decision will help ensure that voters who mistakenly think they are eligible to cast a ballot will not be criminalized for simply trying to re-engage in the political process and perform their civic duty."
In what one civil rights leader called "the largest expansion of voting rights in this state since the 1965 Voting Rights Act," a three-judge state court panel voted 2-1 in 2021 to restore voting rights to approximately 55,000 formerly incarcerated felons. The decision made North Carolina the only Southern state to automatically restore former felons' voting rights.
Republican state legislators appealed that ruling to the North Carolina Court of Appeals, which in 2022 granted their request for a stay—but only temporarily, as the court allowed a previous injunction against any felony disenfranchisement based on fees or fines to stand.
However, last April the North Carolina Supreme Court reversed the three-judge panel decision, stripping voting rights from thousands of North Carolinians previously convicted of felonies. Dissenting Justice Anita Earls opined that "the majority's decision in this case will one day be repudiated on two grounds."
"First, because it seeks to justify the denial of a basic human right to citizens and thereby perpetuates a vestige of slavery, and second, because the majority violates a basic tenant of appellate review by ignoring the facts as found by the trial court and substituting its own," she wrote.
As similar battles play out in other states, Democratic U.S. lawmakers led by Rep. Ayanna Pressley of Massachusetts and Sen. Peter Welch of Vermont in December introduced legislation to end former felon disenfranchisement in federal elections and guarantee incarcerated people the right to vote.
Currently, only Maine, Vermont, and the District of Columbia allow all incarcerated people to vote behind bars.
Keep ReadingShow Less
Most Popular