09
SB31/AP
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
AS PASSED
AS PASSED
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 the
Georgia Public Service Commission to exercise discretion in setting the level of
assistance for senior and low income customers; to provide the commission with
the authority to authorize any specific accounting treatment for the costs
recovered; to provide for review by the commission as to whether the costs
recovered are being properly recorded; to provide for related matters; to
provide for an effective date; 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 as they are recorded in the utility's construction work in progress
accounts pursuant to generally accepted accounting and regulatory principles as
approved by the commission. The financing costs shall be based on the utility's
actual cost of debt, as reflected in its annual surveillance report filed with
the commission, and based on the authorized cost of equity capital and capital
structure as determined by the commission when setting the utility's current
base rates. 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. The
commission shall retain the discretion to consider the effect of this tariff
when setting the level of any senior or low income assistance it may authorize;
provided, however, that the income qualification for such assistance shall be
200 percent of the federal poverty level.
(2)
The commission shall have the authority to authorize any specific accounting
treatment for the costs recovered pursuant to this subsection and to review
whether costs recovered pursuant to this subsection are being properly
recorded.
(3)(A)
For any nuclear generating plant certified by the commission on or 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 plant 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 after January
1, 2009, and 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.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.