State Sen. Buddy Carter revived a bill on Thursday that would allow private property owners in Georgia to buy power generated on their own land by a third party.
Such arrangements are routine in other states but prohibited in Georgia, where the state’s main electric supplier, Georgia Power, opposes them.
Carter originally introduced the idea of third party power purchase agreements in SB 401 on Feb. 7. But instead of that bill being sent to the Regulated Industries Committee where the Pooler Republican said he felt the chairman would be favorable to it, the bill was sent to the Natural Resources Committee.
“I requested a hearing but it has not been granted,” Carter said Thursday morning. “We have until the 30th day (of the session) to get it to cross. It doesn’t look promising.”
To revive his bill, Carter tacked it onto to one already sent to the Regulated Industries Committee — SB 459, which would allow consumers to opt-out of smart meters like the ones Georgia Power is currently installing in Savannah. The committee held a hearing on the bill Thursday, ultimately tabling it, and saying they wanted more information about how power purchase agreements work in other states.
Carter was elated.
“It’s out there now and people are aware of it,” he said. It’s getting media attention. I feel good about it.”
Carter’s interest in third party power purchase agreements came from constituent Dr. Sidney Smith. The Savannah dermatologist is a long-time proponent of solar who in January hooked up a pole-mounted solar array at Savannah’s Driftaway Cafe. The company Smith started with Brunswick pathologist Pat Godbey, Lower Rates for Customers LLC, has agreed to sell the power produced there directly to the cafe at a rate 1 percent below that of Georgia Power.
At the time, Smith said he was expecting legal action from Georgia Power. In fact, he named his company with that action in mind, relishing the anticipated lawsuit name: Georgia Power vs. Lower Rates for Customers. This month the company powered up a medical office in Richmond Hill.
Georgia Power spokeswoman Lynn Wallace said Thursday she was unaware of any legal action the company had taken against Smith. She reiterated why the company opposed the bill, which was proposed by Carter, three other Republicans including Senate President Pro Tem Tommie Williams of Lyons, and two Democrats.
“We still oppose the bill whether it’s in SB 401 or a different bill because our position is it would lead to higher rates and compromised reliability for all our customers not just customers participating in agreements with a third party,” Wallace said. “Essentially solar is an intermittent resource. Because it’s regulated by the Public Service Commission we have an obligation to serve all our customers whether solar is available or not. If the solar provider doesn’t have service we’re still obligated to serve. The cost would be spread out.”
Wallace said the additional cost comes from having to maintain infrastructure such as transmission and distribution lines whether they’re being fully used all the time or not. The arrangements could also potentially jeopardize the safety of utility crews, she said.
Yet in only four states — Georgia, Florida, North Carolina and Kentucky — are third party power purchase agreements disallowed, according to the U.S. Department of Energy.
Wallace said electricity rates are typically higher in Northeastern states that allow the agreements.
But several Southwestern and Western states that allow them, such as New Mexico, Colorado, Oregon and Arizona, post retail rates lower than or comparable to Georgia, according to the information from the federal Energy Information Administration.
Solar power advocates note that Georgia Power doesn’t raise these same objections to solar in general, just solar from a third party purchase agreement.
“This already happens if a consumer plunks down $20,000 for solar power, and Georgia Powers’ concerns aren’t present,” said Colleen Kiernan, Georgia chapter director of the Sierra Club. “This is just different financing. This is probably a benefit to the ratepayers because solar saves the most expensive electricity, which is the peak on hot days when the sun is shining.”
While solar has become the focus of the bill, it would also allow third party generation by fuel cell, hydropower, wind turbine; or a generator fueled by biomass, municipal solid waste or landfill gas.
For Carter, the issue comes down to personal property rights.
“You can buy a solar panel and install it. You would recognize the savings that makes that an attractive thing. You can borrow money to buy and install solar. What you can’t do is have a third party come in and install (and sell the power to you). That’s what we’re trying to do with this bill.”
SOURCE: http://savannahnow.com/exchange/2012-02-24/solar-bill-jolted-back-life#.T15pfvVfE4k
Such arrangements are routine in other states but prohibited in Georgia, where the state’s main electric supplier, Georgia Power, opposes them.
Carter originally introduced the idea of third party power purchase agreements in SB 401 on Feb. 7. But instead of that bill being sent to the Regulated Industries Committee where the Pooler Republican said he felt the chairman would be favorable to it, the bill was sent to the Natural Resources Committee.
“I requested a hearing but it has not been granted,” Carter said Thursday morning. “We have until the 30th day (of the session) to get it to cross. It doesn’t look promising.”
To revive his bill, Carter tacked it onto to one already sent to the Regulated Industries Committee — SB 459, which would allow consumers to opt-out of smart meters like the ones Georgia Power is currently installing in Savannah. The committee held a hearing on the bill Thursday, ultimately tabling it, and saying they wanted more information about how power purchase agreements work in other states.
Carter was elated.
“It’s out there now and people are aware of it,” he said. It’s getting media attention. I feel good about it.”
Carter’s interest in third party power purchase agreements came from constituent Dr. Sidney Smith. The Savannah dermatologist is a long-time proponent of solar who in January hooked up a pole-mounted solar array at Savannah’s Driftaway Cafe. The company Smith started with Brunswick pathologist Pat Godbey, Lower Rates for Customers LLC, has agreed to sell the power produced there directly to the cafe at a rate 1 percent below that of Georgia Power.
At the time, Smith said he was expecting legal action from Georgia Power. In fact, he named his company with that action in mind, relishing the anticipated lawsuit name: Georgia Power vs. Lower Rates for Customers. This month the company powered up a medical office in Richmond Hill.
Georgia Power spokeswoman Lynn Wallace said Thursday she was unaware of any legal action the company had taken against Smith. She reiterated why the company opposed the bill, which was proposed by Carter, three other Republicans including Senate President Pro Tem Tommie Williams of Lyons, and two Democrats.
“We still oppose the bill whether it’s in SB 401 or a different bill because our position is it would lead to higher rates and compromised reliability for all our customers not just customers participating in agreements with a third party,” Wallace said. “Essentially solar is an intermittent resource. Because it’s regulated by the Public Service Commission we have an obligation to serve all our customers whether solar is available or not. If the solar provider doesn’t have service we’re still obligated to serve. The cost would be spread out.”
Wallace said the additional cost comes from having to maintain infrastructure such as transmission and distribution lines whether they’re being fully used all the time or not. The arrangements could also potentially jeopardize the safety of utility crews, she said.
Yet in only four states — Georgia, Florida, North Carolina and Kentucky — are third party power purchase agreements disallowed, according to the U.S. Department of Energy.
Wallace said electricity rates are typically higher in Northeastern states that allow the agreements.
But several Southwestern and Western states that allow them, such as New Mexico, Colorado, Oregon and Arizona, post retail rates lower than or comparable to Georgia, according to the information from the federal Energy Information Administration.
Solar power advocates note that Georgia Power doesn’t raise these same objections to solar in general, just solar from a third party purchase agreement.
“This already happens if a consumer plunks down $20,000 for solar power, and Georgia Powers’ concerns aren’t present,” said Colleen Kiernan, Georgia chapter director of the Sierra Club. “This is just different financing. This is probably a benefit to the ratepayers because solar saves the most expensive electricity, which is the peak on hot days when the sun is shining.”
While solar has become the focus of the bill, it would also allow third party generation by fuel cell, hydropower, wind turbine; or a generator fueled by biomass, municipal solid waste or landfill gas.
For Carter, the issue comes down to personal property rights.
“You can buy a solar panel and install it. You would recognize the savings that makes that an attractive thing. You can borrow money to buy and install solar. What you can’t do is have a third party come in and install (and sell the power to you). That’s what we’re trying to do with this bill.”
SOURCE: http://savannahnow.com/exchange/2012-02-24/solar-bill-jolted-back-life#.T15pfvVfE4k
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