CIB 08/12/2013

Legislators who helped protect NC’s renewable energy law get a public “thanks”–plus more news, this week inCIB:

Campaign Watch: Thanks Again

Two weeks ago, CIB noted the ‘issue ads’ being run by a national environmental group thanking U.S. Sen. Kay Hagan (D-NC) for her support of Gina McCarthy’s nomination to head the EPA. Last week, a state-level clean energy group kicked off ads offering a similar public thanks to N.C. state legislators who helped kill a bad energy bill.

The N.C. Sustainable Energy Association (NCSEA) is running television ads saying “thanks” to 23 state legislators for helping to block bills to repeal the Renewable Energy Portfolio Standard (REPS). The ads cover 12 Senators and 11 Representatives (14 Republicans, nine Democrats). According to the Raleigh News & Observer, the campaign will cost about $150,000 for two weeks of 30-second TV ads and a complimentary three-week online ad campaign.

Ads of this nature are not legally considered “campaign expenditures”, especially when they take place so far in advance of the next election. In fact, however, the ads can serve a prophylactic function against anticipated attack ads from hostile interest groups during the actual election campaign.

Nuclear Update: Duke Passes the Buck…or the Bills

Last week we noted a Nuclear Regulatory Commission (NRC) setback for Duke Energy’s proposed new Lee nuclear plant in upstate South Carolina. This week, we’re passing along a reminder that–because of recent changes to NC’s utilities financing laws–you as electric consumers are already on the hook for a growing pile of expenses for that plant anyway.

An article in the Charlotte Observer last week pointed out that Florida electric consumers have already paid $743 million in costs for the Levy County nuclear plant on which Duke canceled its engineering contract. Those consumers are likely to be stuck paying another $939 million for that canceled plant–$41 a year for the average customer through 2017. Meanwhile, Duke has already spent $350 million on the postponed Lee nuke in South Carolina, and it plans to ask ratepayers in the Carolinas to cover all of that, plus anything else it spends on ‘pre-construction’ costs–even if the plant is never built.

For the privilege of paying billions for proposed nuclear plants that are never completed or used, North Carolina electric consumers can thank the N.C. state legislature. In 2007, the General Assembly reversed a state law which since 1982 had protected consumers from being billed for most of the costs of uncompleted power plant construction. Duke is now in the process of arguing that the legislature should go even further, and allow it to charge consumers for those unfinished plant costs without even going through a general rate case.

Like many nuclear power advocates, Duke believes that the risks of nuclear maybe-or-maybe-not construction should fall on the public, not their stockholders. After all, electric customers (unlike stockholders) are captive audiences who can’t just sell and walk away…or fire company executives who make reckless decisions with their money.

Education & Resources: Strong Winds

The U.S. Energy Department last week released reports indicating that power production from wind energy, as well as domestic manufacture of wind turbine components, reached record highs last year in the United States.

The Wind Technologies Market Report for 2012 indicates that total U.S. wind power generating capacity passed 60 gigawatts (GW) (enough electricity to power 15 million homes). Over 13 GW of wind power capacity was added in the U.S. in 2012–more than 90% more than the amount added in 2011, and more than in any other nation in 2012. Of the wind turbine equipment installed at U.S. wind farms in 2012, 72% was manufactured in the United States.

Further information and links to the reports can be found here.

Conservationists: Birds’ Eye Views

Congratulations go to two North Carolinians for their National Audubon Society major award wins last month. Volunteer Lena Gallitano of Raleigh was recognized for her work on projects including the North Carolina Birding Trail. At the same national Audubon convention, Audubon NC deputy director Walker Golder of Wilmington received the national group’s highest professional award for 2013. Among his responsibilities, Golder oversees the North Carolina Coastal Islands sanctuary system. Good work both!

That’s our report for this week.

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