A recent article in the New York Times that analyzed retail electricity costs in the states with deregulated markets vs. the states with regulated markets found that costs have risen faster and remained higher for more than two decades in the deregulated states.

In the U.S., 35 states have electricity markets that are either partially or fully deregulated — that is, they have allowed separate companies to handle some or all aspects of the generation, transmission and retail distribution of electricity. Georgia, of course, remains one of the 15 states that have not deregulated its vertically integrated utility model.

The Times analysis — conducted by an energy researcher and consultant — found that, on average, retail ratepayers in a deregulated market pay $40 more per month for electricity than those in the states with a regulated market. The analysis also found that those higher rates date back as far as 1998, and that wholesale rates, too, tend to be higher in deregulated markets.

According to the article, one main reason for the higher rates in deregulated markets is that utilities must build out transmission infrastructure to carry electricity from far-flung generating locations, passing that cost along to ratepayers without much oversight by regulators.

The push toward deregulation gained steam in the 1990s, disrupting the traditional regulated monopoly model of vertically integrated electric utilities. The grand idea underpinning the push toward deregulation was that increased competition would lead to cheaper electricity.

Instead, not only have rates increased faster in deregulated markets, but numerous systemic failures have also happened in these deregulated markets. Most notably in recent years, both California and Texas have suffered through blackouts and weather-related outages on a massive scale.

The NYT article is titled: “Why Are Energy Prices So High? Some Experts Blame Deregulation.” Subscribers can access the full article here.

In November, MEAG Power held the 28th annual Mayors Summit, a forum where Participant Mayors and/or Board/Commission Chairs and their designees can share experiences, discuss the political, economic and operating environments, and build on the relationships that are the foundation of the MEAG Power family.

Considering all that had transpired in the world over the prior year, in the economy, in public affairs and in legislation, there was much to discuss at the 2022 Mayors Summit.

Ongoing supply chain disruptions. Rampant inflation. Worldwide energy supply effects from the war in Ukraine. Domestic natural gas price spikes and energy cost increases. Landmark clean energy legislation and its potential impact on public power. All of these and more are areas of interest and concern.

The program’s speakers provided an array of knowledge and insight to help Participant and MEAG Power leaders prepare for what is to come. MEAG Power leadership and staff greatly value the insight and input from MEAG Power Participant Mayors and/or Board/Commission Chairs in helping MEAG Power leadership and staff formulate the appropriate approaches to dealing with these and numerous other major issues of the day.

The presentations from the Mayors Summit included:

MEAG Power Business Review – Jim Fuller, MEAG Power president & CEO

The View From APPA: The Outlook for Public Power – Joy Ditto, president & CEO, The American Public Power Association

Energy Industry Outlook and Trends – Robert Bryce, a Texas-based author, journalist, film producer, and public speaker

The National Political Outlook – Nathan Gonzales, editor & publisher, Inside Elections with Nathan L. Gonzales

NOTE: The presentations are posted on the password-protected event page on the MEAG Power website. If you would like to access the presentations and did not attend the event, please email us at events@meagpower.org to receive the password. (If you attended Mayors Summit, please use the previously provided password.)

After six meetings across four months, the Georgia Legislature’s Joint Study Committee on the Electrification of Transportation approved several recommendations but failed to come to a consensus on some of the most contentious issues surrounding the transition to EVs.

The recommendations, which could help direct legislation during the biennial session that starts in January, cover some of the basic infrastructure issues and include:

• Requiring commercial EV charging stations to charge by the kilowatt hour instead of the current protocol of charging based on the time spent connected to a charger. This requirement recognizes the fact that some chargers take longer than others to provide the same level of charge.
• Requiring state licensing and inspection of commercial charging stations, with the suggestion that the Georgia Department of Agriculture be responsible. The Department of Agriculture’s Fuel and Measures Division handles this function for the state’s gas pumps, as well as pumps for other fuels.
• Making any future tax on EVs mileage-based, to equate with the amount drivers of gas-powered cars pay in gasoline taxes. Georgia drivers pay 29 cents a gallon in state gas taxes and 18 cents in federal taxes. (The state gas tax remains suspended under the Governor’s orders.) Gas taxes pay for roadway construction and maintenance.
• The Georgia Department of Transportation (GDOT) in 2023 will launch a voluntary mileage-fee pilot program. The study committee recommended that GDOT report its findings by the end of the year.

One main issue on which the study committee could not reach a consensus was the question of allowing utilities into the charging station business. Convenience stores and other commercial enterprises that are likely to build charging stations argue that utilities would have an unfair advantage in that they could pass along the investment costs for charging stations to their ratepayers, undercutting the market price per kWh.

This and other issues will be taken up in the legislative process as committees and legislators work through proposed bills during the biennial session.

On October 14, fuel load into the Vogtle Unit 3 reactor core began at Plant Vogtle. The fuel load process marked a historic and pivotal milestone toward startup and commercial operation of Unit 3.

During fuel load, nuclear technicians and operators from Westinghouse and Southern Nuclear safely transferred 157 fuel assemblies one-by-one from the Unit 3 spent fuel pool to the Unit 3 reactor core over the span of three days.

Startup testing then began. It is designed to demonstrate the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor. Operators will also bring the plant from cold shutdown to initial criticality, synchronize the unit to the electric grid and systematically raise power to 100%.

This testing process leading to commercial operation takes a number of weeks. Vogtle Unit 3 is projected to enter service by April.

Testing must progress through a series of “modes,” from Mode 6 to Mode 1. The modes are designed to progressively test operational and safety systems with increasing temperature and pressure, in Mode 2 reaching the point of “initial criticality” — or a nuclear reaction in the core. At this point, Unit 3 will have reached startup. Finally, in Mode 1, operators will raise the unit’s power to 5%, and synchronize the unit to the grid. The unit power output will be raised to various levels over several weeks, ultimately reaching 100% reactor output before beginning commercial operation.

Testing had reached Mode 3 by the time of publication of this issue.

Unit 4 Progress Update

In early December, Unit 4 completed cold hydro testing, which is required to support the last major test remaining for Unit 4, hot functional testing. Hot functional testing is projected to commence by the end of the first quarter of 2023. Unit 4 is slated to enter commercial operation by the end of the 4th quarter of 2023 or in the 1st quarter of 2024.

Cold hydro testing on Unit 4 confirmed the reactor’s coolant system functions as designed and verified the welds, joints, pipes and other components of the coolant system and associated high-pressure systems do not leak when under pressure. As part of the testing, the reactor coolant system was filled with water and pressurized above-normal operating conditions, then lowered to normal design pressure while comprehensive inspections were conducted to verify the systems meet design standards.

Other recent milestones for Vogtle Unit 4 include:

• Closed vessel testing (CVT) – Completed in early November, this testing process verified that the pipes and valves in the Unit 4 reactor coolant system are installed as designed and helps ensure safety systems function properly. To carry out CVT on the plant’s passive safety systems, workers installed the reactor vessel head as well as the lower and upper reactor internals and flow restrictors which will be used during hot functional testing to mimic flow through the reactor core.
• Rotation of turbine on turning gear – Also in November, the Unit 4 Turbine was rotated on its turning gear for the first time, demonstrating the turbine was assembled with quality and that integrated oil systems function as designed. The main turbine system consists of one high-pressure turbine and four low-pressure turbines. Rotating the turbines on the turning gear ties in all the oil systems and a significant number of supporting systems in the turbine island, which is a separate structure outside of the unit’s nuclear containment building. Once operational, the turbine will rotate at 1,800 revolutions per minute, propelled by steam produced by the unit’s two steam generators using heat transferred from the nuclear reactor. The turbine blades turn the generator rotor to produce electricity.