Nuclear Plant Critics Want Their Say

Mar 12 - The News & Observer

Environmental groups are challenging Progress Energy and Duke Power's forecasts of energy demand, asking the state utilities commission to consider promoting solar power and options other than building new nuclear power plants.

Public Staff, the consumer advocacy arm of the N.C. Utilities Commission, is requesting a hearing and expects the request to be granted.

"We want to explore every feasible way of improving efficiency and reducing energy consumption," said Ben Turner, director of the Public Staff's electric division.

Environmental advocates such as N.C. Waste Awareness and Reduction Network in Durham say that North Carolina lags behind other states when it comes to promoting energy efficiency. "This is the big debate we've all been looking for," said NC WARN's director, Jim Warren. "It's the first time in a long time that this has come up at this level."

The groups that have asked the utilities commission for evidentiary hearings also include N.C. Sustainable Energy Association, Southern Alliance for Clean Energy and the Southern Environmental Law Center.

Among their goals: to challenge the energy-demand projections filed by Progress Energy and Duke Power. Warren says the utilities are inflating their projections to justify new power plants. The 10-year forecasts are typically filed with the state as a matter of public record, but not subject to evidentiary hearings.

The groups propose a:

--Public Benefits Fund. It would be used for interest-free loans, rebates or subsidies for homeowners or businesses that invest in energy efficiency. The cost would be included in customer bills.

--Renewable Energy Portfolio Standard. Utilities would be required to generate some of their power from solar, wind and other renewable generators. The extra cost would be paid by utility customers as part of the electricity rate. The proposal stalled after being introduced in the General Assembly last year. The utilities commission is commissioning a feasibility study on the topic and is expected to issue a report this year.

--Rate Decoupling. This would guarantee a profit level for a utility when efficiency and conservation reduce electricity sales and hurt the bottom line. The financial loss would be made up by customers.

The activists want the commission to either adopt the proposals or recommend that the General Assembly do so.

Proponents of these programs say they would cost consumers less than the rate increases that would be necessary to pay for building a new power plant.

North Carolina has programs in place already.

Since 2000, the state has allowed homeowners and businesses to take income tax credits for buying and installing renewable energy generators. The net metering program, adopted in October, lets homeowners with renewable energy generators sell electricity back to the utility, which lowers their monthly bills.

The utilities commission could decide that new power plants are needed, but that they are needed farther out than 10 years, which would delay the construction. Or the commission could side with the utilities and accept their energy demand forecasts as submitted.

The commission hasn't decided whether to hold hearings.

Progress Energy and Duke Power officials say they are not opposed to hearings.

The utilities say they support efficiency and conservation, but that current renewable technology is more expensive than building a power plant.

And utility officials say they doubt that the public is willing to lower its energy consumption enough to decrease energy demand.

"Right now we don't see anything that's commercially viable for large-scale electricity production," said Progress Energy spokesman Keith Poston. "We have to plan based on current consumption models."

Utilities haven't embraced efficiency and conservation on a large scale because cutting energy use reduces sales and hurts profits, Warren said.

But restructuring the rate system would allow utilities to sell less power without being penalized, he said.

"Utilities have every incentive to maximize their sales," Warren said. "It's backward."

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