The Georgia Public Service Commission (Commission), in comments filed with the U.S. Environmental Protection Agency (EPA), urges the EPA to “significantly modify”  the proposed “Clean Power Plan Rule” filed by EPA on June 2, 2014 under Section 111-(d) of the Clean Air Act. In its comments, the Commission says “the proposed rule is unclear and will create difficulties for regulators and ratepayers in Georgia. We request an adjustment to Georgia’s final goal to relieve the hardship we believe the rules, as written, will impose.”

Commission Chairman Chuck Eaton said, “I think the proposed rule unfairly penalizes Georgia for the progress we’ve already made in reducing carbon emissions.”

The EPA originally requested comments by October 16, 2014, however due to the overwhelming response from all parties, the EPA extended the comment period to December 1, 2014. The EPA also held public hearings on the proposed rule in four cities around the country including Atlanta on July 28 and 29, 2014.

The Commission comments further address concerns on the Building Block methodology EPA uses to arrive at Georgia’s proposed emission reductions. In particular, the Commission says “the proposed rule treats the two nuclear power units now under construction at Plant Vogtle as though they were existing resources.  As such, “the rule appears to be punitive to Georgia and its citizens.” Georgia’s investment in carbon-free energy should be given full credit toward compliance with the proposed rules. The Commission comments also address concerns with the other building blocks on Heat Rate, Natural Gas Re-dispatch, Renewables and Energy Efficiency/Demand-side Management (DSM).

The Commission’s comments on the EPA proposal points out multiple ways the proposed rule is inequitable and treats Georgia unfairly. The key points are summarized below:

1. Planning Authority. The proposal jeopardizes the Commission’s state planning authority in approving the investor owned utility’s Integrated Resources Plan (IRP) and intrudes on state authority. The comments state: The rule, by imposing a one-size-fits-all type of guidelines based on other states, does not provide state regulators with tools to meet proposed goals on what may work in Georgia.

2. Complexity and Timing. The proposed rule is extremely complex with an aggressive timeline for planning and compliance that will make both developing and implementing a plan difficult.

3. Interstate Transfer and Plant Siting. The current proposal as written is not clear on how to split the emissions from a coal plant that provides power for multiple states.

4. Benchmark Date. There also appears to be some inconsistencies regarding the year used as an initial benchmark for carbon emissions The proposed rules use 2012 as the benchmark date for all emissions although the goals are in reference to reductions from 2005 levels to align with President Obama’s Climate Action Plan.

5. Equity between States. Georgia is mandated with a 48% reduction in its carbon intensity rate, which is well above the 30% average required emissions reduction across all states.

6. Stranded Assets and Rate Pressure. As a result of the proposed rule, ratepayers will be required to pay for new generation sources as well as previously installed environmental compliance measures for units that will have to be retired.

In summary, the Commission is urging EPA to modify the rule. The comments conclude with “without revisions and clarifications, this rule will be unduly burdensome on Georgians placing upward pressure on electricity rates, an outcome that is not acceptable to our organization or the citizens we serve.”

The full text of the Commission’s filed comments can be found at http://www.psc.state.ga.us/GetNewsRecordAttachment.aspx?ID=490.