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Energy Alabama, GASP Appeal Alabama PSC’s Approval of $1+ Billion Gas Expansion

Groups Appeal Alabama Public Service Commission’s Approval of $1+ Billion Gas Expansion 

For Immediate Release: January 11, 2021

Montgomery, AL—Energy Alabama, GASP, and the Southern Environmental Law Center are appealing the Public Service Commission’s approval of Alabama Power’s petition for its single largest capacity increase ever, with a price tag for customers of over $1.1 billion.

The groups have filed an appeal in state court challenging the Commission’s decision allowing Alabama Power to increase its natural gas capacity by over 1800 megawatts, including building a new gas plant at the Barry Electric Generating Plant in Mobile County, while failing to approve a proposal to add 400 megawatts of solar plus battery energy storage projects.

In September, the groups petitioned the Commission to reconsider its determination that this capacity increase is needed, especially in light of the economic slowdown caused by the pandemic; its decision to saddle customers instead of utility shareholders with the risk that the assets will become stranded; and its denial of the solar plus storage projects, which the utility’s own analysis showed had the most value for customers. The Commission denied the petition.

Starting January 1, Alabama Power’s electric rates are increasing for all 1.48 million residential, commercial, and industrial customers, raising the average residential monthly bill by about $4. As a result of the new natural gas capacity, bills are expected to increase further starting in 2023.

“Alabamians already pay some of the highest energy bills in the country and the pandemic has only worsened the financial hardships many are facing,” said Keith Johnston, Director of SELC’s Birmingham office. “Now the Commission is allowing Alabama Power to go forward with an unjustified, massive amount of new capacity that will further increase electricity rates, putting added strain on customers.”

The Alabama Attorney General’s office raised concerns in the Commission proceedings that the proposed gas plants could become stranded or uneconomic as a result of new emission standards or changes in technology, and recommended that the Commission impose a condition requiring that Alabama Power and its shareholders bear any stranded costs associated with its proposal instead of customers.

In its final order, the Commission ignored the Attorney General’s recommendation and failed to set any conditions on its approval, concluding it would be “inequitable” to burden Alabama Power shareholders with stranded asset risk, even though shareholders reap substantial profits from self-build assets like Barry Unit 8.

“The Commission failed to act in the public interest by approving unnecessary, expensive projects while leaving more affordable options on the table,” said Daniel Tait, Chief Operating Officer of Energy Alabama. “To make matters worse, the Commission has rubberstamped an enormous transfer of risk from utility shareholders to customers.”

Alabama remains the only state in the Southern Company territory, which includes Alabama, Georgia, and Mississippi, that prevents the public from any meaningful participation in the energy planning process.

“Alabamians deserve to have an open and transparent regulatory process, more information around how their energy decisions are being made, and the opportunity to provide input to ensure decisions are made in our state’s best interest,” said Michael Hansen, Executive Director of GASP. “When that transparency is missing from the energy decision-making process, we end up with unjust results where utility profits are given priority over people.”

 

Background:

In early March 2020 the Alabama Public Service Commission heard testimony from 15 witnesses concerning Alabama Power’s request to increase its total power-producing capabilities by almost 20%, despite the utility’s previous assertions that it wouldn’t need new electric generation sources until 2035.

On behalf of Energy Alabama and GASP, the Southern Environmental Law Center intervened in the docket to advocate for responsible, cost-effective investments to meet any need for additional capacity on Alabama Power’s system.

Energy Alabama and GASP’s experts exposed significant flaws in the planning and forecasting methods Alabama Power used to justify its claimed need. In written and oral testimony, the experts pointed to the utility’s long-standing efforts to profit from unnecessary and expensive new generation assets that increase costs for customers.

The groups also made the case that Alabama Power’s plan lacks significant detail about the cheapest, least cost resources, such as solar and energy efficiency.  Alabama Power’s own analysis showed that solar plus battery storage are the least cost resources in its proposal and provide more value to customers.

Energy Alabama and GASP’s proposed order details their position based on the record developed during the hearing.

The groups also filed a motion for permission to file supplemental briefing regarding how the Covid-19 pandemic may impact the need for and timing of the resources proposed in Alabama Power’s petition. These issues were not addressed during the March hearings, which was limited to testimony filed long before the pandemic took hold.

Energy Alabama and GASP filed a supplemental brief arguing that the Commission should not rush forward with a decision without fully assessing the pandemic’s impacts and resulting economic fallout on the utility’s petition.

Following the PSC staff’s recommendations to approve the majority of projects that Alabama Power is seeking to build, buy or contract, the Commission voted unanimously in June 2020 to adopt the staff recommendations in their entirety.

The only resources the Commission refused to approve were the proposals for solar plus battery storage, by far the most economic options according to Alabama Power’s own analysis.  Instead, the Commissioners signed off on the staff’s recommendation to evaluate the solar and battery proposals in another existing docket. The Commission issued a final order in August.

GASP and Energy Alabama filed a petition for reconsideration and rehearing in September, urging the Commission to reconsider Alabama Power’s need determination and to grant a rehearing to consider updated testimony in light of the changed circumstances resulting in lessened electric demand. The Commission denied the groups’ motion for reconsideration and rehearing in December.

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About Energy Alabama:

Energy Alabama is a membership-based non-profit organization accelerating Alabama’s transition to sustainable energy. We accomplish our mission by educating at all levels, informing smart energy policy, building the next generation workforce, and providing technical assistance to deploy more sustainable energy. We believe in sustainable energy for all. energyalabama.org

 

About GASP: GASP is a nonprofit health advocacy organization based in Birmingham, Ala. Our mission is to advance healthy air and environmental justice in the greater-Birmingham area through education, advocacy, and collaboration. We strive to reduce exposure to air pollution, educate the public on the health risks associated with poor air quality, and encourage community leaders to serve as role models by advocating for clean air and clean energy. GASPgroup.org

 

About Southern Environmental Law Center: For more than 30 years, the Southern Environmental Law Center has used the power of the law to champion the environment of the Southeast. With over 80 attorneys and nine offices across the region, SELC is widely recognized as the Southeast’s foremost environmental organization and regional leader. SELC works on a full range of environmental issues to protect our natural resources and the health and well-being of all the people in our region. www.SouthernEnvironment.org


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Legal Petition Demands Tennessee Valley Authority Halt Electricity Shutoffs, Fund Debt Relief

For Immediate Release, August 25, 2020

Contact:

Howard Crystal, Center for Biological Diversity, (202) 809-6926, hcrystal@biologicaldiversity.org
Brianna Knisley, Appalachian Voices, (937) 725-0645, brianna@appvoices.org
Daniel Tait, Energy Alabama, (256) 812-1431, dtait@alcse.org
Isabella Killius, Sunrise Tennessee, (615) 762-6665, sunrisetennessee@gmail.com

WASHINGTON— Dozens of climate-justice organizations petitioned the Tennessee Valley Authority today to immediately impose a moratorium on electricity shutoffs in the region and fund debt relief for its customers.

The petition also calls on the massive utility company to accelerate the Valley’s clean energy transition to address compounding COVID-19 unemployment, climate and racial injustice crises.

“TVA has the responsibility and the money to prevent people from needless suffering and crushing debt,” said Howard Crystal, legal director for the Center for Biological Diversity’s energy justice program. “The company can seize this opportunity to genuinely serve the public interest and become a model for other utility companies. TVA must acknowledge the environmental damage from its dirty energy choices and chart a new course toward a clean, democratic energy future.”

Congress has yet to impose a federal moratorium on utility shutoffs, leaving thousands of families in TVA’s service territory at risk of losing electricity during a summer of climate-induced, record heatwaves.

“In the face of a public health, environmental and economic crisis not seen since the Great Depression, we are calling on TVA to return to its original mission to improve quality of life here in the Tennessee Valley,” said Brianna Knisley, Tennessee campaign coordinator with Appalachian Voices. “TVA can and should protect vulnerable communities from power shut offs, eliminate unnecessary and harmful coal ash production, and bring new, public jobs to the Valley. At the very least, our public utility should be reaching out to communities to better understand their issues and needs during these critical times.”

The COVID-19 pandemic and related unemployment crisis have brought severe economic strain to the Southeast, a region where low-income communities, Black communities and other communities of color are already disproportionately burdened by pollution, high energy bills and utility shutoffs.

“If TVA wants to get serious about reducing the burden of COVID-19 on residents in the Valley, it is time for TVA to get serious about strong energy efficiency and renewable energy programs, specifically for low-income customers,” said Daniel Tait, chief operating officer of Energy Alabama.

The petition urges TVA to reallocate its vast resources to help customers pay their bills and fund equitable economic recovery through clean energy and efficiency programs. This would require a series of public hearings, which the petition says should begin as soon as possible.

“In the midst of the pandemic, when people are unemployed and without basic needs like power, food, water, and broadband services, TVA has a responsibility to support its customers by instituting a moratorium on utility shut-offs, thus upholding its original mission to serve the people of the Tennessee Valley,” said Isabella Killius with Sunrise Tennessee. “This petition encapsulates the need for institutional change within the TVA such that customers are provided adequate relief and, in addition, necessary actions are taken to mitigate the ongoing climate crisis.”

TVA has the funding and the mandate to provide debt relief to residential customers, rapidly retire its fossil fuel infrastructure, and invest in clean, distributed energy and energy efficiency efforts. These efforts will create local jobs vital to the region’s economic recovery.

The petition is named in honor of S. David Freeman, a former TVA board chair and a tireless advocate for renewable energy. The self-proclaimed “green cowboy,” who died in May, had sought for a long time to free people from polluting, centralized TVA power.

TVA is a federally owned corporation and the nation’s largest public power provider. It generates electricity for more than 9 million customers in Tennessee, northern Alabama, northeastern Mississippi, southwestern Kentucky, and portions of northern Georgia, western North Carolina and southwestern Virginia.

 

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 1.7 million members and online activists dedicated to the protection of endangered species and wild places.

Appalachian Voices works at the nexus of the ongoing shift from fossil fuels to clean, 21st-century energy sources — we fight mountaintop removal coal mining, fracked-gas pipelines and other harms to the people and places of Appalachia, and we advance energy efficiency, solar and wind power, and other economic solutions that create community wealth and sustain Appalachia’s mountains, forests and waters.

Energy Alabama is a membership-based non-profit organization accelerating Alabama’s transition to sustainable energy. We accomplish our mission by educating at all levels, informing smart energy policy, building the next generation workforce, and providing technical assistance to deploy more sustainable energy. We believe in sustainable energy for all.

Sunrise Tennessee is a statewide coalition of Sunrise hubs that represents young organizers from Nashville, Knoxville, and Franklin, Tennessee. We are fighting for a Green New Deal on both state and federal levels, ensuring a just transition away from the fossil fuel economy and the creation of millions of good-paying jobs.

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Energy Alabama among groups calling for stop to electricity shutoffs during pandemic

Energy Alabama is among a dozen organizations that have called on the Tennessee Valley Public Power Association (TVPPA) to urge its member utilities to immediately halt service disconnection and late fees for families during the coronavirus pandemic.

 

 

TVPPA’s members include the electric cooperatives and municipal electric utilities who serve 9 million people across seven states in the Tennessee Valley Authority’s service area. In the letter, the groups identified five of TVPPA’s large utilities that had taken these kinds of actions to protect their customers, adding that many TVPPA members may still be charging customers late fees and cutting off service for non-payment.

 

 

TVA has authorized deferred wholesale power payments in its service area, according to the groups’ letter, and increased federal funding to help low-income households with energy bills was included in the recent federal stimulus package. TVPPA members should not cut off service or add late fees onto the bills of families who, through no fault of their own, find themselves in dire economic straits for the foreseeable future.

This tool from Appalachian Voices allows you to find out if your local utility has implemented a Covid-19 policy, and provides information for who to call if they have not done so.

Energy Alabama and Gasp Appreciate Alabama Power’s Belabored Decision Not to Disconnect Service or Charge Late Fees During COVID-19 Crisis

BIRMINGHAM, Ala. (March 19, 2020) — On Friday, March 13, Governor Kay Ivey declared a State of Emergency as the COVID-19 pandemic made its way to Alabama. That evening, in response to this crisis, Gasp and Energy Alabama called for Alabama Power, the largest utility in the state, to put a moratorium on service disconnections and late fees until at least May 1. By last weekend, most investor-owned utilities across the country had made meaningful moves to suspend shutoffs.

Unfortunately, Alabama Power was unwilling to issue a full-throated public statement or even a clear announcement on its website about its intentions. Language matters. Instead of decisive language, Alabama Power made ambiguous statements claiming they had “no plans” to disconnect service “for those impacted by COVID-19” and, later, “customers financially affected.” 

We continued to take the company to task this week. We wrote a letter to the Public Service Commission, along with 12 other organizations, asking it to issue an emergency order suspending shutoffs and the accrual of late fees for all regulated electric, gas, water, and telecommunication utilities for all customers. 

Yesterday, it appears Alabama Power agreed to the terms we set for the people of Alabama: no disconnections, no late fees. They published an article on their company-owned website, Alabama News Center, stating that “Alabama Power has pledged not to disconnect customers or charge late fees for those affected* by the COVID-19 crisis.”

This afternoon at 4:35 p.m. Central Daylight Time, Mobile Mayor Sandy Stimpson posted to Twitter confirming that pledge and, perhaps, going even further. He said Alabama Power, Mobile Area Water & Sewer System, and Spire “will suspend all cutoffs of service for people who cannot pay their bills during #COVID19.”

It does appear that customers in jeopardy of missing a payment must still contact Alabama Power’s customer service line. On their company-owned news website, they say “customers that need our help to let us know by contacting Customer Service at alabamapower.com or 1-800-245-2244.” We still believe this is an unnecessary step and it should be removed.

We further believe Alabama Power should update its corporate website homepage to reflect the straightforward text of today’s announcement: that the company will not shut off any customers and will not charge any late fees until after the COVID-19 crisis.

This was never a political issue. Asking the largest utility company in the State of Alabama to be super clear about its intentions was and is justified to protect basic human needs during this pandemic. Calling for the Alabama Public Service Commission to issue an emergency order suspending shutoffs and late fees for ALL utilities (electric, water, sewer, telecommunication) under its jurisdiction  was and is essential to protect all Alabamians. 

Gasp and Energy Alabama are appreciative of the thousands of dedicated Alabama Power employees still going into work, day in and day out, to keep the lights on. The company would be better off if its C-suite were as reliable and clear-eyed as their workers.

*This is not just a public health crisis. It’s also an economic and social crisis. Everyone is affected.

New Poll Shows Alabama Voters Overwhelmingly Support Expanding Renewable Energy

A recent statewide poll found that 75% of registered Alabama voters support the expansion of renewable energy in the state. Support for more renewable energy is consistent regardless of party affiliation, geographic location, or race.

When asked about the energy currently being used in Alabama, 46% of poll respondents said that we are not using enough renewable energy. The poll also indicated that there is potential for even higher levels of support for renewable energy once voters learn more about the industry; 31% of respondents said they are not sure if there is enough renewable energy in Alabama.

“Expanding renewable energy would mean more jobs and a healthier environment for our state,” said Tammy Herrington, Executive Director of Conservation Alabama Foundation. “This poll confirms that regardless of demographics or political preferences, Alabamians see the potential and want to act on it.”

“Alabama has lagged its neighbors on renewable energy,” said Daniel Tait, Chief Operating Officer of Energy Alabama. “But the people of Alabama want better and expect their leaders do more.”

“As we’ve seen with the increasing demand from Alabama business leaders who want more clean energy options, making solar and other renewables more widely available would provide major benefits for Alabamians,” said Keith Johnston, managing attorney for the Southern Environmental Law Center’s Birmingham office. “By enacting policies that clear the way for homegrown clean energy investments, Alabama can create local jobs and build on economic development opportunities that other Southern states are benefiting from as a result of their own investments.”

The poll was conducted by Mason-Dixon Polling & Strategy, Inc., between April 9 and 11. Across the state, 625 registered Alabama voters were contacted via both landline and cell phone. The renewable energy questions on the poll were paid for by Conservation Alabama Foundation, Energy Alabama, and Southern Environmental Law Center, and the full results can be viewed below.

Download the PDF file .