attainment for 8 hour ozone (15v counties) and fine particulates (26 counties). Programs are in 

place to bring these areas into attainment. 

Georgia is part of the annual S02 and NOx allowance trading programs under the Clean Air 

Interstate Rule (CAIR). While the D.C. Court of Appeals vacated CAIR in July 2008, it was 

temporarily reinstated in Dec. 2008. CAIR will likely remain in place until 2016 when EPA's 

strict Mercury and Air Toxics Standards (MATS) rule eliminates the need for a CAIR replacement 

program. EPA has exempted Georgia from the seasonal NOx trading program because its models 

found Georgia did not significantly contribute to downwind state ozone non-attainment. 

In order to meet MATS' strict rate limitations, 17 of Georgia's coal-fired units without advanced 

post combustion SO2 controls will be forced to invest in additional emission control projects or 

retire. Fourteen units have announced plans to retire by 2015. Two units have plans to retrofit 

FGD scrubbers. 

Georgia coal fired powerplants had an average sulfur dioxide emission rate of 0.45 lbs 

SO2/MMBtu in 2012, 9% above the national average of 0.41 lbs SO2/MMBtu 3. Georgia utilities 

have spent $2.3 billion to retrofit their coal units with FGD scrubbers to reduce S02 emissions. To 

date, 12 of Georgia's 29 coal units have FGD scrubbers or other advanced SO2 controls. Georgia 

coal units have reduced their average S02 emissions rate over 67 percent from their 1997 average 

of 1.38 lbs SO•/MMBtu as a result. Scrubbed coal units represent over 61% of Georgia's total coal 

capacity. Georgia's average coal emission rate should decline further in 2015 when 13 unscrubbed 

units implement their planned retirement and the remaining 3 units must retrofit scrubbers or 

retire. 

Georgia Coal Plant Average SO2 Emission Rate: 1997-2012 

(Ibs SO2/MMBtu) 

1.50 

1.40 1.38 1.32 

1.30 

1.20 

1.10 

1.00 

0.90 

0.80 

0.70 

0.60 

O.50 

0.40 

O.30 

0.20 

0,10 

1997 1999 2001 2003 2005 2007 2009 

0.54 

0.41 

1.35 1.38 1.37 

1.30 

0,71 

0.45 

2011 2012 2012 

US Avg. 

Georgia coal plants emitted 101,074 tons of SO2 in 2012, a 78% decrease from the 463,370 tons 

of SO2 in 2008. Georgia utilities are well below their CAIR allowable emissions limit of 213,057 

tons per year in 2012 and 149,140 tons per year starting in 2015. 

3 EPA CEMS monitoring data: http://www.epa.gov/ttn/naaqs/ozone/areas/etscem.htm 
Georgia's coal-fired stations had an average NOx emission rate of 0.14 lbs/MMBtu in 2012, a 

39% decrease from Georgia's 2007 average NOx rate of 0.23 lbs/MMbtu and a 71% decrease 

from their 1997 average (0.48#NO MBtu) 4. This decrease is attributable to Georigia utilities 

having already invested $2.05 billion in retrofitting 9 of Georgia's 29 coal units with Selective 

Catalytic Reduction (SCR) controls. With plans to spend another $1.7 billion for two more 

planned SCR retrofits and 14 additional coal units retiring, NOx emissions should decrease even 

further. 

10. 

11. 

12. 

13. 

Georgia Coal Plant Average NOx Emission Rate: 1997-2012 

(Ibs NOx/MMBtu) 

0.60 

0.50 

0.40 

0.30 

0.20 

0.10 

0.48 

0.45 0.43 

0.26 0.25 0.23 

0.15 0.16 0.14 

0.19 

0.00 

1997 1999 2001 2003 2005 2007 2009 2011 2012 2012 

US Avg. 

Georgia coal plants reported annual NOx emissions of 32,791 tons in 2012, a 65% decrease from 

the 94,500 tons emitted in 2008. Georgia is well under its Clean Air Interstate Rule (CA/R) NOx 

emissions limits of 66,321 TPY in 2012 and 55,268 by 2015. 

Following the Kingston, TN coal ash spill in Dec. 2008, Congress encouraged EPA to develop 

standards to prevent against future coal residual impoundment wall failure. As part of the data 

collection effort, the EPA collected impoundment data from 543 power plants plants and assessed 

their potential risk. EPA found 30 plants posed "high hazard potential" that could result in loss of 

life in cases of a impoundment failure..The impoundment walls at all Georgia coal plants were 

determined to be structurally sound. 

Georgia is a member of the Southeast Regional Carbon Sequestration Partnership (SECARB) 

being coordinated by the Southern States Energy Board. According to the 2012 Carbon 

Sequestration Atlas of the United States and Canada, SECARB studies have found that Georgia 

has the potential to store between 145-159 billion metric tons of C02 in its deep saline formations. 

EPA monitoring data show acid rain deposition in Georgia has decreased significantly under the 

1990 Clean Air Act. The state has low acid rain deposition rates (0.10-0.15 H ÷ kg/ha). 

4 EPA CEMS monitoring data: http://www.epa.gov/ttn/naaqs/ozone/areas/etscem.htm 
14. 

0"17 

Hydrogen ion wet deposition from measuremet 

made at the Central Analytical Laboratory 

Sites not pictured: 

AK01 0.03 kcjlha o:01 

AK03 0+02 kgtha 

PR20 0.14 kgllla 

•t• 

1994 

.0.30 

Naliot+ai Atmo,%'Jlleric t-)el:)ositio• Pr-Qgram/Natiotlal Tre[+ds Neb+vork 

http :/!nadp.sws.uiuc+edu 

+o 3: 

H 

(kgll•a) 

•0.10 

0.10 0.15 

0.15 0.20 

0.20 0.25 

0+25 0.30 

0.30 0,35 

0.35 0,40 

0.40 0.45 

0.45 0+50 

0.50 0.55 

0.55 

Sites not pictured: 

Alaska 01 0.02 kg/ha 

Alaska 03 0.02 kg/ha 

Alaska 06 0.01 kg/ha 

Puerto Rico 20 0.41 kgfha 

Virgin Islands 01 0.13 kglha 

Hydrogen Ion Wet Deposition: 2010 

(kgtha) 

0.50 

0.40 

0.30 

0.20 

0.10 

•0 

EPA's National Atmospheric Deposition Program/National Trends Network 2007 data. Data posted at 

!_•_t_t.l•://_+).•_@_,+s•:_s_,u•_uq._e_,_d_tj/_•j_ata_/ 
Energy Cost Impacts on 

Georgia Families 

Energy prices and stagnant incomes are straining the budgets of Georgia's 

lower- and middle-class families. Georgia households with annual incomes 

below $50,000, representing 53% of Georgia's population, spend an estimated 

average of 22% of their after-tax income on energy. Energy bills for the poorest 

households earning less than $10,000 represent 71% of their family incomes, 

before accounting for any energy assistance programs. Increased energy costs 

are competing with other necessities for lower- and middle-income family 

budgets across Georgia. 

Georgia Family Energy Costs 

as Percent of After-Tax Income 

8o% I 71% 

60% 

4O% 

20% 1 7% 

0% 

<$10K $I 0-<$30K $30-<$60K >I=$80K 

Annual Household Income 

February 2013 

www.arnericaspower.org 
Energy Cost Impacts on 

Georgia Families 

This paper assesses the impact of energy costs on Georgia households using 

energy consumption suwey data and current energy price data from the U.S. 

Department of Energy's Energy Information Administration (DOE/EIA). 1 Energy costs 

are summarized by household income group using Georgia data from the U.S. Bureau 

of the Census. 2 Energy expenditures as a percentage of after-tax income are estimated 

for the effects of federal and state income taxes and federal social insurance payments. 

Key findings include: 

Some 53% of Georgia's families have gross annual incomes of $50,000 or less, 

with an average after-tax income of $22,377, less than $2,000 per month. The 

median household income of Georgia families in 2011 was $46,007, 8% below 

the national median household income of $50,054. 

Measured in constant 1990 prices, residential electricity prices in Georgia are 

16% below 1990 levels, while the price of residential natural gas has increased 

by 42%. The relatively low cost of electric power is due in part to Georgia's historic reliance on domestic coal for most of its electric generation. 

Energy costs are consuming the after-tax household incomes of Georgia's lowand middle-income families at levels comparable to other necessities such as 

housing, food, and health care. Georgia families spend an estimated average of 

12% of their after-tax incomes on energy. The 1.9 million Georgia households 

earning less than $50,000 devote an estimated average of 22% of their after-tax 

incomes to energy. 

The 830,000 Georgia families with annual incomes of $10,000 to $30,000, nearly 

one-quarter of the state's population, spend an estimated average of 25% of 

their after-tax family budgets on energy. 

The 336,000 poorest families in Georgia, living well below the federal poverty 

line and earning less than $10,000 per year, are being squeezed hardest by 

energy cost increases. Many of these families receive state and other energy 

assistance to help reduce energy costs. Yet for most lower-income families and 

for 931,000 Georgia households receiving Social Security- representing 27% of 

all Georgia households rising energy costs are competing with other basic 

necessities for the family budget. 
Chart I 

14 

Georgia Residential Natural Gas and Electricity Prices, 

1990-2012 (Constant 1990 $) 

12 

10 

8 

4 

2 

1990 1995 2000 2005 2010 

Source: U,S. DOE/BA (2012 data through November.) 

Energy Expense Estimates 

Estimated household energy expenses for Georgia are based upon DOE/EIA 

residential electric and natural gas sales data for Georgia through November 2012. 9 

Total household energy costs are distributed by income category using DOE/EIA 

residential energy survey data. 

Gasoline prices have declined from their 2012 peaks, but are above $3.50 per 

gallon in many areas. Gasoline accounts for the largest single increase in consumer 

energy costs since 2001. EIA's February 2013 Short-Term Energy Outlook projects 2012 

average retail gasoline costs at $3.61 per gallon, nearly two and a half times higher than the $1.47 per gallon price in 2001. 

The increase in gas prices follows a decade-long trend of increased market 

shares of pickup trucks and SUVs, and an increase in the average number of vehicles 

owned per household. 1° Many families continue to own low-efficiency vehicles with low 

trade-in values. 

DOE/EIA's 2001 Survey of Household Vehicles Energy Use (2005) provides information on regional gasoline use by household income category. These regional gasoline consumption data are updated using EIA's 2013 national average retail 

gasoline price projection of $3.61 per gallon. To be conservative, household gasoline consumption is reduced by 10% from 2001 levels, reflecting trends in retail gasoline sales. 11 

4 
The table below summarizes estimated Georgia household energy expenses by income group, with the percentage of after-tax income represented by energy costs: 

Estimated Georgia household energy costs by income category 

Pre-Tax Annual Income: <$10K $I0-<$30K $30-<$50K _>$50K Average 

Residential energy $ $1,701 $1,789 $2,034 $2,670 $2,269 

Electric $ $1,312 $1,356 $1,574 $2,019 $1,725 

Natural Gas $ $315 $351 $373 $528 $441 

Other* $ $73 $82 $87 $123 $103 

Gasoline $ $2,055 $2,818 $3,830 $5,192 $4,054 

Total energy $ $3,755 $4,607 $5,863 $7,862 $6,323 

Energy % of after-tax income 

*Other includes LPG and wood. 

71% 25% 17% 10% 12% 

The share of household income spent for energy falls disproportionately on 

lower- and middle-income families earning less than $50,000 per year. The 24% of 

Georgia households earning between $10,000 and $30,000 spend an estimated 25% of 

their after-tax income on energy. While many lower-income consumers qualify for 

energy assistance, these government programs are hard pressed to keep pace with the 

escalation of energy prices. In 2012, Congress reduced annual funding for the federal 

LIHEAP energy assistance program from $5.1 to $3.5 billion. 

The average Georgia family with an after-tax income of $52,994 spends an 

estimated $6,323 on energy, or 12% of the family budget. The 1.9 million Georgia households earning less than $50,000, representing 53% of households, allocate 22% 

of their after-tax incomes to energy. The large share of after-tax income devoted to 

energy poses difficult budget choices among food, health care and other necessities. 

Disproportionate Impacts on Senior Citizens 

The impacts of increased energy costs are falling disproportionately on Georgia's 939,000 households of Social Security recipients, representing 27% of the state's 

households. In 2011, Social Security recipients in Georgia had an average household 

Social Security income of $16,081.12 Some 60% of these senior households had 

additional retirement income averaging $24,140 before taxes. 

Unlike young working families with the potential to increase incomes by taking 

on part-time work or increasing overtime, many fixed income seniors are limited to 

cost-of-living increases that may not keep pace with energy prices. Maintaining the 

relative affordability of electricity and natural gas prices, and increasing low-income 

energy assistance, are essential to the wellbeing of hundreds of thousands of Georgia's senior and lower-income citizens. 
Conclusion 

The escalation of Georgia consumer energy prices together with high 

unemployment and sluggish income growth among lower- and middle-income 

households underscore the need to find ways to reduce energy cost impacts on 

Georgia families, especially lower- and fixed-income households. 

Acknowledgment: This paper was prepared for ACCCE by Eugene M. Trisko, an energy 

economist and attorney in private practice. Mr. Trisko has served as an attorney in the 

Bureau of Consumer Protection at the Federal Trade Commission and as an expert 

economic witness before state public utility commissions. He represents labor and 

industry clients in environmental and energy matters. Mr. Trisko can be contacted at 

emtrisko@earthlink.net. 

End Notes 

1 Data on residential energy consumption patterns by income category are from U.S. 

Department of Energy, Energy Information Administration, 2009 Survey of Residential 

Energy Consumption (RECS). Georgia electricity, natural gas and other residential 

energy costs are based on 2012 state data from U.S. DOE/EIA Electric Power Monthly 

(January 2013), Natural Gas Monthly (January 2013) and State Energy Data System 

data available at www.eia.•/•seds. 2013 gasoline price projections are from 

DOE/EIA Short Term Energy Outlook (February 2013). 

2 Household incomes in Georgia by income category are derived from the distribution of 

household income in U.S. Census Bureau, American Fact Finder, Georgia Selected 

Economic Characteristics: 2011 (2012). 

4 Congressional Budget Office, "Effective Federal Tax Rates Under Current Law, 2001 to 

2014," (August 2004). Effective federal tax rates for the income categories employed in 

this paper were interpolated from CBO's tax rates by income quintile and adjusted for 

changes in the American Taxpayer Relief Act of 2013. 

s State tax data are estimated from state tax rates compiled by the Tax Foundation 

(2012). 

o U.S. Census Bureau, American Fact Finder, Georgia Selected Economic Characteristics 

2011 (2012). 

7 U.S. DOE/EIA, Electric Power Monthly (January 2013). 

9 Id., and U.S. DOE/EIA, Natural Gas Monthly (January 2013). lO U.S. DOT, 2001 National Household Travel Survey, "Summary of Travel Trends," 

(December 2004). 

11 The Department of Transportation's 2009 National Highway Transportation Survey 

(NHTS) reports that average vehicle-miles traveled per household declined from 21,187 

miles in 2001 to 19,850 miles in 2009. DOE/EIA data indicate that retail gasoline sales 

in barrels per day declined by 10.1% from 2001 to 2012 on a household-adjusted basis. 
The regional household gasoline expenditure estimates presented in this report are 

comparable to the national expenditure data reported in the 2009 NHTS after 

adjustment for gasoline price differences. 

12 U.S. Census Bureau, Georgia Selected Economic Characteristics: 2011 (2012).