Contact:

### nnEcl*s Phone:404-463-0214 WNW.psc.state.ga.us 

### For Immediate Release 

## Georgia Public Service Commission 244Washington St S.W. Atlanta, Georgia 30334

**Phone:4~1** Toll fnee:1- 800-282-5813 Fax: 404-658-2341 51-14 

## MEDIA ADVISORY Commissioner Tim Echols MediaAvailability When: 10:10 a.m. July 29,2014 Where: Outside Conference Room Omni Hotel North Tower, M4 I00 CNN Center Atlanta, Georgia 30339 ATLANTA- July 28, 2014

- Public Service CommissionerTim Echols will be available for interviews following his remarks at the Environmental Protection Agency hearing at the Omni Hotel onJuly 29,2014. Contact Commission Public Information Officer Bill Edge to coordinate interviews at404-406-5120 orbille@psc.state.ga.us. Echols prepared remarks, embargoed until 10 a.m. July 29,2014, are attachedbelow. Remarks to EPA by CommissionerTim Echols Embargoed forJuly 

### 29, 2014 We're one ofonly 12 states that elect ourenergy regulators, and all five ofus onthe Public Service Commission face the voters every six years. All five ofus have great concern about this rule. I'm here today to tell you that Georgia has made enormousprogress with air quality, and it is my hope that the proposedrule will be withdrawn. Since 2008, within the Georgia Power system, our C02 is down 30%, Mercury andN02 are both down 85%, and So2 is down 90%. We have 411 CNG buses in Atlanta'sbus fleet, and we'rethe #I market in America for the Nissan Leaf. We'realso the fastest growing solar state in the country. By the way, we've done all this without a Renewable Portfolio Standard, without this rule in question today-allthe while maintaining competitive rates. We've made great progress, but this rule will force us to strand assets and raise energy prices. In 2005, 60% ofGeorgia Power's generation was coal. Today, it is 26%. In 2005, we had only 3% ofourgeneration poweredby natural gas, andtoday it is almost 30%, a ten-fold growth. We're building two newreactors. Itwasjustin February when CommissionerMcDonald and I sat with President Obama's climate advisors, at their invitation, in the White House where we were toldthat without a substantial growth in nuclear power, the President's CleanEnergy goals could not be met. Yet this rule doesn't send the signals to triggerthe enormous investmentrequired to do what we are doing here in Georgia. Idon't have to tell you all that the country's nuclearfleet is under economic stress. The same low cost natural gas that has allowed us to fuel-switch coal has made nuclear powerless competitive as well--especially in FERCjurisdictional markets and wind corridors. Nuclear generation is undervalued in the marketplace. States needs tojoin Georgia and South Carolinainrecognizing the importance ofthe nuclear fleet and adopt policies that will allow them to develop reactors like we are. Unfortunately, this rule does not go nearly far enough. In fact, the new rule will most likely make us even more dependent on natural gas. A simple calculation illustrated recently by FERC CommissionerNorris demonstrates that the county's gas-fired fleet already emits more C02 than our 2050 target. Therefore, it seems paramountthat any rule must substantially incent new and existing nuclear, far more than the proposed rule does. This rule's evaluation ofthe cost and impact ofnew requirements assume that Vogtle 3 and 4 adds $0 to Georgia's C02 reduction efforts. This rule assumes that the GeorgiaPublic Service Commission and PlantVogtle co-owners did not considerthe cost ofcarbon when we certified Plant Vogtle as a carbon-free emittingresource. Nothing could be further from the truth. In fact, ouron-going monitoring ofthis plant continues to consider the cost ofcarbon. But you canbet that cost is not $0, as the rule assumes. In January during the polar vortex, natural gas prices soared, especially in New York and New England. One New York plant operatortold me that it was cheaper to bum oil than natural gas 21 ofthe 3! days ofJanuary. We've built a model here in Georgia that provides flexibility so that we can use the most cost effective fuel source at any time. Under this rule, that will be over. We've gone to great lengths to create a diverse portfolio to protect our ratepayers. This rule unravels all the planning we have done for the last 20 years. Under this rule, a good economy becomes our enemy, and a polar vortex could trigger a substantial fuel cost increase. Under this rule, we ignore the impact and cost to ratepayers ofthe 3000 MW ofcoal that will be retired by 20!5. Under this rule, the EPA would have us abandon another 3900 MW offossil generation without regard to the $5 billion invested to install environmental controls. Underthis rule, our energy policy is set by you, and not by ourelected officials who represent our citizens. Any rule created by the EPA should allow me to do myjob.Things are onthe right track here in Georgia. This rule bypassesthe federal and state legislature, ties the hand ofthe Governor, and usurps my authority given by the constitution ofthe state of Georgia. So, inthe spirit ofdemocracy, please withdrawthis rule. CommissionerEchols is in his fourth year onthe Georgia Public Service Commission, having been elected statewide in November, 20I0. His complete biography andphoto are found on the Commissionweb site atbltJ:l:1\\_':.,_"Jl_sc

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