Solar developer says Georgia Power 'defaulted' on right to lead development

Source: http://www.snl.com/

By Kelly Harrington-Andrejasich

Arguing that a new model is needed to jump-start Georgia's solar development, Georgia Solar Utilities Inc. has asked state regulators to allow it to build utility-scale solar projects and begin work on a distributed solar power generation system.

In a petition filed with the state Public Service Commission on Sept. 20, Georgia Solar Utilities asked that regulators agree that an 80-MW solar project and similar other projects up to 500 MW be started as a "beginning point for the distributed generation system."

"Georgia Power has defaulted on their right to lead solar development in Georgia," the company said. "The PSC can correct the course of this state."

Georgia Solar Utilities President Robert Green said his company has proposed the creation of a "mutual insurance"-like company, with the right and authority to generate utility-scale power and sell it on the grid at retail rates. "What we're doing, as a mutual company function, is turn the profits back to the ratepayers over time," he said in an interview.

In looking at ways to develop solar in Georgia, the company said it developed a model with 2 GW of solar farms. Georgia Solar Utilities said it found that by creating a new entity with no legacy issues and having all of the rights as a utility, the new solar company would be able to generate enough profits to create a rate reduction fund for customers.

The new entity could also pay Georgia Power the profits on their lost revenues through grid access charges. "The change in corporate structures clearly identified the best way for Georgia to obtain solar energy," the company said in its petition. "This change solved many problems in the way people have sought to finance solar. GaSU's structure 'is' in the best interests of ratepayers, far better than any current proposals."

Green said the setup would not hurt existing utilities. According to the company's model, the distributed power generating system would pay for itself in 20 to 25 years and "over 30 years will generate more than $7 [billion] for [Georgia] ratepayers" and $2 billion in grid access fees and profits for Georgia Power Co. Capital costs would come from private capital, Georgia Solar Utilities said.

While the company modeled 2 GW of distributed solar farms built by 2016, Green said he did not know what the final figure would be. "Our ultimate goal is to build what is optimal for the geography in this state; nobody has made this calculation yet," he said, adding that Georgia has the potential to be third in the country for generation and export of solar.

Green said it is still unknown if the company needs approval from an entity other than the PSC for its idea. "The PSC has authority to do what's in the best interest of ratepayers, and I think we've put forward a plan that's in the best interest of ratepayers," he said.

Georgia Power expects to file a solar plan with the PSC during the week of Sept. 24, said spokesman Mark Williams. He could not provide details of the proposal but said the Southern Co. subsidiary has been working with the commission for several months to find new ways to add more solar to its mix that does not make base rates go up for customers.

Green said Georgia Solar Utilities will read that plan with interest. "Whatever happens, the lack of motion on solar in the state of Georgia is ending. Either way, the state wins," he said. "The question is how much."