Critics assail cost of Georgia Power biomass projects

Opponents of a proposal by Georgia Power to add more biomass to the utility's electrical generating portfolio argued Thursday the plan is both unreliable and too expensive.

Georgia Power is seeking approval from the state Public Service Commission (PSC) to buy about 80 megawatts of electricity from three plants in South Georgia that burn wood chips from waste generated by logging operations.

Most of that power – 70 megawatts – would come through a 30-year power-purchasing agreement (PPA) with Altamaha Green Energy LLC, which operates a mill in Wayne County. Two other 10-year PPAs with International Paper Co. would produce the rest of the biomass from mills in Port Wentworth and Macon County.

The power the projects would generate would be far more expensive for Georgia Power customers than other alternatives, Aradhana Chandra, a lawyer for the Southern Environmental Law Center, told commissioners Thursday. 'If the Altamaha PPA is approved, customers will be paying for more than three times the value of energy they're receiving,' said Chandra, whose firm represents Georgia Interfaith Power and Light in the case before the PSC.

But Robert Highsmith, a lawyer representing Georgia Power, said the projects' benefits to the South Georgia economy would outweigh the costs. He noted that when the PSC ordered Georgia Power two years ago to pursue biomass as part of a diverse portfolio of energy supply sources, the commission specifically stated it wanted to create jobs in rural South Georgia by promoting the state's forestry industry.

'Cost isn't the only appropriate consideration here,' Highsmith said. Commissioner Tim Echols said 'slash' debris left over from logging operations would go to waste if it isn't converted into biomass fuel.

'I know we're paying more for this,' he said. 'But without it, this stuff gets burned right there in those communities without the benefit of scrubbers or, worse, it rots on the ground.' Commission Chairman Jason Shaw said 40% to 50% more trees are planted each year in Georgia than are harvested, yielding an oversupply that is depressing prices. A state Senate study committee has begun meeting to explore ways to put that timber to use.

'They're looking at how to create new markets for that wood,' Shaw said.

Chandra also maintained that using biomass as a source for generating electricity is less reliable than other sources of energy, citing Winter Storm Elliott as an example. At a previous hearing, she said 267 of 303 megawatts of power produced from biomass were unavailable when the storm hit on Christmas Eve 2022 with record-low temperatures.

But Highsmith said a 60% reliability requirement is built into the PPA contracts.

'They have a number of robust incentives to keep their generating facilities online,' he said.

During a public comment period, critics of the projects also objected to their financial impact on Georgia Power customers.

The commission's Public Interest Advocacy Staff has recommended that the PSC certify the three biomass projects based both on the economic benefits to the forestry industry and the benefits of diversifying Georgia Power’s energy generation mix. The commission will vote on the plan next week.