Georgia Court of Appeals Sides with Georgia Power and PSC on Charging Customers for Coal Ash Cleanup

ATLANTA, GA -- Yesterday, the Georgia Court of Appeals rejected Sierra Club’s appeal over coal ash cleanup costs and who should be responsible to foot the bill. The appeal stems from Georgia Power’s 2019 rate case where the Public Service Commission (PSC) decided to award Georgia Power a rate hike without detail for how the money would be spent. Total coal ash cleanup costs are estimated to be upwards of $8.96 billion, already a significant increase from Georgia Power’s $7.6 billion estimate during the 2019 rate case.

The PSC approved Georgia Power’s increase on ratepayers’ bills without asking for legally-approved closure plans and without even acknowledging or addressing whether Georgia Power should pay some or all of the coal ash cleanup costs given the utility’s history of improper coal ash disposal. A ProPublica investigative report revealed, decades ago, Georgia Power made a business decision to not safely dispose of coal ash the company knew to be toxic to human health because it was not “economically feasible.” 

In the rate case, Georgia Power didn’t discuss how it would spend the money it requested, nor if it was even reasonable for customers to pay the multi-billion dollar price tag. The PSC allowed Georgia Power to collect this sum from customers even though the Georgia Environmental Protection Division (EPD) had yet to approve coal ash management permits for the company’s coal ash ponds. Without approved permits, the costs are entirely speculative and likely to increase if EPD requires Georgia Power to excavate all the coal ash ponds and properly store the ash in lined landfills. 

Toxic coal ash has been and will continue to leach into groundwater, polluting well water, lakes, and rivers used for drinking, fishing, and recreation. Public health risks associated with coal ash are significant and well-documented. Coal ash sites contain some of the most dangerous known toxic chemicals on earth—like arsenic, lead, mercury, and chromium—which raise the risk for cancer, heart disease, and stroke, and can inflict permanent brain damage on children.

David Rogers, Southeast Deputy Regional Director for the Beyond Coal Campaign, released the following statement:

“We’re disappointed that the Georgia Court of Appeals agreed with Georgia Power and the Public Service Commission that customers should have to pay for Georgia Power's coal ash cleanup costs. This decision will raise power bills for communities whose utility costs are already too high. Georgia Power knowingly stored coal ash unsafely, and should be responsible for paying for that bad decision. We’ll continue to argue that Georgia Power and its stakeholders should be responsible for future costs, which are estimated to be well over $8 billion and have only continued to grow.”