Nuclear loan guarantee for Southern Co. energy giant raises hackles of environmentalists

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Southern Co.’s lobbying draws complaints

ATLANTA — President Barack Obama’s award of billions of dollars in federal nuclear loan guarantees to Southern Co. has angered environmentalists who say the president is embracing the energy powerhouse that worked aggressively to defeat a key climate change bill championed by his administration.

The Atlanta-based company had nearly twice as many climate lobbyists as any other company or organization during last year’s debate over cap and trade legislation, according to the Center for Public Integrity. The company hired 16 outside firms to supplement their stable of in-house lobbyists and spent $16.5 million on Capitol Hill lobbying in 2009. The company maintains the report overstates their lobbying role.

Some environmentalists — while not surprised that Obama is moving forward on nuclear power — are upset that Southern Co. is the recipient of such federal largesse.

“It’s shameful,” Georgia-based Sierra Club lobbyist Neill Herring said. “They gave a big wet kiss to their very worst opponent.”

On Tuesday, Obama announced that Southern Co. will be eligible for $8.3 billion in federal loan guarantees to build and operate two new nuclear reactors at its plant in Burke County, Ga. The first of the two reactors is scheduled to go online in 2016 and the second the following year.

The energy behemoth was a leading contender to receive the administration loans because the two new reactors at Plant Vogtle in eastern Georgia were the furthest along in the pipeline, having already received Georgia Public Service Commission approval. Their application for a license to build and operate the reactors is pending with the Nuclear Regulatory Commission, one of 13 such applications the agency is considering.

But Obama’s announcement favoring Southern Co., whose strong opposition to the American Clean Energy and Security Act helped stall the bill in the U.S. Senate, has some environmentalists feeling betrayed.

“This says to me that Obama is desperate to appear bipartisan,” said Stephen Smith, executive director of the Knoxville, Tenn.-based Southern Alliance for Clean Energy. “To give these guys of all guys a bonus, the irony is just gut-wrenching.”

As the nation’s largest generator of electric power, Southern Co. has a lot to lose in the climate bill. A majority of its plants are fired by burning fossil fuels, like coal and oil — which are the leading sources of greenhouse gases.

The Obama-backed climate bills would curb greenhouse gas emissions. If they exceeded the proposed limits the company would have to purchase costly credits through a cap and trade program. Some estimates have said the bill could cost Southern billions of dollars.

Under the version that passed in the House last June, power companies would be required to draw 20 percent of their energy from renewable sources like solar and wind by 2020. Currently, Southern gets almost none of its energy currently from renewable sources.

Southern Co. spokeswoman Valerie Hendrickson said the company opposed the House climate bill because it would have increased costs for its customers.

“We are absolutely concerned about keeping costs down for our customers,” Hendrickson said.

In 2009, Southern had 63 lobbyists on its payroll, according to reports filed with the Senate Office of Public Records. Eight of them were in-house lobbyists and the rest came from 16 outside lobbying firms. One of the lobbyists, brought on at the end of 2008 — soon after Obama won the White House — was Heather Podesta, the sister-in-law of John Podesta, former White House Chief of Staff to Bill Clinton and the leader of Obama’s transition team.

The Center for Public Integrity found Southern had nearly twice as many lobbyists as any other organization lobbying on the climate issue. The closest was Edison Electric Institute with 34 lobbyists.

But Hendrickson argued that Southern has only seven full-time lobbyists in its Washington office. She said the other lobbyists are on contract with the company to work on a variety of issues. Some, she said, work for a number of energy companies.

Senate lobbying reports require only that a lobbyist list what issues they are working on and the overall amount spent. So, it was not possible to see exactly how much was spent specifically on the climate bill.

The White House did not immediately return a phone call seeking comment.

Southern owns utilities in Georgia, Alabama and Mississippi with 4.4 million retail customers.