SUPPORTERS OF expanded solar energy won a moral victory last week in Atlanta — a move that will spark an important public debate in the Georgia Legislature next year about where and how Georgians purchase electricity produced by the sun.
The Georgia Public Service Commission, which regulates utilities throughout the state, voted 3-2 to endorse efforts by a start-up company to overturn a law that has divided the Georgia into geographic monopolies for 94 utilities run by cities, rural cooperatives and Georgia Power Co.
This upstart company, Georgia Solar Utilities Inc., wants its own monopoly as a generator of solar power, with permission to sell to retail customers.
However, this firm has a built-in problem. Because it can’t produce electricity when the sun isn’t shining, it will always be dependent on more traditional power companies to serve customers.
What the PSC did was set the table for lawmakers to consider changes to the 40-year-old Territorial Act, which carved up the state into regions. The theory behind this measure was that the public was better served through a monopoly system. The question for lawmakers next year is whether that system is outdated.
Consumers should pay attention. Several factors are in play.
Fostering competition is generally a positive thing. At the same time, the public needs to be concerned about companies that cherry-pick — serving only certain neighborhoods or regions to maximize profits, while ignoring others. Some consumers could be left out.
Then there’s the cloudy-day dilemma. Someone has to build and operate power plants so customers always have electricity. This comes at a cost.
Still, the idea of pushing more pollution-free solar energy is laudable. It’s certainly becoming a more affordable alternative, although electricity produced by fossil fuels remains less costly to produce.
For example, a huge obstacle to solar has been its relatively high cost. But that’s changing. The cost of photovoltaic panels is coming down. Indeed, it dropped 30 percent in the first six months of this year due to a price war between Chinese producers.
Clearly, technology is changing the game. But politics play a role as well.
PSC member Doug Everett, who voted for the solar resolution, said he was concerned that the Obama administration would push federal rules that would make burning coal prohibited or prohibitively expensive. “Just where are we going to get the generation to replace the coal industry?” he asked.
Georgia Power is investing in nuclear power as well as more solar to meet the state’s future energy needs.
But a majority on the PSC would like the state to dial up more electricity produced by the sun. Lawmakers next year will have to decide whether they agree and whether the public should go along.