AARP opposes Oklahoma nuclear plant legislation

The AARP said Thursday it opposes legislation it said would make it easier for electric utilities to raise consumer rates to help finance a nuclear power plant in Oklahoma _ even before the plant is finished and producing electricity.

Officials of the senior advocacy group said Oklahoma's elderly residents are struggling just to pay their medical and prescription drug costs and that raising electric rates during a bad economy is a bad idea.

"I don't think consumers can handle the burden," said Sean W. Voskuhl, associate state director for advocacy of the AARP in Oklahoma.

About 70 members of AARP traveled to the state Capitol to meet with lawmakers and discuss the organization's legislative agenda. While AARP has no policy against using nuclear energy to generate electricity, Voskuhl said bills pending in the Legislature could lead to higher electric rates to help pay for a multibillion dollar nuclear plant.

"You're really giving them a blank check," Voskuhl said. "This is a huge financial burden to the ratepayers of Oklahoma."

He said the legislation shifts the financial risk of building the plant from utility shareholders to the ratepayers.

"If the plant's not built, consumers still have to pay for it," Voskuhl said.

AARP officials said many Oklahomans are already facing the possibility of higher electric rates.

Just last week, Oklahoma Gas and Electric Co. _ the state's largest utility _ asked the Oklahoma Corporation Commission to increase rates by a little more than $110 million, which would raise average electric rates for OG&E's residential customers in the state by about $8 per month.

Republican leaders in the Oklahoma House are supporting a variety of legislation that promote alternative energy sources, including nuclear power.

The author of one bill, Rep. Scott Martin, R-Norman, has said no Oklahoma-based power producer has expressed an interest in building a nuclear plant and that none are big enough to do it alone.

Among other things, Martin's bill would establish a review process for the Oklahoma Corporation Commission to consider nuclear power proposals. It would also create a task force to consider tax changes that would encourage construction of a nuclear plant in Oklahoma.

Martin's bill was approved by the House Energy and Utility Regulation Committee last month and is pending on the House floor. He did not immediately return a telephone call seeking comment on the AARP's position.

There are currently 104 nuclear plants in the United States in 34 states including Arkansas, Kansas, Texas and Missouri, but none in Oklahoma. According to the Nuclear Energy Institute, there are 17 applications for 26 nuclear plants currently under consideration, including several in Texas.

The AARP said a nuclear power plant would likely cost between $6 billion and $10 billion and that consumer rate increases of 20 percent to 40 percent are possible based on an analysis of similar legislation in other states.

The AARP said pending legislation would fundamentally tilt the ratemaking system against electric consumers and is unnecessary. It said the Corporation Commission is already required to balance the interests of regulated utilities and the public, including the upfront costs of major investments like nuclear power plants.

The organization also said it supports a variety of bills it believes would enhance the quality of health care in the state and improve long-term care but opposes legislation that would eliminate staffing ratios for nursing facilities.