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By Max Blau for Georgia Health News
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Series: Sunken Costs
Coal Ash in Georgia
Mark Berry raised his right hand, pledging to tell the whole truth and nothing but the truth. The bespectacled mechanical engineer took his seat inside the cherry-wood witness stand. He pulled his microphone close to his yellow bow tie and glanced left toward five of Georgia’s most influential elected officials. As one of Georgia Power’s top environmental lobbyists, Berry had a clear mission on that rainy day in April 2019: Convince those five energy regulators that the company’s customers should foot the bill for one of the most expensive toxic waste cleanup efforts in state history.
When Berry became Georgia Power’s vice president of environmental affairs in 2015, he inherited responsibility for a dark corporate legacy dating back to before he was born. For many decades, power companies had burnt billions of tons of coal, dumping the leftover ash — loaded with toxic contaminants — into human-made “ponds” larger than many lakes. But after a pair of coal-ash pond disasters in Tennessee and North Carolina exposed the environmental and health risks of those largely unregulated dumps, the Obama administration required power companies to stop using the aging disposal sites.
Berry had spent nearly two decades climbing the ranks of Southern Company, America’s second-largest energy provider and the owner of Georgia Power. By the time he was under oath that day, company execs had vowed to store newly burnt coal ash in landfills designed for safely disposing of such waste. But an unprecedented challenge remained: Figuring out what to do with 90 million tons of coal ash — enough to fill more than 50 Major League Baseball stadiums to the brim — that had accumulated over the better part of a century in ash ponds that were now leaking.
Georgia Power would have to shut down roughly 30 ponds from the Appalachian foothills to the wetlands near the Georgia coast. After draining all the ponds, the company would have two options for disposing of the highly contaminated dry ash left behind: It could either move the ash into a landfill fitted with a protective liner, or pack the dry ash into a smaller footprint and place a cover on top — leaving a gaping hole in the ground that, in some places, would be the larger than Disneyland. The former would cost more but vastly reduce the possibility of toxic leakage; the latter lowered expenses but would perpetually risk contaminating drinking water in neighboring communities.
As scientists had grown more aware of the threat posed by coal ash, Southern states like Virginia and North Carolina had forced utilities to move ash into lined landfills. But Georgia was something of an outlier. The state historically was known as a coal ash capital, a place where lawmakers touted their pro-business bona fides by denouncing regulations, and Georgia Power had a track record of delaying or blocking efforts to regulate pollution. The company was lobbying hard for the cheaper option.
Of course, the $7.3 billion price tag wasn’t all that cheap. Sitting on the Georgia Public Service Commission’s witness stand, Berry and his top deputy spent hours arguing that the whopping costs of cleaning up Georgia Power’s coal-ash ponds should be passed along to its customers. If Berry could persuade the regulators that the costs were both “reasonable” and “prudent,” the company could tack a monthly fee onto the bills of 2.2 million residential customers for decades to come, which would work out to each customer footing $3,300 of the bill to clean up the company’s mess. If he failed, the commissioners could effectively force Georgia Power to eat those costs — a major blow to investors in a publicly traded company that has annual operating revenues of over $8 billion.
During Berry’s testimony, PSC commissioner Tim Echols said he has concerns about putting ratepayers on the hook for the costs of cleaning up the ash ponds — and whether Georgia Power is spending more than it has to. “This is enormously expensive,” he said.
Berry didn’t mention that the cleanup costs could increase by billions of dollars if Georgia’s environmental officials adopted the safer standards used by neighboring states. Anticipating Echols’ next question, Berry said that Georgia Power’s $7.3 billion plan was the “most cost-effective way” to comply with coal-ash regulations.
“If we were to do something less,” Berry added, state environmental officials “would force us to go back and redo what we did not do right the first time.”
Had those five energy regulators swiveling in their chairs asked more pointed questions about Georgia Power’s waste-disposal practices, Berry would have been pressured to tell a long-hidden story about ash and avarice. In the second half of the 20th century, Georgia Power had saved money by building some of America’s largest coal-ash ponds without a protective liner underneath, despite knowing some of the risks of contaminating residents’ drinking water. It had also sought to do as little as possible to protect drinking water that’s now believed to be tainted by coal-ash toxins.
A yearlong investigation by Georgia Health News and ProPublica has revealed that Georgia Power and its parent company have spent millions of dollars on lobbying tactics to dodge billions in environmental costs. Thousands of pages of previously unpublished documents obtained by the news organizations shed new light on how Georgia Power leveraged political tensions to reduce a massive financial liability that could decimate its bottom line — and how it pushed disinformation to distance itself from patterns of sickness among people who lived near its coal-ash ponds.