2022 CC Transition Report Spreads Flat Final - Flipbook - Page 20
Tax considerations
Environmental responsibility
Keeping safety first and serving the community
Our Just Transition also has included working to help
ensure local communities are not inappropriately
impacted by an abrupt change in tax revenue. Within
the communities we serve, our plants are often
substantial taxpayers. While the counties in which each
plant resides could see an impact to annual property
and sales taxes when plants are retired, we remain
committed to continuing to invest in communities across
the states we serve, including the affected counties.
Additionally, tax obligations may continue throughout
the company’s decommissioning efforts and do not stop
immediately upon a unit’s retirement date.
Southern Company will follow its Environmental
Principles in the transition of plant sites, including a
commitment to environmental remediation, restoration
or recycling and reuse, as appropriate. Readying the site
of a former coal-fired generating facility for its next
life requires extensive preparation and diligence for an
environmentally responsible future. Preparing sites for
a renewed purpose is often a multiyear process. That
preparation includes accounting for building material
and equipment removal, determining which assets
can be repurposed for future energy production, and
developing a plan for materials removal and remediation
to help ensure a site is suited for redevelopment.
Valerie Wade served as plant manager of Plant Gorgas
and managed the facility’s closure. Wade, who went
on to become plant manager of the gas-fired Central
Alabama Generating Station in Billingsley, emphasized
the importance of keeping Safety First and serving
the community.
In some cases, the tax base associated with a coal-fired
generating facility can represent as much as 25% to 30%
of a county’s property tax base, especially in rural areas.
Removing that revenue stream could present a hardship
for the county and for businesses that our workers
support. As our operating companies reach decisions to
close plants, they typically work closely with regulators,
taxing authorities and local communities to identify
financial impacts.
For example, in the case of Plant Gorgas, prior to
Alabama Power’s retirement decision, the facility had
several years remaining in its expected lifespan. We
worked with tax assessors to analyze the implications
of retiring the facility and determined that Alabama
Power’s ad valorem tax obligations to Walker County on
the retired facility should continue over the remaining
years of the plant’s original useful lifespan. While we
may not always be able to achieve a similar outcome,
we endeavor to effectuate a smooth transition for
our communities.
6,000
cubic yards
Ferrous
metal
137
million pounds
When possible, we work with local and regional partners
to remove, process and recycle materials – another
way we can contribute to supporting local economies
and jobs.
Copper
Stainless &
other alloys
2.4
2.83
million pounds
“From beginning to end, it was important that we took
care of the community during retirement as well as we
did while we were operating.”
Removal, recycling and repurposing covers a host of
materials and equipment – from recyclable metals to
concrete. First steps include identifying and creating
an inventory of remaining materials and equipment.
Materials that no longer have a useful life are sent
to landfills for proper disposal. Many materials such
as remaining equipment, tools, copper, steel, brass,
aluminum and other materials can safely be
repurposed and recycled.
Readying former coal sites involves removing, repurposing and recycling significant amounts of building
materials and equipment. This has included more than:
Concrete
“I’m proud that we kept people whole and safe
during the decommissioning process,” said Wade. “The
community is such a big part of what we do and who
we are – without the community, we’re not there.”
million pounds
Aluminum
Brass
2.85
250,000 1.6
million pounds
pounds
Repurposed
equipment
million pounds
Former Plant Gorgas
“From beginning to end, it was important that we took care of the
community during retirement as well as we did while we were operating.”
– Valerie Wade, Alabama Power
*Materials removed for repurposing and recycling from Plants Gorgas, Kemper & McIntosh through Q4 2021
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Just Transition Report
Just Transition Report
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