ATLANTA, June 9, 2017 /PRNewswire/ -- Georgia Power, the
largest electric subsidiary of Southern Company, has entered into a
new agreement with Toshiba, the parent company of Vogtle contractor
Westinghouse. The agreement, approved by the U.S. Department of
Energy, affirms the value of Toshiba's guarantee at
$3.68 billion –
providing additional protections for Georgia electric customers following
Westinghouse's March bankruptcy. Additionally, Georgia Power and
Westinghouse have finalized a new service agreement which allows
for the transition of project management at the Vogtle expansion
from Westinghouse to Southern Nuclear and Georgia Power. The
service agreement is subject to approval of the Westinghouse Board
of Directors and certain other conditions, including bankruptcy
court approval. The project is co-owned by Georgia Power,
Oglethorpe Power, MEAG Power and Dalton Utilities.
"We are pleased with today's positive developments with
Toshiba and Westinghouse that allow momentum to continue at
the site while we transition project management from Westinghouse
to Southern Nuclear and Georgia Power," said Paul Bowers, chairman, president and CEO of
Georgia Power. "We are continuing to work with the project's
Co-owners to complete our full-scale schedule and cost-to-complete
analysis and will work with the Georgia Public Service Commission
to determine the best path forward for our customers."
"We are happy to have Toshiba's cooperation in connection with
this agreement which provides a strong foundation for the future of
these nuclear power plants," said Thomas A.
Fanning, chairman, president and CEO of Southern
Company.
In addition to affirming the value of $3.68 billion in parent guarantees from Toshiba,
the new agreement also adds clarity on the timing and form of
payments for that obligation. Parent guarantees were put in place
to protect Georgia electric
customers as part of the original contract and the first payment
under the new agreement is due from Toshiba in October 2017.
The scope of the service agreement with Westinghouse includes
engineering, procurement and licensing support, as well as access
to Westinghouse intellectual property needed for the project. The
agreement will take effect after approval of the bankruptcy court
and rejection of the current engineering, procurement and
construction contract by Westinghouse. The interim assessment
agreement, which has allowed progress to continue on the
construction site, has been extended through June 22.
About Georgia Power
Georgia Power is the
largest electric subsidiary of Southern Company (NYSE: SO),
America's premier energy company. Value, Reliability, Customer
Service and Stewardship are the cornerstones of the company's
promise to 2.5 million customers in all but four
of Georgia's 159 counties. Committed to delivering clean,
safe, reliable and affordable energy at rates below the national
average, Georgia Power maintains a diverse, innovative generation
mix that includes nuclear, 21st century coal and natural gas, as
well as renewables such as solar, hydroelectric and wind. Georgia
Power focuses on delivering world-class service to its customers
every day and the company is consistently recognized by J.D. Power
and Associates as an industry leader in customer satisfaction. For
more information, visit www.GeorgiaPower.com and connect
with the company on Facebook (Facebook.com/GeorgiaPower), Twitter
(Twitter.com/GeorgiaPower) and Instagram
(Instagram.com/ga_power).
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in
this communication is forward-looking information based on current
expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things,
statements concerning scheduled payments under the guarantee
agreement, satisfaction of conditions to the effectiveness of the
service agreement, and other future actions related to Plant Vogtle
Units 3 and 4. Georgia Power cautions that there are certain
factors that could cause actual results to differ materially from
the forward-looking information that has been provided. The reader
is cautioned not to put undue reliance on this forward-looking
information, which is not a guarantee of future performance and is
subject to a number of uncertainties and other factors, many of
which are outside the control of Georgia Power; accordingly, there
can be no assurance that such suggested results will be realized.
The following factors, in addition to those discussed
in Georgia Power's Annual Report on Form 10-K for the
year ended December 31, 2016, and subsequent securities
filings, could cause actual results to differ materially from
management expectations as suggested by such forward-looking
information: the results of Westinghouse's bankruptcy filing and
the impact of any inability or other failure of Toshiba to perform
its obligations under its guarantee, including any effect on the
engineering, procurement and construction agreement for Plant
Vogtle Units 3 and 4, the construction of Plant Vogtle Units 3 and
4, and the U.S. Department of Energy loan guarantees; state and
federal rate regulations and the impact of pending and future rate
cases and negotiations; the impact of recent and future federal and
state regulatory changes, as well as changes in application of
existing laws and regulations; current and future litigation,
regulatory investigations, proceedings, or inquiries; available
sources and costs of fuels; effects of inflation; the ability to
control costs and avoid cost overruns during the development
construction and operation of facilities, which include the
development and construction of generating facilities with designs
that have not been finalized or previously constructed; the ability
to construct facilities in accordance with the requirements of
permits and licenses, to satisfy any environmental performance
standards and the requirements of tax credits and other incentives,
and to integrate facilities into the Southern Company system upon
completion of construction; advances in technology; legal
proceedings and regulatory approvals and actions related to Plant
Vogtle Units 3 and 4, including Georgia Public Service Commission
approvals and Nuclear Regulatory Commission actions; interest rate
fluctuations and financial market conditions and the results of
financing efforts; changes in The Southern Company's or Georgia
Power's credit ratings, including impacts on interest rates, access
to capital markets, and collateral requirements; the impacts of any
sovereign financial issues, including impacts on interest rates,
access to capital markets, impacts on foreign currency exchange
rates, counterparty performance, and the economy in general, as
well as potential impacts on the benefits of U.S. Department of
Energy loan guarantees; and the effect of accounting pronouncements
issued periodically by standard setting bodies. Georgia Power
expressly disclaims any obligation to update any forward-looking
information.
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SOURCE Georgia Power