ATLANTA, Sept. 29, 2017 /PRNewswire/ -- Georgia Power
announced today that it has reached an agreement with the U.S.
Department of Energy (DOE) for a conditional commitment of
approximately $1.67 billion in
additional loan guarantees for the Plant Vogtle nuclear expansion
project near Waynesboro, Ga.
Georgia Power had previously secured loan guarantees of
$3.46 billion for the construction of
Vogtle units 3 and 4, the first to be built in the United States in more than 30 years.
With a total of more than $5
billion in anticipated DOE loan guarantees, Georgia Power
expects to be able to provide more than $500
million in present-value benefits to its
customers.
"We thank the DOE for their support and commitment to the Vogtle
3 and 4 project," said Paul Bowers,
chairman, president and CEO of Georgia Power. "From the outset,
Georgia Power and the project co-owners have worked to minimize the
impact of the project on our customers' bills and these additional
loan guarantees will help us continue to reduce our financing
costs."
"Today's announcement reflects the wide-ranging governmental
support for nuclear energy in America," said Bowers. "The
administration, Secretary Rick
Perry, the entire cabinet and members of Congress from both
sides of the aisle have been exceedingly helpful with the
construction of the Vogtle 3 and 4 project."
Georgia Power owns 45.7 percent of the new units, with the
project's other Georgia-based
co-owners including Oglethorpe Power, MEAG Power and Dalton
Utilities. On August 31, Georgia
Power filed a recommendation with the Georgia Public Service
Commission (PSC) to continue construction of the Vogtle nuclear
expansion supported by all of the project's other co-owners. The
recommendation was based on the results of a comprehensive
schedule, cost-to-complete and cancellation assessment launched
following the bankruptcy of Westinghouse in March. The Georgia PSC
is expected to review the recommendation and make a decision
regarding the future of the Vogtle 3 and 4 project as part of
the 17th Vogtle Construction Monitoring (VCM) proceeding. Read more
here.
Final approval and issuance of these additional loan guarantees
by the DOE cannot be assured and are subject to the negotiation of
definitive agreements, completion of due diligence by the DOE,
receipt of any necessary regulatory approvals, and satisfaction of
other conditions.
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, 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 future actions related to Plant Vogtle Units
3 and 4 and the expected benefit of the DOE loan guarantees.
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 impact of any inability or other failure of
Toshiba to perform its obligations under its guarantee; the impact
of any failure to extend the in-service deadline for federal
production tax credits; the impact of any failure to amend the DOE
loan guarantee to allow for additional borrowings; 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 DOE 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