ATLANTA, Oct. 2, 2017 /PRNewswire/ -- Georgia Power
today announced that it has received the first parent guarantee
payment from Toshiba for the Plant Vogtle nuclear expansion project
near Waynesboro, Ga. The
$300 million payment, of which
$137 million is Georgia Power's
proportionate share, is the first of multiple scheduled payments to
Georgia Power and the other project co-owners totaling $3.68 billion.
This payment is a positive indication of Toshiba's commitment to
meeting its financial obligation under the parent guarantee, which
was put in place to protect Georgia electric customers as part of the
original contract for the project. From the beginning of the Vogtle
expansion, Georgia Power has worked to minimize the impact of the
new units on customer bills. Today, the total expected rate impact
of the project remains less than the original estimate, after
including anticipated customer benefits from federal production tax
credits, interest savings from loan guarantees from the U.S.
Department of Energy (DOE) and the fuel savings of nuclear
energy.
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.
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 scheduled payments from Toshiba, the
expected benefits of the DOE loan guarantee, expected customer rate
impacts, 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 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