ATLANTA, Dec. 12, 2017 /PRNewswire/ -- 2017 was a
year of construction progress for the Vogtle expansion with 6,000
people from across the country onsite working to move the Vogtle
nuclear expansion forward. The new units at Plant Vogtle (co-owned
by Georgia Power, Oglethorpe Power, MEAG Power and Dalton
Utilities) are the only new nuclear units currently under
construction in the United States
and, once complete, will generate enough electricity to power
approximately 500,000 homes and businesses.
Significant milestones and announcements this year included:
- February – The energization of the Unit 4 switchyard.
Once the new units are online, the switchyard takes energy from the
plant and feeds it onto the power grid to serve customers across
the state.
- March – Westinghouse, the primary contractor for the
Vogtle nuclear expansion and designer of the AP1000 technology
being used for the new units, files for bankruptcy. Georgia Power
and the other co-owners were prepared for this possibility and
immediately put an interim assessment agreement (IAA) in place that
allowed work to continue at the site. The IAA remained in place
throughout the summer, keeping thousands of workers engaged and
construction moving forward. At the construction site, 19 new
operators pass the initial licensing exam by the Nuclear Regulatory
Commission. Once operational, the new units will employ
approximately 75 highly trained nuclear operators as part of a
permanent workforce of more than 800.
- May – A new service agreement that allows for the
transition of project management from Westinghouse to Southern
Nuclear (the Southern Company subsidiary which operates the
existing units at Plant Vogtle) and Georgia Power is
announced.
- June – Georgia Power enters a new agreement with
Toshiba, the parent company of Westinghouse, affirming the value of
Toshiba's guarantee at $3.68 billion.
Parent guarantees were put in place to protect Georgia electric customers as part of the
original contract for the project.
- July – The service agreement is finalized with
Westinghouse which allows Southern Nuclear to oversee construction
activities at the site. The scope of the service agreement includes
engineering, procurement and licensing support from Westinghouse,
as well as access to Westinghouse intellectual property needed for
the project.
- August – The first steam generator is placed for Vogtle
Unit 3. The 1.4 million-pound steam generator marked the first
major lift with Southern Nuclear in charge of oversight activities
at the construction site. On August
31, Georgia Power filed a recommendation, supported by all
of the other co-owners, to continue construction of the Vogtle
project with the Georgia PSC. The recommendation was based on the
results of a comprehensive schedule, cost-to-complete and
cancellation assessment.
- September – Georgia Power announces a new agreement with
the U.S. Department of Energy (DOE) for a conditional commitment of
approximately $1.67 billion in
additional loan guarantees. 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. Major milestones at the construction
site include the placement of the deaerator for Unit 4 and the Unit
3 steam generator.
- October – Georgia Power receives the first parent
guarantee payment from Toshiba in the amount of $137 million. This payment was a positive
indication of Toshiba's commitment to meeting its financial
obligation to the company and customers. Major milestones at the
construction site include a critical concrete 'super placement,'
lasting 71 hours, for Unit 3 and the lift of the 237-ton CA03
module for Unit 4.
- November – Paul Bowers,
chairman, president and CEO of Georgia Power, appears with the
other co-owner CEOs at the Georgia PSC in support of the unified
recommendation to move forward. Read Bowers' comments here. At the
construction site, the last of the "Big 6" modules, the 52-ton CA02
module for Unit 4 is placed.
- December – Georgia Power announces a new agreement with
Toshiba to receive all remaining scheduled payments from Toshiba in
the amount of approximately $3.2
billion by Dec. 15, 2017.
Georgia Power's proportionate share of the payments is
approximately $1.47 billion with
every dollar to be used to benefit customers. Receiving 100 percent
of the funds owed by Toshiba will eliminate one of the greatest
risks for continuing construction of the Vogtle project.
To view all of the progress made this year, and since the
beginning of construction, visit the Georgia Power YouTube Channel
and view new photos added each month in the Plant Vogtle 3 & 4
Online Photo Gallery.
Vogtle Project Review & Cost Update
The Georgia
PSC is reviewing the recommendation to move forward filed on
August 31 and is expected to make a
decision regarding the future of the Vogtle 3 and 4 project as part
of the 17th Vogtle Construction Monitoring (VCM) proceeding. Read
the 17th VCM Report here.
From the beginning of the Vogtle expansion, Georgia Power has
worked to pursue all available benefits for customers and minimize
the impact of the new units on electric bills. In addition to this
month's announcement that the Vogtle co-owners have reached an
agreement to receive 100 percent of parent guarantee funds
available from Toshiba (approximately $3.2
billion) by Dec. 15, 2017, the
company recently announced a conditional commitment of
approximately $1.67 billion in
additional loan guarantees for the project from the U.S. Department
of Energy (DOE). Today, after including anticipated customer
benefits from federal production tax credits, interest savings from
loan guarantees from the DOE and the fuel savings of nuclear
energy, the projected peak rate impact to Georgia Power retail
customers is approximately 10 percent, with 5 percent related to
the project already in rates – well below original projections of
approximately 12 percent.
Final approval and issuance of the 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 the new agreement with Toshiba, expected
benefits of the DOE loan guarantees, expected 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
and the new agreement; 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