ATLANTA, Feb. 9, 2018 /PRNewswire/ -- Georgia
Power today praised members of the U.S. Congress for voting to
approve new legislation to extend the deadline for receiving
advanced nuclear production tax credits. The approval follows
extensive bipartisan efforts by Georgia Senator Johnny
Isakson and other members of the Senate Finance Committee on
the legislation which, if signed into law, will further reduce risk
for continuing construction of Vogtle 3 & 4 while also
providing approximately $1 billion in
benefits for Georgia Power customers. The Vogtle nuclear expansion
is leading the way for new nuclear construction in the United States and, once complete, will
generate enough electricity to serve 500,000 homes and
businesses.
"We are grateful to Senator Isakson for his leadership on this
issue, and to the entire Georgia
delegation for recognizing the importance of new nuclear generation
and demonstrating renewed federal support for the Vogtle project,"
said Paul Bowers, chairman,
president and CEO of Georgia Power. "At Georgia Power, we are
focused on delivering value to our customers every day and we're
committed to completing these new units, which will provide
millions of Georgians with carbon-free energy and help keep
electric rates low for 60 to 80 years into the future."
The Energy Policy Act of 2005 created a credit for production
from advanced nuclear power facilities commonly referred to as
Production Tax Credits (PTCs). Under this law, the Vogtle project
will qualify for the advanced nuclear facility federal income tax
credit of 1.8 cents for each kWh of
electrical energy produced and sold once the units come online.
While PTCs do not impact the in-service cost of the units, they
provide benefits to customers through a reduction in revenue
requirements beginning when the units go into service and for many
years beyond.
Federal support and constructive legislation continue to be an
important key to success for Vogtle 3 & 4. Georgia Power
recently announced that, due to new federal tax laws, as well as
the positive impact of the receipt of the full amount of parent
guarantee payments from Toshiba, Georgia electric customers will pay
$139 million less than expected for
the Plant Vogtle expansion in 2018. Read more here. Additionally,
the company holds a conditional commitment from the U.S. Department
of Energy (DOE) for approximately $1.67
billion in additional loan guarantees for the Vogtle
project. With a total of more than $5
billion in anticipated DOE loan guarantees, the company
expects to be able to provide more than $500
million in present-value benefits to its customers.
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. Today, after
including anticipated customer benefits from federal PTCs, 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 well below original projections of
approximately 12 percent, with 5 percent related to the project
already in rates.
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.
Vogtle 3 & 4 Move Forward in 2018
Georgia Power received unanimous approval to continue
construction of the Vogtle 3 & 4 project from the Georgia
Public Service Commission (PSC) in December
2017. The decision followed months of review and evaluation
of a unified recommendation conducted by the Vogtle co-owners
prompted by the bankruptcy of former primary Vogtle contractor
Westinghouse. The decision continues to protect customers with new
penalties for delays and cost increases in addition to penalties
included in the previous stipulated agreement approved earlier in
2017 by the Georgia PSC. Under this amended structure, shareholders
will see a significant impact of approximately $750 million through November 2022. Read more about the decision to
complete Vogtle 3 & 4 here.
Construction has continued uninterrupted at the Vogtle site
following Westinghouse's bankruptcy in March
2017 with all Vogtle co-owners working together to maintain
the project's momentum. Southern Nuclear, the nuclear operating
subsidiary which operates the existing units in Georgia, is now the project manager at the
site with global construction firm Bechtel managing daily
construction efforts. Progress is steady and evident,
illustrated by multiple recent achievements such as the placement
of the 225,000-pound Unit 3 pressurizer in January and 1,300 cubic
yards of concrete placed inside the Unit 4 containment vessel in
December.
To follow the progress, visit the Georgia Power YouTube
Channel and view new photos added each month in the Plant
Vogtle 3 & 4 Online Photo Gallery.
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 expected
receipt of PTCs and the expected benefits thereof, 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
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