ATLANTA, Feb. 28, 2018 /PRNewswire/ -- Georgia Power
today filed its 18th Vogtle Construction Monitoring
(VCM) Report with the Georgia Public Service Commission (PSC). The
18th VCM Report, available here, includes a revised,
lower projected rate impact for customers and outlines continued
progress and productivity improvement at the construction site near
Waynesboro, Georgia. The report
also reaffirms the target in-service dates of November 2021 (Unit 3) and November 2022 (Unit 4) and that completing the
new units remains the best cost option to meeting the future energy
needs of Georgia.
The company files a VCM Report every six months to provide an
update on construction progress and other information related to
the construction of the nation's only new nuclear units. Today's
filing chronicles the last six months of 2017 and marks the first
VCM update since Georgia Power received unanimous approval from the
Georgia PSC in December 2017 to move
forward with construction of Vogtle 3 & 4.
Savings & Benefits for 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. The projected peak rate impact
for customers included in today's report has been reduced to 9.8
percent with more than half of this impact already in place on
bills. This projected rate impact is well below original
projections of approximately 12 percent thanks to new federal tax
laws, anticipated customer benefits from federal production tax
credits (PTCs), interest savings from loan guarantees from the U.S.
Department of Energy (DOE), and the fuel savings of nuclear
energy.
Over the past several months, the company has announced multiple
positive developments delivering savings and benefits for customers
and reducing the expected cost of the plant, including:
- Full payment from Toshiba of $3.68
billion in parent guarantee payments to Georgia Power
and the other Vogtle co-owners, Oglethorpe Power, MEAG Power and
Dalton Utilities. Toshiba made the payments as the parent company
of former primary Vogtle contractor Westinghouse. Parent guarantees
were put in place to protect Georgia electric customers as part of the
original contract for the Vogtle nuclear expansion. The payments
will reduce the total cost of the plant for Georgia Power with
every dollar received from Toshiba being used to benefit
customers.
- Customers will pay $139
million less than previously expected due to the impact
of new federal tax laws and the receipt of the full amount of
parent guarantee payments from Toshiba. The savings will be
delivered beginning in April 2018
through a reduction in the Nuclear Construction Cost Recovery
tariff on customers' bills.
- $188 million, a total of
$75 each for individual customers, in
bill credits as a direct result of the Toshiba parent guarantee
payments. The credits were approved by the Georgia PSC as part of
its order to continue construction with Vogtle 3 & 4 and will
be distributed across three separate Georgia Power bills in
2018.
- Approximately $1 billion in
benefits for customers due to the recent extension of federal
PTCs. 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.
- $500 million in expected
customer savings due to $5
billion in anticipated loan guarantees from the U.S. DOE,
including $1.67 billion under a new
conditional commitment. 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.
Progress & Productivity
Vogtle 3 & 4 remains
the most important energy infrastructure project currently underway
in Georgia with more than 6,000
workers onsite and approximately 800 full time careers once the new
units begin operating. The 18th VCM Report illustrates
that, following the Westinghouse bankruptcy in March 2017, all Vogtle co-owners worked together
to mitigate impacts and 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.
According to the 18th VCM Report, since Southern
Nuclear assumed overall project management in 2017, productivity at
the construction site has improved and direct construction work is
currently tracking ahead of the plan to achieve the target
in-service dates.
Progress and milestones noted in the second half of 2017
include:
- The successful negotiation and transition to a new services
agreement with Westinghouse to provide design, engineering and
support services for the project.
- Construction progress on both units, including the installation
of key modules and components such as both steam generators and the
Pressurizer for Unit 3, and structural modules CA02 and CA03 for
Unit 4. Additionally, thousands of tons of rebar and tens of
thousands of cubic yards of concrete placed throughout the
site.
- Major equipment deliveries to the site including squib valves
for both units, the Passive Residual Heat Removal Heat Exchanger
for Unit 4 and Unit 4 Reactor Vessel Internals. A vast majority of
modules and equipment needed to complete the project is now
onsite
- Increased licensing efficiencies reached with the Nuclear
Regulatory Commission (NRC) related to the number of Inspection,
Test, Analysis and Acceptance Criteria (ITAAC) from approximately
875 per unit to 450 per unit. This effort did not reduce the scope
of the ITAAC program, but streamlined the administrative
requirements to both the company and the NRC.
- Continued transition to testing and startup activities for the
new units, including the onboarding of 14 licensed operators from
the V.C. Summer project in South
Carolina, saving nearly two years of training time and
costs.
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 the expected in-service dates for Plant
Vogtle Units 3 and 4, expected customer rate impacts, expected cost
savings and customer benefits 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, 2017, 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 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; the uncertainty surrounding the recently
enacted federal tax reform legislation, including implementing
regulations and Internal Revenue Service interpretations, actions
that may be taken in response by regulatory authorities, and its
impact, if any, on the credit ratings of Georgia Power;
current and future litigation or 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 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 NRC 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