ATLANTA, July 29, 2021 /PRNewswire/ -- Georgia Power today
announced a revised schedule and cost forecast for the Vogtle 3
& 4 nuclear expansion project, resulting from productivity
challenges and additional time for testing and quality assurance.
The company currently projects a Unit 3 in-service date in the
second quarter of 2022 and a Unit 4 in-service date in the first
quarter of 2023, representing a three-to-four-month shift for each
unit. The company has also revised the total project capital cost
forecast to reflect this updated schedule – resulting in a
$460 million increase to Georgia
Power.
"Georgia Power is focused on safety and quality as we complete
this project," said Chris Womack,
chairman, president and CEO of Georgia Power. "Vogtle 3 & 4
remains a critical investment for the state to provide low-cost,
reliable and emissions-free electricity for the state of
Georgia for 60 to 80 years. This
is too important to our customers, our state and our nation for us
not to get it right, and we will."
Georgia Power's share of the total project capital cost forecast
is now $9.2 billion, although the
company has not sought approval of any capital costs above the
$7.3 billion previously approved by
the Georgia Public Service Commission. Additionally, there are
special protections in place for customers during construction,
including a reduction in the company's return on investment for the
project. Every month of delay in the project equates to an
incrementally lower return, which translates to lower bill impacts
during construction. For future, final cost recovery, an open and
transparent prudency review is planned near the completion of Unit
4.
"We knew building the first new nuclear units in the U.S. in
more than 30 years would be challenging. The project has endured
extraordinary circumstances during construction, including the
pandemic as the most recent. Through these challenges, we have
learned a great deal. Unit 3 Hot Functional Testing has now been
successfully completed with no significant issues identified, which
is a critical step toward completion," Womack added.
With the completion of Unit 3 Hot Functional Testing, Unit 3
direct construction is now 99% complete, with the total Vogtle 3
& 4 expansion project approximately 93% complete. The
completion of hot functional testing marks a significant step
towards commercial operations. During hot functional testing, plant
systems achieved normal operating pressure and temperature, without
nuclear fuel, to verify the successful operation of reactor
components and systems together.
Carbon-free energy source
The new Vogtle units are an
essential part of Georgia Power's commitment to deliver safe,
clean, reliable and affordable energy for customers and play a
significant role in supporting Southern Company's goal of net-zero
carbon emissions by 2050.
Once operating, the two new units at Plant Vogtle will be able
to power more than 500,000 homes and businesses. A diverse fuel
mix, including nuclear, is also essential to maintaining a reliable
and affordable energy infrastructure that attracts new investment,
supports economic growth and creates jobs.
With more than 7,000 workers on site, and more than 800
permanent jobs available once the units begin operating, Vogtle 3
& 4 is currently the largest jobs-producing construction
project in the state of Georgia.
The project has also been an economic development driver for the
region during construction.
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 2.6
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 recognized by J.D. Power 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 release 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 projected
cost and schedule for completion of Plant Vogtle units 3 and 4 and
expected job creation. Georgia Power cautions that there are
certain factors that can 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, 2020, Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2021
and June 30, 2021, and subsequent
securities filings, could cause actual results to differ materially
from management expectations as suggested by such forward-looking
information: the potential effects of the continued COVID-19
pandemic; the ability to control costs and avoid cost and schedule
overruns during the development, construction, and operation of
facilities or other projects, including Plant Vogtle Units 3 and 4,
which includes components based on new technology that only within
the last few years began initial operation in the global nuclear
industry at this scale, due to current and future challenges which
include, but are not limited to, changes in labor costs,
availability and productivity, challenges with management of
contractors or vendors, subcontractor performance, adverse weather
conditions, shortages, delays, increased costs, or inconsistent
quality of equipment, materials, and labor, contractor or supplier
delay, delays due to judicial or regulatory action, nonperformance
under construction, operating, or other agreements, operational
readiness, including specialized operator training and required
site safety programs, engineering or design problems or any
remediation related thereto, design and other licensing-based
compliance matters, including, for nuclear units, inspections and
the timely submittal by Southern Nuclear of the Inspections, Tests,
Analyses, and Acceptance Criteria documentation for each unit and
the related investigations, reviews and approvals by the U.S.
Nuclear Regulatory Commission ("NRC") necessary to support NRC
authorization to load fuel, challenges with start-up activities,
including major equipment failure, or system integration, and/or
operational performance, and challenges related to the COVID-19
pandemic; the ability to overcome or mitigate the current
challenges at Plant Vogtle Units 3 and 4 that could further impact
the cost and schedule for the project; legal proceedings and
regulatory approvals and actions related to construction projects,
such as Plant Vogtle Units 3 and 4, including Public Service
Commission approvals and NRC actions; under certain specified
circumstances, a decision by holders of more than 10% of the
ownership interests of Plant Vogtle Units 3 and 4 not to proceed
with construction and the ability of other Vogtle owners to tender
a portion of their ownership interests to Georgia Power following
certain construction cost increases; the ability to construct
facilities in accordance with the requirements of permits and
licenses (including satisfaction of NRC requirements), 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; the
inherent risks involved in operating and constructing nuclear
generating facilities; the ability of counterparties of Georgia
Power to make payments as and when due and to perform as required;
the direct or indirect effect on Georgia Power's business resulting
from cyber intrusion or physical attack and the threat of physical
attacks; catastrophic events such as fires, earthquakes,
explosions, floods, tornadoes, hurricanes and other storms,
droughts, pandemic health events, political unrest or other similar
occurrences; and the direct or indirect effects on Georgia Power's
business resulting from incidents affecting the U.S. electric grid
or operation of generating or storage resources. Georgia Power
expressly disclaims any obligation to update any forward–looking
information.
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SOURCE Georgia Power