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Commentary: Pressing Forward With Vogtle, a Nuclear MVP

January 6, 2018

Georgia wasn’t looking for an award or recognition when we set out to build new nuclear reactors in our state. Yet we now find ourselves as the last team on the field as our commissioners unanimously voted to move forward with a new cost and schedule for the Plant Vogtle new nuclear units—keeping the project alive just months after South Carolina walked off the field. This “experiment” here in Georgia is all that is left of the nuclear renaissance bludgeoned by cheap natural gas prices and a Japanese tsunami. Here is why I wanted to move forward.

Plant Vogtle is one of two Georgia nuclear sites. The plant’s existing two units came online in 1987 and 1989 amid cost overruns and controversy and now serve the state’s energy consumers as the crown jewel of our generation fleet. Disappointingly, Units 3 and 4 are running behind schedule and set to cost substantially more than we anticipated—almost double. The success of the first two units clearly played a role in us moving forward, with the hindsight that the addition of two more units most likely will work out.…

DOE Offers Another $3.7 Billion in Loan Guarantees for Vogtle Project

September 30, 2017

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Energy Secretary Rick Perry said in a statement that the “future of nuclear energy in the United States is bright” as his agency on September 29 announced another $ 3.7 billion in loan guarantees for continued construction of two new nuclear reactors at Plant Vogtle in Georgia.

The Department of Energy (DOE) has guaranteed another $ 1.67 billion to Georgia Power, $ 1.6 billion to Oglethorpe Power, and $ 415 million to three subsidiaries of the Municipal Electric Authority of Georgia. The money is in addition to $ 8.3 billion already guaranteed by the DOE to support construction of the two AP1000 reactors at the plant near Waynesboro, Georgia. The long-delayed project to add two new units to the two existing reactors at Vogtle has been plagued by construction problems and cost overruns; the current timeline to complete construction is now near the end of 2022. Analysts say the cost for the project will go well above $ 20 billion.…

Georgia PSC Signals Support Continuing Vogtle Expansion

August 17, 2017

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In two actions on August 15, the Georgia Public Service Commission (PSC) signaled its support for the Vogtle nuclear expansion project, provided it can be done economically,

Georgia Power must show revised cost and schedule estimates to finish the costly Vogtle nuclear expansion as well as indicate whether it intends to finish the much-delayed construction project in its next construction monitoring report, which is due on August 31, one motion requires.

The PSC voted 4–1 on the motion put forth by Commission Chairman Stan Wise. The motion also requires Georgia Power to address whether the commission should approve revisions to project costs and schedule.

“This vote today sends a message to the Company, the Company’s partners, ratepayers, and Wall Street that the Commission continues to be supportive of this project provided it can be done economically,” Chairman Wise said in a statement. “This information will help us in deciding the appropriateness of whether this project should go forward or not go forward.”…

Cost Overruns at Vogtle Expected to Soar

June 21, 2017

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Georgia Power officials say the utility continues to work with its partners in the troubled Vogtle nuclear plant to firm up construction timelines and determine the costs to complete two new units at the facility. At the same time, a group opposed to the project and two long-time project consultants say ballooning costs should put an end to the plan.

A recent report from the consultants—William Jacobs, Jr., the project’s independent construction monitor since 2009, and Steven Roetger, the GPSC’s lead analyst for the project—to the Georgia Public Service Commission (GPSC) said the Vogtle project, already billions of dollars over budget and years behind schedule, is not economically viable, with a recommendation it should be abandoned.

The news comes just days after Southern Co., parent of Georgia Power, and Westinghouse reached a deal in which Westinghouse parent Toshiba agreed to pay Southern $ 3.68 billion to keep the project moving forward and continue the process of moving project management at Vogtle Units 3 and 4 from Westinghouse to Georgia Power.…

Southern Company Could Delay Plant Vogtle Decision Until Late Summer

May 30, 2017

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CEO Tom Fanning told Southern Co.’s shareholders attending the company’s annual meeting on May 24 that a decision on how to proceed with the Plant Vogtle nuclear expansion could take several more months.

The Vogtle expansion—one of two new nuclear construction projects underway in the U.S. utilizing Westinghouse’s AP1000 technology—has been in limbo, albeit still in progress, since Westinghouse filed for bankruptcy in late March. Yesterday, Reuters reported that Westinghouse had “reached a deal to borrow $ 800 million after allaying creditors’ concerns that the money would be flowing to non-bankrupt affiliates overseas.”

But that news doesn’t seem to have made Southern Co.’s decision to proceed with Plant Vogtle Units 3 and 4 any easier. Following the annual meeting, The Atlanta Journal-Constitution reported that despite company officials previously stating that they had hoped to have a decision by today, or at least in June, Fanning is now aiming for August or “late summer.”

Less than two weeks ago, Southern Co. subsidiary Georgia Power announced that it had reached a new service agreement, which would allow for the transition of project management from Westinghouse to Southern Nuclear and Georgia Power “once the current engineering, procurement and construction contract is rejected in Westinghouse’s bankruptcy proceedings.”…

Vogtle, V.C. Summer Project Owners Buy More Time to Mull Fate of Nuclear Units

May 1, 2017

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The owners of the Vogtle and V.C. Summer nuclear expansions separately secured a few more weeks to allow work to continue onsite at each project while they decide how to proceed with the half-built AP1000 reactors after Westinghouse’s financial debacle.

In Georgia, owners of the project to expand Plant Vogtle extended an interim assessment agreement with Westinghouse until May 12. But Georgia Power’s parent company Southern Co. also revealed it is negotiating a new service agreement that could engage Westinghouse to provide design, engineering, and procurement services in the event Southern Nuclear Operating Co.—Southern Co.’s nuclear unit operations arm—takes over management of construction at Units 3 and 4.

And in South Carolina, owners of the project to expand V.C. Summer extended a similar agreement through June 26. The project owners detailed their concerns and options in a recent ex parte briefing at the South Carolina Public Service Commission (PSC)

Vogtle Agreement Extended Until May 12

Georgia Power and Vogtle’s other owners on April 28 extended an interim assessment agreement with Westinghouse before it was set to expire, giving them until May 12 to assess the project.…