Plant Vogtle partners get first $300 million “guarantee” payment

3:55 p.m Monday, Oct. 2, 2017 Business and Money news
Plant Vogtle nuclear expansion under construction. BRANT SANDERLIN / BSANDERLIN@AJC.COM

Georgia Power said it received $300 million from Toshiba Corp. Monday, the first installment of almost $3.7 billion aimed at covering cost overruns at the troubled Plant Vogtle project.

The Japanese conglomerate promised to pay $3.68 billion in installments after Westinghouse Corp., formerly a key contractor at Plant Vogtle, filed bankruptcy in March.

Georgia Power, the largest owner in the project to build two new nuclear reactors at the Plant Vogtle site near Augusta, said it will receive $137 million from the first installment.

“This payment is a positive indication of Toshiba’s commitment to meeting its financial obligation under the parent guarantee, which was put in place to protect Georgia electric customers as part of the original contract for the project,” Georgia Power said in a statement.

But there’s some question over whether Toshiba, which is wobbly itself, will be able to keep up with its payments under the guarantee. The last installment is to be paid in early 2021.

Toshiba, which was hit hard by losses on Plant Vogtle construction, has warned in recent months that it may not be able to continue as a “going concern.”

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