Report: Southern Co. to get loan for reactors

By David Markiewicz

The Atlanta Journal-Constitution

Georgia Power parent Southern Co. is one of four companies in line to split $18.5 billion in federal government loan guarantees that would be used to build new nuclear power facilities, according to a news report.

Southern Nuclear spokeswoman Beth Thomas said Wednesday she could not confirm a story in The Wall Street Journal that the utility is among those that have been chosen from an initial group of 19 applications from 17 electric power companies for the aid.

Thomas said, however, that Southern believes it "is a good fit" for the program, and that the loan guarantees would be "a great benefit."

Industry analysts say that because of the cost involved and the financial risk to creditors, nuclear reactor construction nowadays requires the security of government loan guarantees to be built.

Georgia Power is planning two new reactors at its Plant Vogtle facility in Waynesboro, near Augusta. The utility's portion of the total estimated $14 billion cost will be $6.4 billion. Construction of the reactors is expected to be completed by 2017.

Last month, a U.S. Department of Energy spokesperson said the Georgia Power project was getting closer scrutiny because it was further along in obtaining a license from the Nuclear Regulatory Commission.

The DOE has not made a formal announcement of its selections, a DOE spokesperson said Wednesday.