Georgia Power has cut $18 million from its planned nuclear expansion project at Plant Vogtle, informing state utility regulators Wednesday that their cost for the project is now $6.09 billion.
On the same day, Georgia Power's sister company, Southern Nuclear, which operates two reactors at Plant Vogtle, automatically shut down Unit 1 while workers did preventative maintenance, said Amoi Geter, spokeswoman for Southern Nuclear. Geter couldn’t say when it would start producing electricity again.
Georgia Power, in its required biannual report to the Public Service Commission, also said federal loan guarantees, production tax credits and other financing tools have saved utility customers $1.02 million so far.
The cost of Georgia Power’s portion of the project originally was approved for $6.4 billion but reduced to $6.09 billion after the utility was allowed to collect financing costs from customers. The $18 million in reductions stem from financing costs that were lowered “primarily as a result of changing in the timing of cash expenditures,” the report said.
The utility company also warned that the project numbers are prone to fluctuation; for instance, an earlier report from an independent construction monitor suggested cost overruns were possible.
“As with any project of this magnitude, the cost of several individual items will be greater than budgeted while the cost of others will be less than budgeted,” Wednesday’s report said.
The latest figures emerged from the utility’s cost and construction monitoring report that must be filed with the Public Service Commission every six months. The PSC will hold hearings and review testimony before it decides whether to approve the costs.
Commissioners can review previously approved project costs if there is a budget increase as part of a recent deal struck with the utility. Customers will pay for cost overruns in their monthly bills unless the PSC determines the overruns are Georgia Power’s fault.
Georgia Power is part of a group of utilities building two reactors at Vogtle. The first reactor is expected to produce power in 2016, the second in 2017. The project cost is estimated at $14 billion.
The utility still must obtain licensing from the Nuclear Regulatory Commission before it can begin heavy construction on the reactors. The company maintains it will receive this license near the end of the year, though federal regulators and executives from Georgia Power’s parent company have said the license may not be granted until early next year.
About the Author
