Costs on Georgia Power's Plant Vogtle expansion are likely to go above what was originally expected, the project's independent construction monitor told the state Public Service Commission Wednesday.
The state's utility regulators soon may get additional details on a $400 million billing dispute and other possible cost overruns at Vogtle, but it will be too early to tell how much that would impact the wallets of Georgia Power customers.
"There are so many potential cost drivers out there," monitor William Jacobs said Wednesday. "I think ultimately the costs will go above the certified amount."
Georgia Power is responsible for $6.1 billion of the estimated $14 billion project. Documents based on the last six months of 2011 show the project tracking $28 million under budget. But scheduling delays have made the project's capital costs and financing costs go up, Jacobs said.
What's more, there may be additional costs from other changes at the project as well as from the $400 million billing dispute between the company and the Shaw Group and Westinghouse, he said.
Any increase in the project cost that ends up being Georgia Power's responsibility could be recouped from customers, per approval of the PSC.
"This commission will have the opportunity to review each and every one of those issues in the future -- and probably in the next six months," Commissioner Stan Wise said.
He challenged accusations made by consumer advocates that the public does not have an accurate representation of how much the project will cost because of how much information is being kept from them. However, much of that information is redacted in public documents, the advocates noted.
About $1.8 billion in construction costs had been spent at Vogtle through February 2012, testimony at Wednesday's hearing revealed. That amount doesn't include any cost overruns.
Early delays at the site, specifically the inability of the Shaw Group to design and build reactor components -- modules -- and deliver them on time, have led to increased costs, Jacobs said. Those issues have lingered for as long as two years.
Jacobs said Wednesday he thinks those concerns, as well as the dispute between the Shaw Group, Westinghouse and Georgia Power, may be resolved within the next six months.
"I think we're getting close on the modules," Jacobs said.
The PSC is expected to start reviewing those costs, but it's unlikely they will impact customer bills right away.
"That [$400 million] claim is a pretty high-profile item right now," Jacobs said. "If that claim gets settled, we'll have a discussion on it."
Jacobs said he has reviewed the details of the dispute "line by line" with one of Georgia Power's attorneys and company nuclear officials. Georgia Power remains adamant it is not responsible for that claim.
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