Georgia Power Co. announced Tuesday that delays in conducting the tests mean the first new unit at their Vogtle plant is unlikely to start generating electricity until January at the earliest. The unit at Atlanta-based Southern Co. had been aiming for completion in recent years, the first unit in November, but officials told investors last month that it would likely be ready by December. The company’s employees said Tuesday that testing began in late April, would take three weeks longer than expected, and probably wouldn’t be completed before the end of June, which would mean more time for construction and commissioning. The additional month will add an additional $ 48 million to the cost of the two nuclear power plants being built alongside two existing units near Augusta. The project is now expected to cost more than $ 26 billion for all owners, including Georgia Power, electricity cooperatives and public utilities. Ultimately, most Georgia electronics customers, except for those in the northwest corner of the state served by subsidiaries of the Tennessee Valley Authority, will have to pay for the facility. Florida’s Jacksonville Electric Authority is also required to purchase electricity from Vogtle. The further delay was announced in a regular hearing with the Georgia Public Service Commission to discuss spending and construction progress on the only nuclear power plant built in the US. The commissioners will ultimately have to decide how much of Georgia Power’s share of the spending is allowed and how the payment of the 2.6 million tariff payers bill will be phased in. Customers are already paying for part of the system. Rates have increased 3.4% to pay for past costs and rates for Georgia Power projects will increase an additional 6.6 percentage points for an overall increase of 10%. The reactors approved in 2012 were originally valued at a total of $ 14 billion with the first, and the new reactor was originally scheduled to begin production in 2016. Delays and costs skyrocketed, especially after the main contractor filed for bankruptcy in 2017. The company and regulators insist that the facility is the best source of clean and reliable energy for Georgia in the future. The first new reactor is 98% complete, but Aaron Abramovitz, vice president of Southern Nuclear, said the risk of delays and problems is not going away. “I would expect the risk to decrease,” he told regulators. “I wouldn’t expect the risk to go down to zero.” Georgia Power has agreed to write off the first $ 700 million over the $ 7.3 billion approved by the Public Service Commission. The company currently forecasts spending of $ 8.7 billion, plus borrowing costs, which interest payers will also have to pay back. The company could request repayment of part of the $ 7.3 billion amount. “If the cost goes over $ 7.3 billion, it doesn’t mean the cost is non-recoverable. It just means that the standard of evidence there has changed and got higher,” said Jeremiah of Georgia Power Haswell.
ATLANTA –
Georgia Power Co. announced Tuesday that delays in conducting the tests mean that the first new unit at their Vogtle plant is not expected to start generating electricity until January at the earliest.
The unit at Atlanta-based Southern Co. had attempted to complete the first unit in November for the past few years, but officials told investors last month that it was expected to be completed in December. Company employees said Tuesday that testing began in late April, would take three weeks longer than expected, and probably wouldn’t be completed before the end of June, which would mean more time for construction and commissioning.
The extra month adds another $ 48 million to the cost of the two nuclear power plants, which will be built alongside two existing plants near Augusta. The project is now expected to cost more than $ 26 billion for all owners, including Georgia Power, electricity cooperatives and public utilities. Ultimately, most Georgia electronics customers, except for those in the northwest corner of the state served by subsidiaries of the Tennessee Valley Authority, will have to pay for the facility. Florida’s Jacksonville Electric Authority is also required to purchase electricity from Vogtle.
The further delay was announced in a regular hearing with the Georgia Public Service Commission to discuss spending and construction progress on the only nuclear power plant built in the US. The commissioners will ultimately have to decide how much of Georgia Power’s share of the spending is allowed and how the payment of the 2.6 million interest payers bill will be gradually filed.
Customers are already paying for part of the system. Rates have increased 3.4% to pay for past costs and rates for Georgia Power projects will increase an additional 6.6 percentage points for an overall increase of 10%.
The reactors approved in 2012 were originally valued at a total of $ 14 billion. The first new reactor was originally scheduled to go into operation in 2016. Delays and costs skyrocketed, especially after the main contractor filed for bankruptcy in 2017. Regulators insist the facility is the best source of clean and reliable energy for Georgia going forward.
The first new reactor is 98% complete, but Aaron Abramovitz, vice president of Southern Nuclear, said the risk of delays and problems is not going away.
“I would expect the risk to decrease,” he told regulators. “I wouldn’t expect the risk to go to zero.”
Georgia Power has agreed to write off the first $ 700 million over the $ 7.3 billion approved by the Public Service Commission. The company currently forecasts spending of $ 8.7 billion, plus borrowing costs, which interest payers will also have to pay back. The company could request repayment of part of the $ 7.3 billion amount.
“If that $ 7.3 billion is exceeded, it doesn’t mean the cost is non-recoverable. It just means that the standard of evidence there has changed and it has gotten higher,” said Jeremiah Haswell of Georgia Power.
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