Ga. Power will take over Vogtle nuclear construction

[private]Georgia Power will take over the management of the Vogtle nuclear construction project under a new service agreement with Westinghouse.

The utility giant disclosed late Friday it has reached an agreement “in principle” with Westinghouse that “allows for the transition of project management from Westinghouse to Southern Nuclear and Georgia Power once the current engineering, procurement and construction contract is rejected in Westinghouse’s bankruptcy proceeding.”

“The interim assessment agreement will remain in place until June 3 while the new service agreement is finalized and all approvals are obtained,” Georgia Power said in a statement.

“During this time, work will continue at the site and an orderly transition of project management will begin,” the utility said. “As previously stated, the company will take all actions necessary to hold Westinghouse and Toshiba accountable for their financial obligations.”

Westinghouse filed for bankruptcy protection last month, in large part because of the billions of dollars in losses it has absorbed on the Vogtle project. Westinghouse’s parent company, Toshiba, is also teetering on the edge of bankruptcy.

With the Vogtle project already running about $3 billion over budget and nearly four years behind schedule, the Public Service Commission will have to decide whether Georgia Power’s shareholders or customers have to pay the additional costs caused by Westinghouse’s bankruptcy.

Georgia Power said it will continue working on a “cost-to-complete analysis” of Vogtle units 3 and 4 and confer with its consortium partners (Oglethorpe Power, MEAG Power, and Dalton Utilities) “to determine the best path forward for customers.”

Company officials have acknowledged that they may decide to complete just one reactor and convert the other to a natural gas-fired facility.

© 2017 by The Georgia Report

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Tags: Georgia Power , Plant Vogtle , PSC , Westinghouse