Toshiba pays Georgia Power final money owed on Vogtle project

[private]Toshiba Corp. announced Thursday it has paid $3.2 billion to Georgia Power and its partners on the Plant Vogtle nuclear project, which was the remaining amount owed on the cost-overrun plagued reactors that are still several years from completion.

Toshiba had earlier paid $455 million to Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities over the failure of Westinghouse Electric, a Toshiba subsidiary, to complete construction work on the project.

“With the payment, Toshiba eliminates future risk of foreign currency exchange fluctuations,” the Tokyo-based conglomerate said in a news release.

Westinghouse was the prime contractor on the Vogtle project before filing for bankruptcy last March.  Southern Nuclear, which is owned by Georgia Power’s parent firm, the Southern Co., is now managing the project.

Georgia Power, which holds a 45.7 percent share of the Vogtle project, said its proportionate share of the final payout will be $1.47 billion, with the remainder divided up among its partners.

The Toshiba payment was announced as the Public Service Commission is mulling the question of whether it should authorize the Plant Vogtle project to continue or to shut down. A decision is due by Dec. 21.

Georgia Power has estimated it would have to spend at least $12.2 billion as its share of finishing the project and wants the PSC to allow it to pass along all of those costs to ratepayers.

PSC staffers and analysts, on the other hand, contend that Georgia Power should be authorized to spend only $9 billion on the project — any amount over that would make the project uneconomic for ratepayers.

© 2017 by The Georgia Report


Tags: Georgia Power , Plant Vogtle , Toshiba