State Allows Georgia Power To Continue Nuclear Plant Expansion

ATLANTA, GA — The Georgia Public Service Commission has unanimously given the green light for Georgia Power to complete its controversial project to build two nuclear units at Plant Vogtle. The commission voted Thursday for the public utility to complete units 3 & 4 at the plant in Waynesboro, which is located south of Augusta.

Georgia Power states the two units will be the country's first nuclear units in three decades, and will be co-owned by itself, Oglethorpe Power, MEAG Power and Dalton Utilities. They are also the only new nuclear units currently under construction in the United States.

Unit 3 is expected to come online in November 2021 while Unit 4 should follow in November 2022. Georgia Power stipulates they both will generate enough emission-free electricity to power about 500,000 homes and businesses.

"The decision to complete Vogtle 3 & 4 is important for Georgia's energy future and the United States," said Paul Bowers, Georgia Power chairman, president and CEO. "The Georgia Public Service Commission has shown leadership in making this complex and difficult decision and recognized that the Vogtle expansion is key to ensuring that our state has affordable and reliable energy today that will support economic growth now and for generations to come."

Thursday's action followed months of review and evaluation of a unified recommendation presented to the Georgia PSC on Aug. 31 by the Vogtle co-owners. The recommendation was based on the results of a comprehensive schedule, cost-to-complete and cancellation assessment that was prompted by the bankruptcy of former primary Vogtle contractor Westinghouse in March and the subsequent rejection of the fixed-price contract.

Georgia Power notes the decision will protect customers by imposing new penalties for delays and cost increases in addition to penalties included in the previous stipulated agreement approved earlier this year by the Georgia PSC. Under this amended structure, shareholders will see a significant impact of approximately $750 million through November 2022 and the company has agreed to further reductions if the project does not meet the revised and approved in-service dates. Additionally, as a result, the amount paid by customers will be reduced by more than $1.7 billion during the construction period.

Gov. Nathan Deal praised the commission's decision to continue the plant expansion, commending the body for its "vision and foresight in approving the continuation" of the project while holding owners accountable to ratepayers.

“Investing in clean, sustainable energy infrastructure is a worthwhile endeavor that will have a positive economic impact as well," he added. "Plant Vogtle Units 3 and 4 will provide affordable energy to Georgians for more than 60 years while creating 6,000 jobs during project construction and 800 well-paying, permanent ones after. It is important that we stay the course.”

Photo: This June 13, 2014, file photo, shows construction on a new nuclear reactor at Plant Vogtle power plant in Waynesboro, Ga. (AP Photo/John Bazemore, File)