Georgia Power today filed a recommendation with the Georgia Public Service Commission (PSC) to continue construction of the Vogtle nuclear expansion near Augusta, Georgia. The project's co-owners, Oglethorpe Power, MEAG Power and Dalton Utilities, all support the recommendation.
The recommendation is based on the results of a comprehensive schedule, cost-to-complete and cancellation assessment. The Georgia PSC is expected to review the recommendation and make a decision regarding the future of the Vogtle 3 & 4 project as part of the 17th Vogtle Construction Monitoring (VCM) proceeding. It has been widely reported that four of the five commissioners have recently indicated they would approve of the expansion project continuing to completion.
In separate statements, Oglethorpe Power said its board approved of the project's continuation. Westinghouse Electric Company said it "applauded" the decision to continue with construction of two Westinghouse designed AP1000 reactors.
"Completing the Vogtle 3 & 4 expansion will enable us to continue delivering clean, safe, affordable and reliable energy to millions of Georgians, both today and in the future," said Paul Bowers, chairman, president and CEO of Georgia Power. "The two new units at Plant Vogtle will be in service for 60 to 80 years and will add another low-cost, carbon-free energy source to our already diverse fuel mix."
Based on all factors considered, completing both units represents the most economic choice for customers and preserves the benefits of carbon-free, baseload generation. Assessments of the project included robust economic analyses; evaluation of various alternatives including abandoning one or both units or converting the units to gas-fired generation; and assumptions related to potential risks including future payments from Toshiba, availability of production tax credits and extension of loan guarantees from the Department of Energy (DOE). The latter two benefits were prescribed in the Energy Policy Act of 2005.
Georgia Power expects Vogtle Unit 3 will reach commercial operation in November 2021 and Unit 4 in November 2022. The total rate impact of the project remains less than the original estimate, after including anticipated customer benefits from federal production tax credits, interest savings from loan guarantees from the DOE and the fuel savings of nuclear energy. Once the project is on line, the company should still be able to offer retail rates below the national average with the additional long-term benefits from this new source of clean and reliable energy.
"Since the beginning of the Vogtle expansion, we have worked to minimize the impact of this critical project on customers' monthly bills and, even as we assessed our options of whether or not to continue the project, our focus has been to ensure long-term value," added Bowers. "Today, the total cost of electricity from Georgia Power is significantly below the national average, and when the project is completed, we expect that the new units will help keep energy bills competitive."
Georgia Power, which owns 45.7 percent of the new units, has invested approximately $4.3 billion in capital costs in the project through June 2017 and estimates that its cost to complete the project is approximately $4.5 billion, for a total Georgia Power capital cost forecast of approximately $8.8 billion. The Georgia PSC has already approved $5.68 billion in capital costs for Georgia Power's share of the project. With $1.7 billion in anticipated payments from Toshiba, the company's potential additional capital costs are approximately $1.4 billion. Based on the new assessments, the total estimated capital cost forecast for 100 percent of the project is approximately $19 billion.
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So they really think this is going to be 19 billion dollars? ha!!!! What kind of math are they using??