Georgia Power receives first payment from Toshiba for new Vogtle units
Tuesday, Oct 03, 2017
  • $300 million payment is a significant step towards meeting their $3.68 billion parent guarantee obligation

Georgia Power has received the first parent guarantee payment from Toshiba for the Plant Vogtle nuclear expansion project near Waynesboro, Ga. The $300 million payment, of which $137 million is Georgia Power's proportionate share, is the first of multiple scheduled payments to Georgia Power and the other project co-owners totaling $3.68 billion.

This payment is a positive indication of Toshiba's commitment to meeting its financial obligation under the parent guarantee, which was put in place to protect Georgia electric customers as part of the original contract for the project. From the beginning of the Vogtle expansion, Georgia Power has worked to minimize the impact of the new units on customer bills. Today, the total expected 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 U.S. Department of Energy (DOE) and the fuel savings of nuclear energy.

Georgia Power owns 45.7 percent of the new units, with the project's other Georgia-based co-owners including Oglethorpe Power, MEAG Power and Dalton Utilities. On August 31, Georgia Power filed a recommendation with the Georgia Public Service Commission (PSC) to continue construction of the Vogtle nuclear expansion supported by all of the project's other co-owners. The recommendation was based on the results of a comprehensive schedule, cost-to-complete and cancellation assessment launched following the bankruptcy of Westinghouse in March. The Georgia PSC is expected to review the recommendation and make a decision regarding the future of the Vogtle 3 and 4 project as part of the 17th Vogtle Construction Monitoring (VCM) proceeding.

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