Georgia Power announced today it will get all of the crucial payments this month from the parent company of its former main contractor for the two new nuclear reactors at Plant Vogtle.
Georgia Power and its partners in the new reactors will receive the remaining $3.2 billion it is owed from Toshiba by Dec. 15 instead of monthly payments scheduled to go through the end of 2020. The companies had already received $455 million in payments.
Georgia Power’s share of the new payments would be $1.47 billion. The agreement to make the remainder of payments is still subject to approval by Toshiba’s board and the U.S. Department of Energy.
Toshiba is the parent company of Westinghouse, which declared bankruptcy last March. After a thorough analysis, Georgia Power and its partners decided in August to proceed with finishing the two new reactors, which would be the first to come on line in the U.S. in decades. In its filing with the Georgia Public Service Commission asking to proceed with the projects, Georgia Power said receiving the Toshiba payments was critical to making the projects financially viable for the company and its customers.
“We are pleased to have reached this constructive agreement with Toshiba regarding the parent guarantees for the Vogtle project and every dollar will be used to benefit our customers,” said Georgia Power CEO Paul Bowers. “We remain committed to making the right decisions for our state’s energy future and continue to believe that completing both Vogtle units represents the best economic choice for customers and preserves the benefits of carbon-free, baseload generation for Georgia electric customers.”
The Public Service Commission is currently reviewing the request and receiving testimony about the project and hearings will resume next Monday with testimony from the public. A decision on whether to proceed is scheduled for Feb. 6.
If completed, the reactors are now scheduled to come on line in 2021 and 2022.
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