Vogtle vote takes pressure off Georgia Power

Utility can wait until 1st reactor done

Tuesday, Sept. 3, 2013 12:55 PM
Last updated 8:25 PM
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ATLANTA — A debate over the rising cost of building two reactors at Plant Vogtle will be delayed for years under an agreement approved Tuesday by Georgia’s utility regulators.

Geor­gia’s Public Service Com­mis­sion unanimously approved a deal that will put off a decision on whether Georgia Power can raise its budget for building two more nuclear reactors at Plant Vogtle until the first is finished. An independent state monitor has estimated the first reactor will be finished in January 2018 at the earliest.

Regulators will continue monitoring company spending but will not make a decision on raising the bottom line budget figure.

Southern Co. subsidiary Geor­gia Power asked state regulators in February to raise its construction budget by $737 million to $6.85 billion. Georgia Power owns a roughly 46 percent stake in the new reactors. The other owners include Oglethorpe Power Corp., the Municipal Electric Authority of Georgia and the city of Dalton.

The budget request created a dilemma for regulators. If Georgia Power exceeds its state-approved budget of roughly $6.1 billion, then the utility has the burden of convincing regulators that the extra spending should be passed along to its customers. But if the commission had voted to increase the budget now, then the utility would be allowed under state law to charge its customers for the extra costs unless state regulators could prove the spending was reckless or the result of fraud.

Further complicating matters, Southern Co. and the plant owners are negotiating a legal dispute with the plant’s designers and builders worth an estimated $930 million to Georgia customers. Utility regulators said they were concerned that forcing Southern Co. to discuss its budget issues in public now might hurt its stance at the bargaining table.

The deal allows the utility to avoid a politically charged budget conflict as it deals with significant cost overruns on a separate coal gasification project in Mississippi and a rate case in Georgia.

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Bodhisattva 09/04/13 - 06:23 am
A shocking idea: Let the

A shocking idea: Let the shareholders absorb the cost overruns.

resident 09/04/13 - 08:23 am
No just kick the can

IT is a simple game of if we wait maybe they will forget about the 10 rate increases we have already hit them with. I am sure we will be the ones getting stuck footing the bill. What I do not understand is why the other companies are not absorbing some of these costs and just Georgia Power customers.

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