CEO says Vogtle overruns won't hit customers

  • Follow Local Business

ATLANTA — Cost overruns on the construction of two nuclear reactors at Plant Vogtle won’t make a significant impact on customers’ monthly power bills, the chief executive officer of Southern Co. said Thursday.

The company’s Georgia Power subsidiary has reported to regulators that construction spending is $381 million over budget and that additional overruns are possible. A dispute with the contractor has led to three federal lawsuits, and a loss in court could add $400 million to Georgia Power’s tab.

CEO Tom Fanning told a luncheon held by the Atlanta Press Club that the combined overage would be within the 6 to 8 percent range of predicted customer increases and well below the 12 percent originally projected.

“This will not raise rates for customers,” he said.

He said most of the $381 million overage was caused by the Nuclear Regulatory Commission issuing the construction go-ahead later than what the company had expected.

Fanning predicted no major changes in the design of the two reactors in response to risks identified in the 2011 disaster in Fuku­shima, Japan, but he did say federal regulators would order changes to existing reactors, including the two already operating at Plant Vogtle.

Instead of retiring those reactors, he said, the cost of the fix would still be a bargain for customers.

On Tuesday, a federal appeals court ruled that the NRC had taken into consideration the lessons of the Fukushima accident when granting the license for Vogtle’s expansion. Nine environmental groups had sued to halt construction on the grounds that more research into the disaster was needed. Construction didn’t halt for the lawsuits.

Comments (1) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
Bodhisattva
6144
Points
Bodhisattva 05/17/13 - 03:57 am
0
0
Some mighty fine double talk Mr. Fanning

Is it not going to raise rates, or not going to raise rates more than they already planned to raise them?

Back to Top

Top headlines

Paine president resigns

George C. Bradley resigned as president of the embattled Paine College on Tuesday as the institution continues efforts to maintain its accreditation after several years of financial mismanagement ...
Search Augusta jobs