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Government extends Vogtle loan guarantee

Thursday, Oct. 3, 2013 5:32 PM
Last updated 8:13 PM
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The owners of Plant Vogtle have secured a fourth extension to allow further negotiation with the U.S. Energy Department over its 2010 offer of up to $8.3 billion in federal loan guarantees to help finance two new nuclear reactors.

The most recent extension expired Sept. 30. The new extension will allow discussions to continue until Dec. 31.

“There continues to be constructive dialogue in the loan guarantee negotiations between the company and the Department of Energy, and we are cautiously optimistic as we work toward the December deadline,” Southern Co. spokeswoman Jeannice Hall said in an e-mail.

Georgia Power and co-owners Oglethorpe Power and Municipal Electric Authority of Georgia were conditionally approved in February 2010 for loan-guarantee financing, in which the government promises to assume a company’s debt if the company defaults.

A final agreement was never reached, however, and details of the ongoing negotiations are confidential.

The government’s $8.3 billion offer included up to $3.46 billion for Georgia Power, which owns a 45.7 percent stake in the project; up to $3.05 billion for Oglethorpe, which owns 30 percent; and up to $1.8 billion for MEAG, which owns 22.7 percent.

The project’s remaining 1.6 percent is owned by Dalton Utilities.

The new Westinghouse AP-1000 reactors under construction at the Burke County site are scheduled to go online in 2017 and 2018.


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