Augusta Economy

More News | Fort Gordon | Plant Vogtle | Savannah River Site | Editor

Georgia Power to ask PSC to approve higher Vogtle costs

Georgia Power's costs increase

Thursday, Feb. 28, 2013 2:14 PM
Last updated Friday, March 1, 2013 1:30 AM
  • Follow Latest News

Georgia Power Co. told state regulators Thursday that its share of Plant Vogtle expansion costs has risen by 8.6 percent, or $381 million, and announced new projected completion dates a year later than previous schedules.

Back | Next
The first of the two reactors under construction at Plant Vogtle is now not expected to be complete until late 2017, a delay of a year.  SPECIAL
SPECIAL
The first of the two reactors under construction at Plant Vogtle is now not expected to be complete until late 2017, a delay of a year.

“Many of these costs are driven by the construction schedule extension to fourth quarter 2017 and fourth quarter 2018 for Units 3 and 4, respectively,” the nuclear plant’s primary owner disclosed in its newest construction monitoring report to the Public Service Commission.

Previous schedules called for the two new reactors to be completed in No­vember 2016 and November 2017.

Georgia Power’s cost increase is proportionate to its 45.7 percent ownership share, meaning the total increase in construction costs will be much higher when other owners’ shares are considered.

Those owners are Ogle­thorpe Power, which owns 30 percent; the Muni­cipal Electric Authority of Geor­gia, which owns 22.7 percent; and Dalton Utilities, with a 1.6 percent share.

In an interview to discuss the report, Buzz Miller, the executive vice president of nuclear development for Georgia Power and Southern Nuclear, said the project’s total price tag – $14 billion – will remain roughly the same, despite the increase in construction costs.

“The cost of financing has gone down, so while we
have an increase in real construction, that ($14 billion) is still a valid estimate,” he said.

The extra time needed to complete the project is the primary reason for the cost increase, he said.

“This is about having staff out there for a longer period of time,” he said. “The bulk of this is purely schedule extension, not rework or tearing anything our to do over again.”

Many major portions of the project are complete, and most regulatory issues have been resolved, he said, meaning the new projected completion dates should prove accurate.

“We think this is a good, valid approximation,” Miller said. “It gives us appropriate time to complete the project.”

Just this week, he said, one of two license amendment requests that will allow the critical pouring of the “nuclear concrete” basemat foundation was approved by the U.S. Nuclear Regulatory Commission, and
approval of the second amendment request is expected soon.

The concrete pour is likely to occur sometime in March.

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.
soapy_725
43672
Points
soapy_725 03/01/13 - 06:30 am
0
0
Who, outside of the ARC government,
Unpublished

didn't know that there would be delays and cost overruns on a private/government project. Please raise your hands. Then bend over.

bubbasauce
20573
Points
bubbasauce 03/01/13 - 11:57 am
1
0
JOBS!

JOBS!

Back to Top

Search Augusta jobs