In addition, there is no cap on how high JEA's obligations will go based on the continued increases in the cost of constructing the reactors. JEA's agreement to purchase power for 20 years from Plant Vogtle stipulates that JEA will pay even if the reactors never produce any power. That report noted that even if the project were canceled, MEAG still could continue to bill for repayment of debt issued for the nuclear plant. "MEAG Power currently is in the process of evaluating the estimated increases to the project budget," MEAG said in information filed Wednesday with the Municipal Securities Rulemaking Board. They are expected to decide by the end of September, according to Moody's. Southern Company wants to keep building the two new reactors at Plant Vogtle and says they will be ready to go online in 20.īut Oglethorpe Power and MEAG Power must agree to keep going or else the construction will halt. Southern Nuclear is a leader among the nation’s nuclear energy operators, running six units for Alabama Power and Georgia Power. In addition to MEAG, other co-owners of the two reactors being built are Oglethorpe Power Corp. JEA's connection to Plant Vogtle comes through the Municipal Electric Authority of Georgia, also known as MEAG Power, that serves dozens of Georgia communities. The rising tab shows "the ongoing challenges and execution risk with the continued construction of the Vogtle project," said Jeff Casella, senior credit officer for Moody's. Moody's Investors Services issued a downgrade to Georgia Power's rating, saying the increase comes just eight months after utility regulators signed off on the previous round of increased cost estimates. Southern Company's subsidiary Georgia Power is the main owner of Plant Vogtle and will shoulder $1.1 billion of the additional $2.3 billion cost. JEA did not have an immediate reaction Thursday to the escalating costs, which Southern Company announced on Wednesday, or whether JEA wants to see construction continue. A consultant hired by JEA said in February it might be time to put JEA up for sale based on the hot market for utility mergers and acquisitions, but the consultant said investors would look warily at taking over JEA's contract to purchase power from Plant Vogtle. Plant Vogtle was one of the most discussed aspects of JEA when a special City Council committee this year examined the future of the utility. As a result, the rising construction expense can spill over to higher costs for JEA, which already wanted to exit the agreement even before the latest surge in costs. JEA is locked into a controversial agreement to purchase power from the Municipal Electric Authority of Georgia, which is a co-owner of the reactors being built about 30 miles southeast of Augusta, Ga. During the consultation, LPO will work with you to determine whether the project is eligible for a loan or loan guarantee.The budget-busting Plant Vogtle nuclear plant that JEA is grudgingly helping to finance is facing a $2.3 billion spike in construction costs, according to an announcement this week that will force a decision on whether the project is continued. These are the only commercial nuclear reactors under construction in the United States today when completed, they will be the first new commercial nuclear reactors constructed in the United States in 30 years.įor information on how LPO could support your advanced nuclear energy project and to learn about LPO's process before formally applying, request a no-fee, no-commitment Pre-Application Consultation. Southern Company today reported first-quarter earnings of 862 million, or 79 cents per share, in 2023 compared with earnings of 1.03 billion, or 97 cents per share, in the first quarter of 2022. deployment of this innovative technology in the United States. These two 1,100 megawatt Westinghouse AP1000® nuclear reactors represent the first U.S. energy company Southern Co (SO. The DOE loan guarantees to Georgia Power Company have financed the construction of Units 3 and 4 at the Vogtle Electric Generating Plant. Plant Vogtle is an example of how the DOE Loan Programs Office (LPO) is supporting energy infrastructure projects that promote economic growth and strengthen our energy and national security. Nuclear energy is essential to achieving the Biden-Harris Administration’s goal of achieving a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050. energy company Southern Co (SO.N) on Thursday stuck to the previously disclosed estimated costs and startup dates for its Georgia Power utility's share of two nuclear.
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