ATLANTA, July 30, 2015 /PRNewswire/ -- Georgia Power
has announced that it has received a total of $1.8 billion in loans to date from the Federal
Financing Bank (FFB) for the construction of the Plant Vogtle
nuclear expansion. This is roughly half of the $3.46 billion that the FFB will lend for the
project. Loans from the FFB for Georgia Power's share of the Vogtle
project are guaranteed under a 2014 agreement with the U.S.
Department of Energy (DOE) – a partnership which is delivering
hundreds of millions of dollars in expected benefits for
customers.
"As we reach the halfway point in expected federal loans, the
benefits of the Vogtle expansion we anticipate bringing to
customers remain overwhelmingly positive," said Buzz Miller,
executive vice president of nuclear development for Georgia Power.
"Georgia Power, and the other co-owners that have worked to
complete the loan guarantee process, recognized the value of
pursuing federal support for the first new U.S. nuclear units in
decades and are bringing real savings for the state's electric
customers."
The latest draw of $600 million
was secured with an interest rate set at 3.283 percent, fixed until
the loan's final maturity on February 20,
2044. In part due to the current capital market environment,
savings have exceeded estimates at the time the company secured the
loan guarantee. The company now estimates that present-value
benefits delivered to customers as a result of the DOE loan
guarantee have risen to $330 million.
With the latest draw, nearly $185
million of these benefits are now locked in for
customers.
Benefits for customers under the fulfillment of the DOE loan
guarantee are possible because of Georgia's constructive regulatory environment,
as well as the company's continued strong performance and credit
standing.
The construction of Plant Vogtle units 3 and 4 continues to be
the most economic choice for meeting Georgia's future energy needs. Georgia Power
estimates the total peak rate impact of the project on customer
rates will be 6 to 8 percent, substantially less than originally
estimated due to a variety of factors, including a proactive
financing strategy by the company.
The expansion at Plant Vogtle is part of Georgia Power's
long-term, strategic vision for providing safe, clean, reliable and
affordable energy for Georgians well into the future. Once Units 3
and 4 join the existing two Vogtle units already in operation,
Plant Vogtle is expected to generate more electricity than any U.S.
nuclear facility, enough to power more than one million homes and
businesses.
About Georgia Power
Georgia Power is the largest
subsidiary of Southern Company (NYSE: SO), one of the nation's
largest generators of electricity. Value, Reliability,
Customer Service and Stewardship are the cornerstones of the
company's promise to 2.4 million customers in all but four of
Georgia's 159 counties. Committed
to delivering clean, safe, reliable and affordable energy at rates
below the national average, Georgia Power maintains a diverse,
innovative generation mix that includes nuclear, 21st century coal
and natural gas, as well as renewables such as solar, hydroelectric
and wind. Consistently recognized as a leader in customer
service, Georgia Power was recently ranked highest in overall
business customer satisfaction among large utilities in the South
by J.D. Power and Associates. For more information, visit
www.GeorgiaPower.com and connect with the company on Facebook
(Facebook.com/GeorgiaPower) and Twitter
(Twitter.com/GeorgiaPower).
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this release
is forward-looking information based on current expectations and
plans that involve risks and uncertainties. Forward-looking
information includes, among other things, statements concerning
expected benefits to customers and expected customer rate
impacts. Georgia Power Company cautions that there are
certain factors that could cause actual results to differ
materially from the forward-looking information that has been
provided. The reader is cautioned not to put undue reliance on this
forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other
factors, many of which are outside the control of Georgia Power
Company; accordingly, there can be no assurance that such suggested
results will be realized. The following factors, in addition to
those discussed in Georgia Power
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2014, and subsequent
securities filings, could cause actual results to differ materially
from management expectations as suggested by such forward-looking
information: the impact of recent and future federal and state
regulatory changes and also changes in tax and other laws and
regulations to which Georgia Power Company is subject, as well as
changes in application of existing laws and regulations; current
and future litigation, regulatory investigations, proceedings, or
inquiries; the ability to control costs and avoid cost overruns
during the development and construction of facilities, which
include the development and construction of generating facilities
with designs that have not been finalized or previously
constructed, including changes in labor costs and productivity,
adverse weather conditions, shortages and inconsistent quality of
equipment, materials, and labor, contractor or supplier delay,
non-performance under construction or other agreements, operational
readiness, including specialized operator training and required
site safety programs, unforeseen engineering or design problems,
start-up activities (including major equipment failure and system
integration), and/or operational performance (including additional
costs to satisfy any operational parameters ultimately adopted by
the Georgia Public Service Commission ("PSC")); the ability to
construct facilities in accordance with the requirements of permits
and licenses, to satisfy any environmental performance standards
and the requirements of tax credits and other incentives, and to
integrate Plant Vogtle Units 3 and 4 into the Southern Company
system upon completion of construction; state and federal rate
regulations and the impact of pending and future rate cases and
negotiations, including rate actions relating to fuel and other
cost recovery mechanisms; legal proceedings and regulatory
approvals and actions related to the Plant Vogtle expansion,
including Georgia PSC approvals and Nuclear Regulatory Commission
actions and related legal proceedings involving the commercial
parties; the inherent risks involved in operating and constructing
nuclear generating facilities, including environmental, health,
regulatory, natural disaster, terrorism, and financial risks; the
ability of counterparties of Georgia Power Company to make payments
as and when due and to perform as required; the direct or indirect
effect on Georgia Power Company's business resulting from cyber
intrusion or terrorist incidents and the threat of terrorist
incidents; and catastrophic events such as fires, earthquakes,
explosions, floods, hurricanes and other storms, droughts, pandemic
health events such as influenzas, or other similar
occurrences. Georgia Power Company expressly disclaims any
obligation to update any forward-looking information.
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SOURCE Georgia Power