ATLANTA, Dec. 8, 2017 /PRNewswire/ -- The U.S. Department
of Energy (DOE) has issued the final approval needed for Georgia
Power's new agreement with Toshiba, the parent company of former
primary Vogtle contractor Westinghouse, to receive all remaining
scheduled payments from Toshiba in the amount of approximately
$3.2 billion by Dec. 15, 2017. Georgia Power's proportionate
share of the payments is approximately $1.47
billion. To date, the Vogtle co-owners (Georgia Power,
Oglethorpe Power, MEAG Power and Dalton Utilities) have received
$455 million in total scheduled
payments from Toshiba under the parent guarantee for the Vogtle
project – a structure which was put in place to protect
Georgia electric customers as part
of the original contract.
"We are pleased to have reached this constructive agreement with
Toshiba regarding the parent guarantees for the Vogtle project and
every dollar will be used to benefit our customers," said
Paul Bowers, chairman, president and
CEO of Georgia Power when the agreement was announced on
Dec. 5. "We remain committed to
making the right decisions for our state's energy future and
continue to believe that completing both Vogtle units represents
the best economic choice for customers and preserves the benefits
of carbon-free, baseload generation for Georgia electric customers."
Vogtle Project Review Underway
On August 31, Georgia Power filed a recommendation
with the Georgia Public Service Commission (PSC) to continue
construction of the Vogtle nuclear expansion supported by all of
the project's other co-owners. The recommendation was based on the
results of a comprehensive schedule, cost-to-complete and
cancellation assessment launched following the Westinghouse
bankruptcy. The Georgia PSC is reviewing the recommendation to move
forward and is expected to make a decision regarding the future of
the Vogtle 3 and 4 project as part of the 17th Vogtle Construction
Monitoring (VCM) proceeding. Read the
17th VCM Report here and recent comments
from Georgia Power Chairman, President & CEO Paul Bowers to the Georgia PSC here.
From the beginning of the Vogtle expansion, Georgia Power has
worked to pursue all available benefits for customers and minimize
the impact of the new units on electric bills. In addition to the
agreement to receive 100 percent of parent guarantee funds
available from Toshiba by Dec. 15,
2017, the company recently announced a conditional
commitment of approximately $1.67
billion in additional loan guarantees for the project from
the U.S. Department of Energy (DOE). Today, after including
anticipated customer benefits from federal production tax credits,
interest savings from loan guarantees from the DOE and the fuel
savings of nuclear energy, the projected peak rate impact to
Georgia Power retail customers is approximately 10 percent, with 5
percent related to the project already in rates – well below
original projections of approximately 12 percent.
Final approval and issuance of the additional loan guarantees by
the DOE cannot be assured and are subject to the negotiation of
definitive agreements, completion of due diligence by the DOE,
receipt of any necessary regulatory approvals, and satisfaction of
other conditions.
About Georgia Power
Georgia Power is the largest
electric subsidiary of Southern Company (NYSE: SO), America's
premier energy company. Value, Reliability, Customer Service and
Stewardship are the cornerstones of the company's promise to 2.5
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, coal and natural
gas, as well as renewables such as solar, hydroelectric and wind.
Georgia Power focuses on delivering world-class service to its
customers every day and the company is consistently recognized by
J.D. Power and Associates as an industry leader in customer
satisfaction. For more information, visit
www.GeorgiaPower.com and connect with the company on Facebook
(Facebook.com/GeorgiaPower), Twitter (Twitter.com/GeorgiaPower) and
Instagram (Instagram.com/ga_power).
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this
communication is forward-looking information based on current
expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things,
statements concerning the new agreement with Toshiba, expected rate
impacts and other future actions related to Plant Vogtle Units 3
and 4. Georgia Power 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; accordingly, there
can be no assurance that such suggested results will be realized.
The following factors, in addition to those discussed in
Georgia Power's Annual Report on
Form 10-K for the year ended December 31,
2016, and subsequent securities filings, could cause actual
results to differ materially from management expectations as
suggested by such forward-looking information: the impact of any
inability or other failure of Toshiba to perform its obligations
under its guarantee and the new agreement; the impact of any
failure to extend the in-service deadline for federal production
tax credits; the impact of any failure to amend the DOE loan
guarantee to allow for additional borrowings; state and federal
rate regulations and the impact of pending and future rate cases
and negotiations; the impact of recent and future federal and state
regulatory changes, as well as changes in application of existing
laws and regulations; current and future litigation, regulatory
investigations, proceedings, or inquiries; available sources and
costs of fuels; effects of inflation; the ability to control costs
and avoid cost overruns during the development construction and
operation of facilities, which include the development and
construction of generating facilities with designs that have not
been finalized or previously constructed; 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 facilities into the Southern Company system upon
completion of construction; advances in technology; legal
proceedings and regulatory approvals and actions related to Plant
Vogtle Units 3 and 4, including Georgia Public Service Commission
approvals and Nuclear Regulatory Commission actions; interest rate
fluctuations and financial market conditions and the results of
financing efforts; changes in The Southern Company's or Georgia
Power's credit ratings, including impacts on interest rates, access
to capital markets, and collateral requirements; the impacts of any
sovereign financial issues, including impacts on interest rates,
access to capital markets, impacts on foreign currency exchange
rates, counterparty performance, and the economy in general, as
well as potential impacts on the benefits of DOE loan guarantees;
and the effect of accounting pronouncements issued periodically by
standard setting bodies. Georgia Power expressly disclaims any
obligation to update any forward-looking information.
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SOURCE Georgia Power