Southern Co.: ‘Weeks’ before we’ll know cost of Plant Vogtle expansion


A Southern Co. executive told state regulators that it will likely be up to “several weeks” before it knows how much it will cost to complete its troubled Plant Vogtle expansion.

Since the late-March bankruptcy of the project’s key contractor, Westinghouse Electric, Georgia Power, a subsidiary of Southern, has been spending about $50 million a month under an interim agreement with the contractor to keep work going at the plant near Augusta.

The interim agreement expires Friday, but David McKinney, Southern’s vice president of nuclear development, told the Georgia Public Service Commission at a hearing Thursday that he was “not ready to say today” if it will be extended.

“You may see that interim agreement extended,” said McKinney.

He said Southern and Georgia Power are still evaluating what to do, including whether to abandon the project, and how much it will cost to finish the Vogtle expansion.

The hearing was on Georgia Power’s progress on the Vogtle expansion in the last half of 2016, when it spent $222 million on the project.

An army of about 6,000 workers are building two new reactors at Vogtle, but the job is well over $3 billion over budget and more than three years behind schedule.

Georgia Power officials said the project slipped at least four months farther behind schedule in the second half of 2016, and has fallen farther behind this year.

Partly because of Westinghouse’s bankruptcy, the utility’s executives told the PSC they no longer expect to be able to finish the reactors by the end of 2020 — the latest deadline set last year under a settlement between the agency and Georgia Power.

The project is being bankrolled by more than $8 billion in federal loans and loan guarantees, as well as nearly $2 billion paid through “financing” surcharges that add about $100 a year to residential customers’ bills.

Critics used Thursday’s hearing to express their anger over Vogtle’s costly troubles. Several urged the PSC to pull the plug on the project, arguing that the units aren’t needed because electricity demand in Georgia hasn’t grown over the past decade.

“I am angry,” said Atlanta resident Barbara Antonoplos. She said it’s “absurd” that the PSC says it didn’t see Westinghouse’s bankruptcy coming.

In the recent settlement a few months before Westinghouse’s bankruptcy, she added, the PSC “approved as prudent every penny of the billions that have been spent” on Vogtle, and even more for future spending.

“No one now can deny that this is a very big mess,” said Robert Searfoss, of Atlanta. He said it’s also unfair that older customers have been paying for a project for years and may never get any benefit from it.

“I’m an elderly customer caught in the Vogtle vortex,” he said. “



Reader Comments ...


Next Up in Business

Amazon raises monthly Prime membership rate
Amazon raises monthly Prime membership rate

The monthly membership fee for Amazon Prime rose Friday from $10.99 to $12.99. Company officials said the annual membership will remain at $99 dollars. Monthly customers do not get access to Amazon Video, which costs $8.99 a month. The last Prime subscription hike came in 2014, when Amazon increased its yearly membership from $79 to $99. The e-commerce...
Top tips for selling your old stuff on eBay (and actually making cash)
Top tips for selling your old stuff on eBay (and actually making cash)

Too much clutter, too little money, too many gifts you didn't like... an eBay auction is one of the simplest solutions to all three issues. If your trash might be someone else's treasure, an eBay business is simple to start and accessible to just about anyone. "It has low start-up costs and it can be started out of your home," noted the ...
After mauling, Delta tightens emotional support animal restrictions
After mauling, Delta tightens emotional support animal restrictions

In the wake of a horrific mauling of a Delta passenger by another traveler’s emotional support dog last year, Delta is tightening restrictions on emotional support animals in flight. To travel with an emotional support animal, starting March 1 Delta Air Lines will require a “confirmation of animal training” form signed by the...
Metro Atlanta, Georgia officials to present united front to nab Amazon
Metro Atlanta, Georgia officials to present united front to nab Amazon

Georgia’s full-fledged competition for Amazon’s second headquarters has entered a new and unpredictable phase now that it’s on the tech giant’s short list. But the state’s hunt for another major headquarters three years ago could provide valuable clues into its strategy for winning the project. Georgia’s long...
Kempner: Amazon, thanks for sort of picking Atlanta, but …
Kempner: Amazon, thanks for sort of picking Atlanta, but …

Amazon, it’s not that we’re ungrateful for Atlanta being one of your Top 20 choices for your second headquarters and 50,000 delicious jobs. We’ll hold off celebrating or feeling like we’ve gotten some kind of affirmation until we figure out if you just like us a good bit or really love us. Yes, we do think we are all that...
More Stories