2017-12-13 / Front Page

Vogtle will impact cusomers

(Publisher’s note: News pertaining to the construction of Plant Vogtle Units 3 & 4 is important to all electrical customers in Southwest Georgia. Each of the co-owners of the project, and their customers, along with Georgia Power’s shareholders have a vested financial interest in the project. The Public Service Commission will decide in February if the troubled project can proceed.)

MEAG Power announces an agreement with Toshiba to receive all remaining parent guarantee payments by Dec. 15.

MEAG Power announced last week that an agreement has been reached with Toshiba, the parent company of Vogtle 3 & 4 former primary contractor, Westinghouse, to receive all remaining scheduled payments from Toshiba in the amount of $3.2 billion by Dec. 15, 2017.

MEAG’s share of the $3.2 billion final payment is approximately $732 million, with the remainder going to the other Vogtle co-owners — Georgia Power, Oglethorpe Power and Dalton Utilities.

To date, the Vogtle co-owners have received $455 million in total scheduled payments from Toshiba under the parent guarantee for the Vogtle 3 & 4 project and this final payment will result in total parent guarantee payments to the co-owners of $3.68 billion. The agreement will become binding upon satisfaction of certain conditions, including but not limited to, approval of Toshiba’s board of directors and approval of the U.S. Department of Energy.

“The receipt of the remaining parent guarantee payments by Dec. 15 is an important and favorable development in mitigating project risk,” stated Jim Fuller, MEAG Power’s President and CEO.“Obtaining the value of these payment commitments will mitments will lead to lower costs for the reliable, emissions-free output from the new Vogtle Units.”

The Plant Vogtle Units 3 & 4 project consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Georgia of which MEAG’s share is 22.7%.

Additionally, through power purchase agreements with JEA and PowerSouth Energy Cooperative, MEAG Power will sell approximately 41.2% and 24.9%, respectively, of its share of the output in the nuclear expansion project for the initial 20 years of operation of each unit.

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