Utility Georgia Power announced Tuesday it has reached a new agreement with Toshiba, parent company of bankrupt, former primary Vogtle contractor Westinghouse, to receive all remaining scheduled payments from Toshiba totaling $3.2 billion, by Dec. 15.
Georgia Power’s proportionate share of the payments is roughly $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 – structure which was put in place to protect Georgia electric customers as part of the original contract.
Vogtle includes construction of two Westinghouse AP 1000 nuclear reactors. The project is badly behind schedule and billions of dollars over original cost estimates.
The agreement will only become binding upon satisfaction of certain conditions including, but not limited to, approval of Toshiba’s board and receipt of U.S. Department of Energy (DOE) approval.
“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.
In addition to securing all of the funds available from Toshiba, the company recently announced a conditional commitment of roughly $1.67 billion in additional loan guarantees for the project from the 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 roughly 10%, with 5% related to the project already in rates, below original projections of approximately 12%.