DOE approves Toshiba paying Georgia Power $3.2B for Vogtle

The U.S. Department of Energy (DOE) last week issued final approval for Georgia Power’s agreement with Georgia Power and partners to receive all remaining scheduled payments from Toshiba concerning the Vogtle nuclear reactor project in a lump sum of roughly $3.2 billion, by Dec. 15.

Toshiba’s payment is in lieu of said payments from its subsidiary and former project primary contractor, Westinghouse Electric, which declared Chapter 11 bankruptcy on March 29.

Georgia Power’s proportionate share of the payments is roughly $1.47 billion. Some $455 million in total scheduled payments from Toshiba under the parent guarantee for the Vogtle project, already has been paid to the project’s partners, Kallanish Energy learns.

“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 Dec. 5.

Georgia Power and its parent, Southern Co., have recommended to the Georgia Public Service Commission the Vogtle project be continued, despite being billions of dollars over budget and years behind schedule.

However, just last week, the Commission staff released a recommendation basically saying if the project’s various agreements aren’t modified, said staff recommends the project be shut-down – much like a very similar project in South Carolina, the Summer project, was shuttered by its backers in July.

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