nuclear-news

Vogtle Nuclear Reactor’s cost overrun $2 billion

Rushing nuclear power reactors is not prudent and stockholders and/or the vendors, not ratepayers, should bear the burden of such costs.

Groups: Nearly $1 Billion Vogtle Nuclear Reactor Cost Overrun Echoes Earlier Warning About “Boondoggle” Project By Southern Alliance for Clean Energy The Sacramento Bee, , May. 11, 2012   WASHINGTON,   — We Told You So:  Major Cost Overruns  Latest Sign of Vogtle Woes, Including Construction Errors and Raft of Amendments to Federal License   – Even though the Vogtle reactor project got its federal license just three months ago, the controversial nuclear reactors are already in trouble. The latest problem: A cost overrun of nearly $1 billion in 2011 dollars, according to groups that warned in February that the Vogtle expansion effort is a boondoggle that could hurt ratepayers and (depending on the status of a pending Solyndra-style federal loan guarantee) U.S. taxpayers.

Southern Co.  publicly acknowledged its share of the cost overrun in a filing this week with theU.S. Securities and Exchange Commission  (SEC ) athttp://investor.southerncompany.com/secfiling.cfm?filingID=92122-12-76&CIK=092122 . The new admission about problems at Vogtle follow recent reports about grading issues under the reactor’s foundation, improperly installed rebar that has slowed the project, and dozens of amendments requested to the federal license for the two new Vogtle reactors.

Given all of the partners involved in Vogtle project, the cost overrun would break down as follows: Georgia Power  ($400 million); Oglethorpe ($263 million); MEAG Power  ($199 million); and the City of Dalton ($14 million).  The $875 million in 2008 dollars would be worth $913 million in 2011 dollars.

Southern Co. ‘s SEC  filing warns that more cost overruns could be in the works. In its SEC  filing,Southern Co.  notes on page 139:  “Additional claims by the Consortium and [Georgia Power] (on behalf of the owners) are expected to arise throughout the construction of Vogtle 3 and 4.”  However, no details are provided on how far losses could mount over and above the current nearly $1 billion cost overrun total.

On February 15, 2012, nine groups — Friends of the Earth, Southern Alliance for Clean Energy, Blue Ridge Environmental Defense League, Center for a Sustainable Coast, Citizens Allied for Safe Energy, Georgia Women’s Action for New Directions, NC WARN, Nuclear Information and Resource Service, and Nuclear Watch South  — held a news conference to warn that Southern Company  is deliberately keeping ratepayers and U.S. taxpayers in the dark by covering up the details of 12 sizeable construction “change order” requests that are expected to add major delays and cost overruns to the controversial reactor project. ……. See   http://www.cleanenergy.org/index.php?/Press-Update.html?form_id=8&item_id=278

May 13, 2012 - Posted by Christina Macpherson | business and costs, USA