nuclear-news

Worrying questions on the real costs of Georgia’s Vogtle nuclear power plant

State monitor warns on Ga. nuclear plant costs, seattle pi By RAY HENRY, Associated Press, December 7, 2014 TLANTA (AP) — Public watchdogs are giving Southern Co. a between-the-lines warning that building a multibillion-dollar nuclear plant in Georgia without a detailed construction schedule could trigger financial penalties.

That warning came in a report filed by a nuclear engineer and an analyst who work for state regulators and monitor the construction of two new reactors at Plant Vogtle in eastern Georgia.

The Public Service Commission has warned for at least two years that Southern Co. subsidiary Georgia Power is relying on an outdated project schedule that contains almost no detail after December 2015, even though construction will continue for several more years.

Nuclear engineer William Jacobs Jr. and financial analyst Steven Roetger said building a complex, first-of-its-kind project without a schedule was unreasonable. “In fact it runs counter to any prudent project management, nuclear or otherwise,” goes against the project’s construction agreement and an industry group’s own recommendations for construction, Jacobs and Roetger wrote in a semi-annual report.

That keyword — “prudent” — was meant to catch the ears of Southern Co. executives.

By law, the Public Service Commission can prevent Georgia Power, a regulated monopoly, from billing its customers for any construction costs the commission decides are the result of “imprudence.”

The state’s elected utility regulators have agreed to delay any final decisions on construction costs until after the first reactor is finished, likely in late 2017 at the earliest. However, the latest filing shows the commission’s staffers are laying the legal groundwork that could be used in future arguments to prevent customers from paying some of Georgia Power’s costs……….

Georgia Power’s budget estimate does not reflect the potential costs of resolving a roughly $1 billion lawsuit between the plant’s builders and its owners over previous delays and design changes. While Georgia Power has denied any responsibility for those extra costs, company leaders have said they would consider a settlement if it made financial sense.

Follow Ray Henry on Twitter: http://twitter.com/rhenryAP. http://www.seattlepi.com/business/energy/article/State-monitor-warns-on-Ga-nuclear-plant-costs-5941198.php

December 8, 2014 - Posted by Christina Macpherson | business and costs, USA