What will it cost to build Southern Co.’s new nuclear reactors at Plant Vogtle?

[kristopher]

What will it cost to build Southern Co.’s new nuclear reactors at Plant Vogtle?
January 11th, 2016 › Nuclear › Sara Barczak ›

So, what is the current cost estimate for building two new Toshiba-Westinghouse AP1000 nuclear reactors at Southern Company’s Plant Vogtle near Waynesboro, Georgia along the Savannah River? It seems like it should be a simple question but it clearly is not. And the answer depends on when you ask, who you ask, what your question is exactly asking, how you ask the question and how much patience you have to wait for an actual answer. ...

Here are the highlights (or “lowlights”) to save you time:

- The project is at least 39-months delayed; though more than five years in, only 26 percent of construction is complete.
- With more delays come more cost increases, in excess of $2 million per day for Georgia Power’s share of the project (they are 45.7 percent owners).
-Georgia Power’s estimated cost is now over $9.5 billion, more than $3 billion above the certified cost of $6.113 billion.
- All project benefits have been eliminated by the detriments (e.g. increased financing costs, replacement fuel costs, etc.).
- Approximately $21 billion was mentioned as the current total cost estimate for the entire Vogtle project, a staggering increase since the $14.1 billion estimate in 2009 (this figure does not include costs associated with even further delays).

But as I said earlier, when it comes to the Vogtle monitoring docket, getting the “answer” depends on who you ask and when and how. For example, Southern’s 13th VCM report and their witnesses who testified in early November stated that the current estimated project cost was just over $7.4 billion. It wasn’t until expert witnesses on behalf of the PSC’s Public Interest Advocacy Staff filed testimony later that month that we learned the cost is $8.409 billion, a 38 percent increase since certification, which includes the lost fuel savings and the $350 million cost increase for Georgia Power’s share of the project given the settlement between the utility owners and lead contractor Westinghouse that was announced in late October and recently finalized.

Expert witness for Public Interest Advocacy Staff testifies

And then it took our attorney, former PSC Commissioner Robert “Bobby” Baker, to ask the important questions at the December hearing to tease out important details. Such as the fact that the 46 percent tax true up rate on the approximately $2.4 billion in financing costs associated with the 39-month delay should be included, bringing Georgia Power’s estimated cost to over $9.5 billion, more than $3 billion above the certified cost from 2009. And given Georgia Power is just one partner in the project, the total project cost estimate is now around $21 billion. You can watch the full cross examination here or a few short, but revealing excerpts here:

- confirmation of the 46 percent tax gross up not previously included
- confirmation of an additional $1.264 billion in financing costs due to the 39-month delay
- estimated cost of Georgia Power’s share of Vogtle now over $9.5 billion
- estimated total Vogtle price tag of approximately $21 billion

Conveniently for the Company and unfortunately for utility customers...

- See more at: http://blog.cleanenergy.org/2016/01/11/how-much-does-it-cost-to-build-southern-co-s-new-nuclear-reactors-at-plant-vogtle/

[Blus4u]

1. I lived in GA for 35 years and

the Georgia Public Utilities Commission allowed Georgia Power to start billing customers for those plants years ago. I don't think they'll ever be built. Every month there was a tack on charge.


Peace

[bananas]

2. I thought you were asking about bribes.

Let's face it, a boondoggle like this doesn't happen without people being paid off.

[NeoGreen]

3. k&r n/t

[4dsc]

4. $35 billion is my guestimate..

This is going to be a disaster for Georgia.

[kristopher]

5. Well, given that the present all-in number fm OP is $21 billion

...$35B is, I suppose, within the range of what is possible. The problem is that with the way CWIP funding works by saddling ratepayers with the bill for even failed projects, there is no reliable way to cap the costs of nuclear plants.