New reactors on verge of final OK [View all]

[n2doc]

By Kristi E. Swartz

The Atlanta Journal-Constitution

Federal regulators are expected to sign off in the next few weeks on the United States’ first new nuclear power reactors in three decades, a $14 billion project near Augusta.

But the move by Atlanta-based Southern Co. and its Georgia Power subsidiary to build two new reactors at Plant Vogtle, in Burke County, may not have happened without financial cushions provided by consumers and taxpayers.

One cushion comes from the federal government, which is promoting U.S. energy independence as well as cleaner options. Taxpayers are guaranteeing more than $8 billion in loans for the Vogtle project.

The other cushion comes from the 2.4 million Georgia Power customers. Unlike the nuclear construction boom in the 1970s when reactors were built and then consumers paid for them, Georgia Power customers are already footing the bill for the Vogtle project — even though it hasn’t received final approval yet.

Both developments transfer financial risk away from Southern Co. and its shareholders and toward consumers and taxpayers. If there are cost overruns — as there were when Vogtle was originally built — customers will largely be on the hook.

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http://www.ajc.com/news/new-reactors-on-verge-1321239.html