U.S. offers Vogtle nuclear plant $3.7 billion in loan guarantees

Lester Mason
September 30, 2017

Energy Secretary Rick Perry said it was important for the US government to support the Alvin W. Vogtle Electric Generating Plant, which would be the first new nuclear reactors built in the country in more than three decades.

One month after Georgia Power filed a recommendation August 31 that construction of the Vogtle 3 and 4 nuclear power expansion project near Augusta, Ga., continue, and with Bechtel selected to complete the job's construction, the U.S. Department of Energy announced conditional commitments for up to $3.7 billion in loan guarantees to Vogtle's owners.

"Advanced nuclear energy projects like Vogtle are the kind of important energy infrastructure projects that support a reliable and resilient grid, promote economic growth, and strengthen our energy and national security", Energy Secretary Rick Perry said.

The project is at least three years behind schedule and $3 billion over budget, and Westinghouse Electric Corp., the company overseeing the construction, pulled out this year after filing for bankruptcy.

The projects, using AP1000 reactors, were designed and being built by Pittsburgh-based Westinghouse.


"From the outset, Georgia Power and the project co-owners have worked to minimize the impact of the project on our customers' bills and these additional loan guarantees will help us continue to reduce our financing costs", said Georgia Power Chairman, President and Chief Executive Officer Paul Bowers.

The conditional loan guarantees were in the amounts of $1.67 billion to Georgia Power Company, a subsidiary of Southern Co., $1.6 billion to Oglethorpe Power Corp. and $415 million to three subsidiaries of the Municipal Electric Authority of Georgia.

The Vogtle project involves adding two new reactors to an existing plant, which already contains two older reactors.

It is the only remaining nuclear plant under construction in the USA, after Scana Corp.in July pulled the plug on a similar project using Westinghouse reactors in SC.

The federal government is showing support for the continuation of the construction of two reactors at a Georgia nuclear power plant. If the new Vogtle loan guarantees are approved, they would be the first issued under the $12.5 billion Advanced Nuclear Energy Projects Solicitation issued in December 2014.

Other reports by Iphone Fresh

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