Georgia Power adjusts schedule for Vogtle units 3 & 4

Rhea-AI Summary

Georgia Power has revised the schedule for its Vogtle 3 & 4 nuclear expansion project, now projecting Unit 3 in-service by Q3 2022 and Unit 4 by Q2 2023. This delay is due to ongoing construction challenges and the need for extensive safety testing. Unit 3 is 99% complete, with total project progress at 95%. A peak rate impact of approximately 10% on retail customers is expected, but protective measures may save customers about $1.3 billion. The project is vital for providing carbon-free energy and has created over 7,000 construction jobs.

Positive

• Unit 3 construction is 99% complete, with total project completion at 95%.
• Projected customer savings of approximately $1.3 billion due to rate protections.
• Once operational, the units are expected to power over 500,000 homes.

Negative

• Revised in-service dates for Units 3 and 4 indicate construction delays.
• Construction challenges may lead to increased costs and extended timelines.

ATLANTA, Oct. 21, 2021 /PRNewswire/ -- Georgia Power today announced a revised schedule for the Vogtle 3 & 4 nuclear expansion project. The company currently projects a Unit 3 in-service date in the third quarter of 2022 and a Unit 4 in-service date in the second quarter of 2023, representing a three-month shift for each unit. The change to the schedule is primarily due to the need for additional time to address continued construction challenges and to allow for the comprehensive testing necessary to ensure quality and safety standards are fully met.

Unit 3 fuel load could occur as early as the first quarter 2022, but a fuel load date as late as May 2022 should support a third quarter 2022 in-service date.

"As we've said from the beginning of this project, we are going to build these units the right way, without compromising safety and quality to achieve a schedule deadline," said Chris Womack, chairman, president and CEO of Georgia Power. "We have endured and overcome some extraordinary circumstances building the first new nuclear units in the U.S. in more than 30 years. Despite these challenges, progress at the site has been steady and evident."

The new Vogtle units are an essential part of Georgia Power's commitment to deliver safe, clean, reliable and affordable energy, and are expected to provide customers with a reliable, carbon-free energy source for the next 60 to 80 years.

Progress continues to be made towards Unit 3 fuel load following the successful completion of hot functional testing this summer. Unit 3 direct construction is 99% complete, with the total Vogtle 3 & 4 expansion project approximately 95% complete.

The overall projected peak rate impact to Georgia Power's retail customers is approximately 10%, with nearly 3% in rates today. The rate impacts include customer benefits that the company proactively pursued – including federal production tax credits and interest savings from the Department of Energy loan guarantees – as well as fuel savings associated with adding additional nuclear units to the generation mix. Protections put in place by the Georgia Public Service Commission (PSC) to reduce the Company's return on equity during construction are projected to save customers approximately $1.3 billion.

Once operating, the two new units at Plant Vogtle will be able to power more than 500,000 homes and businesses. A diverse fuel mix, including nuclear, is essential to maintaining a reliable and affordable energy infrastructure that attracts new investment, supports economic growth and creates jobs.

With more than 7,000 workers on site, and more than 800 permanent jobs available once the units begin operating, Vogtle 3 & 4 is currently the largest jobs-producing construction project in the state of Georgia. The project has also been an economic development driver for the region during construction.

About Georgia Power
Georgia Power is the largest electric subsidiary of Southern Company (NYSE: SO), America's premier energy company. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company's promise to 2.6 million customers in all but four of Georgia's 159 counties. Committed to delivering clean, safe, reliable and affordable energy at rates below the national average, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Georgia Power focuses on delivering world-class service to its customers every day and the company is recognized by J.D. Power as an industry leader in customer satisfaction. For more information, visit www.GeorgiaPower.com and connect with the company on Facebook (Facebook.com/GeorgiaPower), Twitter (Twitter.com/GeorgiaPower) and Instagram (Instagram.com/ga_power).

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the projected in-service dates for Plant Vogtle units 3 and 4 and expected job creation. Georgia Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Georgia Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Georgia Power's Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the potential effects of the continued COVID-19 pandemic; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects, including Plant Vogtle Units 3 and 4, which includes components based on new technology that only within the last few years began initial operation in the global nuclear industry at this scale, due to current and future challenges which include, but are not limited to, changes in labor costs, availability and productivity, challenges with management of contractors or vendors, subcontractor performance, adverse weather conditions, shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor, contractor or supplier delay, delays due to judicial or regulatory action, nonperformance under construction, operating, or other agreements, operational readiness, including specialized operator training and required site safety programs, engineering or design problems or any remediation related thereto, design and other licensing-based compliance matters, including, for nuclear units, inspections and the timely submittal by Southern Nuclear of the Inspections, Tests, Analyses, and Acceptance Criteria documentation for each unit and the related investigations, reviews and approvals by the U.S. Nuclear Regulatory Commission ("NRC") necessary to support NRC authorization to load fuel, challenges with start-up activities, including major equipment failure, or system integration, and/or operational performance, and challenges related to the COVID-19 pandemic; the ability to overcome or mitigate the current challenges at Plant Vogtle Units 3 and 4 that could further impact the cost and schedule for the project; legal proceedings and regulatory approvals and actions related to construction projects, such as Plant Vogtle Units 3 and 4, including Public Service Commission approvals and NRC actions; under certain specified circumstances, a decision by holders of more than 10% of the ownership interests of Plant Vogtle Units 3 and 4 not to proceed with construction and the ability of other Vogtle owners to tender a portion of their ownership interests to Georgia Power following certain construction cost increases; the ability to construct facilities in accordance with the requirements of permits and licenses (including satisfaction of NRC requirements), to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; the inherent risks involved in operating and constructing nuclear generating facilities; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the direct or indirect effect on Georgia Power's business resulting from cyber intrusion or physical attack and the threat of physical attacks; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest or other similar occurrences; and the direct or indirect effects on Georgia Power's business resulting from incidents affecting the U.S. electric grid or operation of generating or storage resources. Georgia Power expressly disclaims any obligation to update any forward–looking information.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/georgia-power-adjusts-schedule-for-vogtle-units-3--4-301406219.html

SOURCE Georgia Power

FAQ

What is the new schedule for Vogtle Units 3 and 4?

Unit 3 is now projected to be in-service by Q3 2022, and Unit 4 by Q2 2023.

How much of the Vogtle project is complete?

As of now, Unit 3 is 99% complete and the overall project is approximately 95% complete.

What is the expected impact on Georgia Power customers?

Customers face a projected peak rate impact of about 10%, with nearly 3% increase currently.

How many jobs are created by the Vogtle expansion project?

The project has over 7,000 workers on site, with more than 800 permanent jobs available once operational.

What long-term benefits are expected from the Vogtle units?

The new units will provide a reliable, carbon-free energy source for the next 60 to 80 years.