The new units will be located at Plant Vogtle near Waynesboro, Georgia, where the company already owns and operates two nuclear units. The conditional commitment is for loan guarantees that will apply to future borrowings related to the construction of Vogtle units 3 and 4.
Total guaranteed borrowings will not exceed 70% of the company’s eligible projected costs, or approximately $3.4bn, and are expected to be funded by the Federal Financing Bank. Any guaranteed borrowings will be full recourse to Georgia Power and secured by a first priority lien on the company’s 45.7% ownership interest in the two new units.
The company said that the loan guarantees will help to accelerate the construction of new nuclear plants and other clean energy sources while adding jobs and aiding the economy. The additions of units 3 and 4 are expected to produce approximately 3,500 jobs during construction and an additional 800 permanent jobs once the units begin operation.
Georgia Power has 90 days to accept the conditional commitment, including obtaining any necessary regulatory approvals. The company will work with the DOE to finalize the loan guarantees.
Final approval and issuance of the loan guarantees are subject to receipt of the Combined Operating License (COL) from the US Nuclear Regulatory Commission (NRC), completion of final agreements, the receipt of any other required regulatory approvals and satisfaction of other conditions.
The company received an early site permit from the NRC for the two additional units in 2009, and preliminary site work has begun.
Along with Georgia Power’s portion of the two 1,100MW reactors, the remaining ownership is split among Oglethorpe Power, the Municipal Electric Authority of Georgia (MEAG Power) and Dalton Utilities. Total cost of the new units is currently projected to be approximately $14bn.
Units 3 and 4 are expected to begin commercial operation in 2016 and 2017, respectively. Southern Nuclear, a subsidiary of Southern Company, will oversee the construction and operate the two new units for Georgia Power and the other owners.
David Ratcliffe, CEO of Southern Company, said: “We are honored by the administration’s confidence in our ability to build the nation’s first new nuclear power plant in more than three decades. It’s an important endorsement in the role nuclear power must play in diversifying our nation’s energy mix and helping to curb greenhouse gas emissions.”
