Tag Archives: Westinghouse

Plant Vogtle hits new delays; costs surge near $30B

Vogtle Georgia Power
The Plant Vogtle nuclear expansion project in Georgia is pictured last month. Georgia Power

By Kristi E. Swartz
02/18/2022    Southern Co. yesterday announced another delay for its long-troubled nuclear construction project in Georgia, edging its costs closer to the $30 billion mark.

The setback could now push the startup date for Plant Vogtle’s first reactor until early 2023 and move the date for the second one to later that year. The costs for Plant Vogtle’s two reactors have now risen to the point that Southern should absorb every dollar instead of sharing that burden with the other developers — and passing it on to customers.

Plant Vogtle’s latest move highlights the nuclear industry’s chief troubles with building large, baseload reactors: safety and cost. To be clear, Southern executives have blamed this new hiccup on paperwork, saying that workers were gathering it to send to federal safety regulators and noticed critical inspection records were missing or incomplete.

The pile of missing or incomplete documents added up to a delay of three to six months, Southern said. That additional time is costing $920 million.

“We’re a little frustrated with the latest developments,” Southern Co. CEO Tom Fanning said yesterday in an interview. “[The first unit] is on the doorstep of loading fuel and going into service.”

Fanning talked of “great momentum” at the construction site since November. He said the company was looking forward to receiving the Nuclear Regulatory Commission’s permission to load fuel rods into the reactor, the last major step before it can start producing electricity.

But workers realized “tens of thousands” of critical documents were missing, leading to a three-month backlog, Fanning said. Officials have cut that time down by 30 percent, he added.

“We’re fixing that part of the ‘paper’ process,” he told E&E News.

Read the whole article: E&E News

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Vogtle’s fate no clearer after tense negotiations

Unknownby Kristi Swartz
9/26/18 The future of the nation’s lone nuclear construction project remained unclear last night as its utility partners continued to negotiate over how to handle its rising costs.

Expenses at Southern Co.’s Plant Vogtle expansion project have jumped $2.3 billion in just one year. Vogtle’s budget is roughly double what it was a decade ago, but the reactors were at a crossroads Monday when one of the business partners said it would walk away unless the construction costs were capped.

That talks among the developers — Southern’s Georgia Power Co., Oglethorpe Power Corp., the Municipal Electric Authority of Georgia (MEAG) and Dalton Utilities Inc. — have been extended until 5 p.m. today is a sign that they are trying to keep the reactors going. That is a far cry from yesterday, when Oglethorpe and its utility partners aired their disagreements — and anger — in lengthy public statements.

Read the whole article: E&E News

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Contract dispute threatens $27bn Vogtle nuclear project

Vogtleconstructionby Ed Crooks
9/13/18 NEW YORK — A legal battle has flared up over the only new nuclear power plant under construction in the US, raising questions about the $27bn project’s future.

Companies involved in the plan to build two reactors in Georgia have sued each other over a contract to buy electricity from the plant, as communities argue over who should bear the rising cost of the project. The outcome of the dispute will have implications for the nuclear industry in the US and internationally.

The two Westinghouse AP1000 reactors being built at the Vogtle power plant in Georgia have been hit by delays and cost overruns, but the companies leading the project are still pressing ahead with construction.

However, the city of Jacksonville in Florida and its electric utility JEA, which had agreed to buy power from the plant for 20 years, are attempting to escape from that contract. In a filing at a Florida court on Wednesday, the city argued that the 2008 agreement to buy power from the plant was in breach of state law and therefore unenforceable.

In their filing, Jacksonville and JEA said the contract “purports to saddle JEA and its ratepayers with an unlimited obligation to fund the exorbitant and ever-ballooning cost of constructing units of a nuclear power plant that JEA does not own.”

Read the whole article: Financial Times

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As Georgia regulators ponder Vogtle’s future, more revelations emerge about its doomed twin in South Carolina

Westinghouse-AP-1000by Tom Baxter
11/13/17 ATLANTA: From a design point of view, the nuclear projects at Plant Vogtle and the V.C. Summer site in South Carolina were identical. They were to be the first in a new generation of U.S. nuclear reactors, the Westinghouse AP1000s, cheaper, easier to build and safer than their predecessors.

After years of costly delays, the fate of the two projects diverged last summer, when the South Carolina utilities funding the Summer project pulled the plug on it, just days after the Georgia Public Service gave the go-ahead for continuing construction at Vogtle, despite the bankruptcy of Westinghouse.

The impact of the Westinghouse debacle has been felt more sharply in South Carolina, where a substantially smaller population of ratepayers is shouldering the enormous costs. One result of this has been a very productive competition between Columbia’s The State and Charleston’s The Post and Courier, both of which have been aggressive in reporting on the regulatory failures that accompanied the engineering blunders on the road to ruin for the Summer project.

Last week, as the Georgia Public Service Commission was holding four days of hearings on the future of the Vogtle project, portable devices were buzzing with the fruits of that effort.

Read the whole article: Saporta Report

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Time to decide if you pay more for Georgia’s nuclear debacle

by Matt KempnerVogtle_ajc_8-3-17
11/3/17 ATLANTA: Don’t read beyond this sentence if you don’t pay a power bill in Georgia and never will.

Otherwise, get your wallet out.

There’s a bit of show biz about to start Monday in hearings with elected state regulators. When it’s over, it’s likely to end up costing you and your Georgia descendents for decades to come.

That’s because the only giant, deeply delayed, steeply over-budget nuclear power construction project still underway in the U.S. may well get another wink and pat on the back from Georgia regulators.

So far, Georgia politicians have failed to enact significant consumer protections that would limit a government-enforced monopoly (Georgia Power) from sidestepping the vast majority of risk while raking in extra (extra!) profits on the overruns for the company’s Plant Vogtle expansion.

Elected members of the Georgia Public Service Commission start the first of four days of hearings Monday. It’s Round One in what on paper could be a momentous decision after years of complex construction plagued by unfinished designs, incomplete scheduling, flawed parts and workmanship, insufficient oversight early on and too much worker downtime.

The PSC accepted the setbacks, missteps and busted budget in the past. But now PSC members are faced with their first go/no-go vote since originally approving the project in 2009. That’s because the bankruptcy of Westinghouse, the project’s main contractor, throws significantly more risk and cost into the mix.

Read the whole article: Atlanta Journal-Constitution

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Georgia Power vs. the law of holes

Plant-Vogtle-construction-2014by Lyle Harris
10/16/17 ATLANTA Georgia Power is likely to get another shot-in-the-arm after announcing plans to complete construction on those ill-fated nuclear reactors at Plant Vogtle near Waynesboro.

A more appropriate response to this epic boondoggle, of course, would be a swift kick in the pants. But don’t count on it.

The Georgia Public Service Commission (PSC) has scheduled hearings on November 6 to discuss the troubled project, Along with the Southern Company (Georgia Power’s corporate parent) and the smaller utilities that are partners on the Plant Vogtle expansion, there’s little reason to worry about some silly old hearings. While the PSC is ostensibly charged with balancing the interests of the utility with those of its customers, the scales are reliably tipped in Georgia Power’s favor.

The planned reactors at Plant Vogtle were supposed to be up and running by now but they’re only about one-third complete. A series of major snafus and setbacks (including the bankruptcy of Westinghouse Electric which designed and was building the reactors) has increased chances that Georgia households will be picking up more of the tab.

Read the whole article: Saporta Report

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Vogtle completion ‘uneconomic,’ Ga. PSC consultants say

moneyreactors-300x300by  Colby Bermel
6/13/17: Consultants to the Georgia Public Service Commission said June 8 that Westinghouse Electric Co. LLC’s bankruptcy has “invalidated” Georgia Power Co.’s cost calculations at its Alvin W. Vogtle Nuclear Plant and it would be “uneconomic” to complete the plant’s expansion.

The consultants also said that if Georgia Power were to continue construction, the Southern Co. subsidiary will spend $3 billion more on Vogtle than what it predicted in a recent report and the plant’s new units will go online three years later than the company anticipates.

Philip Hayet and Lane Kollen, both vice presidents and principals at J. Kennedy and Associates in Roswell, Ga., submitted written testimony to the commission on behalf of its Public Interest Advocacy Staff. The state agency is conducting a review of Georgia Power’s $222 million in Vogtle construction costs during the second half of 2016 for the Vogtle Construction Monitoring Report, or VCM.

Read the whole article: S&P Global Market Intelligence

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PSC Commissioner Moves for Georgia Power to Stop Collecting Nuclear Tax

bubba-2by Gloria Tatum
6/11/17 (APN) ATLANTA — Georgia Public Service Commissioner Lauren “Bubba” McDonald (District 4) filed a motion to give Georgia Power ratepayers a break by asking the company to suspend collecting the nuclear construction tax, or CWIP.

But it had as much chance as a snowball in hell of being honored by the PSC or Georgia Power.  The Commission voted to hold the motion and refer it to the Georgia Attorney General for an opinion, in a four to one vote on June 06, 2017.

“I move that the Commission request that the Company voluntarily agree that as of July 1, 2017, it will stop collecting any financing charges under the Nuclear Construction Cost Recovery (NCCR) tariff,” McDonald’s motion read.

“Effective July 1, 2017, the Company will utilize Allowance for Funds Used During Construction (AFUDC) accounting treatment on the Construction Work in Progress (CWIP) balance of all Unit 3 and 4 capital costs,” the motion stated.

Read the whole article: Atlanta Progressive News

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Southern’s path to ‘first’ new reactor filled with pitfalls

image_asset_18775by Kristi Swartz
6/8/17: Southern Co.’s nuclear expansion project in Georgia was behind schedule even before it got started.

Contractor Westinghouse Electric Co. LLC and the Nuclear Regulatory Commission grappled with design changes for the new AP1000 technology, delaying the agency’s issuance of the major construction license by four months in 2012.

They’ve never been able to catch up.

The delay was small at the time because Southern’s Georgia Power unit and the contractors said they could make up the time in some way. What’s more, the schedule slip meant little compared with the broader story: Georgia Power was restarting the nuclear industry after 30 years with Plant Vogtle.

The twin reactors would start producing electricity in 2016 and 2017.

Read the whole article: E&E News

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GEORGIA: Sinking into the Vogtle Vortex

The expansion of a Georgia nuclear power plant that fired up dreams for a carbon-free nuclear renaissance in the U.S. has turned into a quagmire of setbacks, financial woes, uncertainty and frustration.
Protest_smby Pam Wright
5/23/17: Cornelia Stumpf has had enough.

The Savannah resident joins more than 2 million other Georgia Power customers who collectively pay a reported $23 million a month for the construction of two new and highly controversial nuclear reactors that may never produce a single kilowatt of energy.

The new reactors at the Alvin W. Vogtle Electric Generating Plant, 30 minutes south of Augusta, were the first approved in the U.S. in 30 years, and they were expected to revive the nation’s nuclear power industry, ushering in an era of carbon-free energy to help control climate change. But the expansion at Plant Vogtle has become an expensive boondoggle for the company and its customers.

“What is upsetting to me is, in the end, I’m just one person and it’s added up to $700 in the six years since they began charging it,” says Stumpf, a conscientious consumer of energy who is speaking from her office on a 90-degree afternoon in May with the air conditioner off.

Georgia Power, a subsidiary of the Southern Company, implemented the 7 percent surcharge in 2011 after lawmakers gave the utility permission to charge customers for the construction of the project. The charge appears on consumer’s bill as “Nuclear Construction Cost Recovery.” So far Georgia Power has reportedly collected nearly $2 billion from the surcharge.

Read the whole article: The Weather Channel

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