Vogtle nuke faces new vote as muni lawsuit puts construction at risk

7dec2074a824c355b09bf37e588ca45eby Robert Walton
9/14/18 UTILITY DIVE

Dive Brief:

  • Rising costs for the development of two new nuclear units at the Vogtle plant in Georgia have spawned dueling lawsuits between an owner of the project and a municipal utility that claims it never signed up for the perpetual cost increases — and if it did, it shouldn’t have been allowed to.
  • Jacksonville Electric Authority (JEA) has asked a Duval County, Fla., circuit court to find a 2008 power purchase agreement (PPA) to be unenforceable, claiming it violates the state’s constitution, laws and public policy, and the city’s elected leadership had not given its blessing to the deal.
  • Development of Units 3 and 4 was initially expected to cost $7.3 billion but over the years that price tag has ballooned to more than $27 billion. According to the Augusta Chronicle, JEA’s obligations over the 20-year life of its agreement could be more than $2 billion.

    Dive Insight:

    JEA is showing signs of buyer’s remorse, but given the nearly 400% cost increase it’s hard to blame the municipal utility.

    JEA is suing one of Vogtle’s owners, the Municipal Electric Authority of Georgia (MEAG), requesting a declaratory judgment that the PPA they agreed to cannot be enforced. The utility argues the Jacksonville City Council did not approve the deal; JEA’s board overstepped its authority in making the arrangement; and Florida law prohibits the contract.

    Read the whole article: Utility Dive

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