The Georgia Public Service Commission on December 11 mentioned it is going to determine December 21 whether or not to permit development of two new nuclear reactors on the Plant Vogtle website to maneuver ahead, or name for the challenge to be canceled.
Commissioners voted Monday to maneuver up the timetable for a call on the troubled nuclear challenge after noting that Georgia Power CEO Paul Bowers mentioned his firm would go by $150 million in tax financial savings to ratepayers, if the challenge is canceled by year-end. The transfer got here on the primary of 4 days of hearings in Atlanta, Georgia, to find out the following steps for the PSC and Georgia Power with regard to the oft-delayed development of two new AP1000 reactors on the nuclear plant close to Waynesboro, Georgia.
This week’s hearings had been anticipated to pave the way in which for a PSC determination on the challenge’s destiny, a call initially scheduled for February 2018. POWER journal has been amongst these reporting that pending adjustments to the federal company tax price construction into account by Congress might speed up that timetable.
PSC chairman Stan Wise on December 1 requested Georgia Power, the challenge’s lead utility, about how adjustments in company tax legislation might have an effect on the challenge. Bowers on December 6 responded change within the U.S. company tax price from 35% to 20% would offer financial impetus for the utility to decide by year-end, significantly if the choice is to desert the challenge.
Bowers, in his response letter to the PSC final week, mentioned: “If the choice had been to be made that it’s in the very best curiosity of shoppers to stop the development of Plant Vogtle Units three & four, making that willpower previous to December 31, 2017 would protect the Company’s means to make the most of the present larger federal tax price below what is thought in easy accounting phrases as an abandonment deduction.” Bowers within the letter mentioned an abandonment declaration previous to year-end would allow Georgia Power “to comprehend an roughly $150 million bigger tax profit below the present 35 p.c tax price. These advantages would offset challenge prices and be handed alongside to clients by the normal ratemaking course of.”
PSC employees on Monday heard from each supporters and opponents of the Vogtle challenge. Supporters have mentioned the two-unit growth at Vogtle is the nation’s greatest alternative to additional the following era of U.S. nuclear energy and generate carbon-free electrical energy. Opponents level to billions of in value overruns for the challenge, and declare Vogtle would proceed to lose cash as pure gasoline and renewable sources of vitality proceed to take a bigger share of the nation’s energy era.
Construction continues on the 2 new reactors at Vogtle. Global engineering administration firm Bechtel is main the work below the path of Southern Nuclear, a part of Southern Co., the mother or father of Georgia Power. If the challenge strikes ahead, Unit three at Vogtle is anticipated to return on-line in November 2021, with Unit four startup scheduled for November 2022. The oft-delayed challenge was first authorized in 2009 and initially scheduled for startup in 2016.
The unique lead contractor, Westinghouse, filed for chapter in March 2017, citing value overruns from each Vogtle and the same nuclear growth challenge on the V.C. Summer Plant in South Carolina. The Vogtle challenge is the one large-scale nuclear development underway within the U.S. after the Summer growth was canceled earlier this yr.
—Darrell Proctor is a POWER affiliate editor (@DarrellProctor1, @POWERmagazine)
The submit Georgia PSC Will Decide Vogtle’s Fate on December 21 appeared first on POWER Magazine.
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