Hearings on the way forward for the Vogtle nuclear enlargement mission are underway in Atlanta, Georgia, and occasions of the previous few days may affect how shortly the Georgia Public Service Commission (PSC) and Georgia Power attain a call on whether or not development of two new nuclear reactors continues or is halted.
This week’s hearings, that are scheduled to conclude on December 14, are anticipated to pave the way in which for a PSC resolution on the mission’s destiny in February 2018, however pending modifications to the federal company tax charge construction into account by Congress could speed up that timetable.
PSC chairman Stan Wise on December 1 requested Georgia Power, the mission’s lead utility, about how modifications in company tax legislation may have an effect on the mission. Georgia Power CEO Paul Bowers on December 6 responded change within the U.S. company tax charge from 35% to 20% would supply financial impetus for the utility to decide by year-end, notably if the choice is to desert the mission.
Bowers, in his response letter to the PSC, mentioned: “If the choice have been to be made that it’s in the perfect curiosity of consumers to stop the development of Plant Vogtle Units three & four, making that dedication previous to December 31, 2017 would protect the Company’s capacity to make the most of the present increased federal tax charge beneath 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 beneath the present 35 p.c tax charge. These advantages would offset mission prices and be handed alongside to prospects by way of the standard ratemaking course of.”
Work continues on the 2 AP1000 reactors beneath development on the Vogtle website close to Waynesboro, Georgia. Global engineering administration firm Bechtel is main work beneath the course of Southern Nuclear, a part of Southern Co., the dad or mum of Georgia Power. Under the present development schedule, Unit three at Vogtle is predicted to come back on-line in November 2021, with Unit four startup scheduled for November 2022. The oft-delayed mission was first accepted in 2009 and initially scheduled for startup in 2016.
The authentic lead contractor, Westinghouse, filed for chapter in March 2017, citing price overruns from each Vogtle and an identical nuclear enlargement mission on the V.C. Summer Plant in South Carolina. The Vogtle mission is the one large-scale nuclear development underway within the U.S. after the Summer enlargement was canceled earlier this 12 months.
This week’s hearings concern Georgia Power’s newest Vogtle Construction Monitoring (VCM) report on the enlargement mission. During hearings in November, the mission house owners—Georgia Power, MEAG Power, Dalton Utilities, and Oglethorpe Power—all reiterated their suggestion to maneuver ahead with the mission, which they introduced of their 17th VCM submitting on August 31, 2017.
PSC employees previous to this week’s hearings requested Georgia Power to think about the company’s suggestions, which embody transferring ahead with the mission if the PSC agrees with the situations in Georgia Power’s submitting for continued development. The PSC’s different suggestion is to cancel the mission if the company doesn’t conform to approve the situations.
The PSC’s Public Interest Advocacy Staff filed a doc with the state on December 1 outlining these suggestions, saying, “Rather than approving the Company’s [Georgia Power’s] request, Staff recommends the Project go ahead provided that the Commission modifies the Company’s proposed situations to: 1) be sure that completion is financial in comparison with cancellation, 2) present an acceptable allocation of dangers and prices between the Company and its prospects, and three) decide now that the prices recognized as unreasonable by Staff be borne by the Company and its shareholders, or as a minimum be sure that unreasonable prices are usually not prematurely accepted with out an in-depth evaluate of the prudence and reasonableness of precise prices after they’re…
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