Commission Verifies Expenses for Georgia Power’s 18th Nuclear Plant Vogtle Construction Monitoring Report

Staff Report From Georgia CEO

Wednesday, August 22nd, 2018

The Georgia Public Service Commission unanimously verified and approved $448 million in expenditures on the Georgia Power Plant Vogtle Construction Project for the reporting period of July 1, 2017 through December 31, 2017. This decision is not a ruling on whether the expenditures are prudent but only acknowledges that the Company has spent the funds on the project. This decision closes out the 18th Semi-annual Vogtle Construction Monitoring Report in Docket 29849.
 
As part of this decision, the Commission accepted both the Public Interest Advocacy Staff and Advisory Staff recommendations that Georgia Power file a more detailed discussion of project risks in their future VCM filings. The complete staff recommendation is: “In addition, Staff recommends that the Company include in its future semi-annual VCM filings a more detailed discussion of project risks in their filings including update analysis of contingency.  Quantification of each risk, where reasonably estimated, should be presented.  Variance(s) to plan, both cost and schedule, should also be quantified in dollars and days, respectively, and fully explained.”
 
“By passing these recommendations, we are requiring more transparency and more detailed information from the Company in future proceedings,” said Commissioner Doug Everett (R-Albany).
 
The Company filed its 18th Vogtle Construction Monitoring Report on February 28, 2018. The Company filed testimony on April 28, 2018. The Commission held two hearings in this docket: on May 2, 2018 on the Company’s direct testimony and on June 27, 2018 on Commission staff and interested parties testimony.
 
Plant Vogtle is a nuclear power electric generating plant near Waynesboro, Georgia. When fully operational, Units Three and Four now under construction will produce 2,200 Megawatts of electricity, enough to power about 500,000 homes. Plant Vogtle Units One and Two have been in commercial operation since 1987 and 1989 respectively.
 
The Commission certified Georgia Power’s share of the construction cost of Plant Vogtle Units Three and Four on March 17, 2009 at $6.114 billion. Georgia Power owns 45.7 per cent of Plant Vogtle with its partners, Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia and the City of Dalton Utilities, who own the remaining 54.3 per cent.
 
In other action, the Commission approved a pilot solar project that would use Georgia Department of Transportation right of way to finalize a one megawatt project at Exit 14 along Interstate 85 at the U.S. Highway 27 interchange. This pilot is a partnership with GDOT, The Ray and Georgia Power that would provide general benefits to the state and the consumers of Georgia Power.  Georgia Power would lease the GDOT right of way for 35 years but the pilot must be completed before the end of March 2019. This pilot project is intended to demonstrate the feasibility of a solar energy facility in a highway right of way as a viable renewable energy solution that can complement an existing transportation system. Electricity produced by the project will serve all retail customers of Georgia Power.
 
“The portion of interstate 85 in West Georgia known as ‘The Ray’ is a living laboratory for many agencies in our state to explore emerging technology,” said Commission Vice-chair Tim Echols (R-Jefferson). “The solar and pollinator project we approved today may be something that the department of transportation duplicates all over Georgia.”