Congress approves production tax credit extension that will aid Vogtle nuclear expansion
The Georgia Power Vogtle nuclear expansion effort has gained new momentum following approval of legislation that will extend the deadline for receiving advanced nuclear production tax credits.
Georgia Power itself has praised the move, saying it will reduce further risk for continuing construction on two units at the plant and grant around $1 billion in benefits for their customers. In essence, the law reduces the risk for continuing construction on new nuclear units. Federal support is critical for such efforts, through the Energy Policy Act of 2005, which created a production credit for advanced nuclear power facilities. Vogtle itself stands to qualify for an income credit of 1.8 cents per kWH of electrical energy produced and sold once online.
“We are grateful to Senator Isakson for his leadership on this issue, and to the entire Georgia delegation for recognizing the importance of new nuclear generation and demonstrating renewed federal support for the Vogtle project,” Paul Bowers, chairman, president and CEO of Georgia Power, said. “At Georgia Power, we are focused on delivering value to our customers every day and we’re committed to completing these new units, which will provide millions of Georgians with carbon-free energy and help keep electric rates low for 60 to 80 years into the future.”
Continued construction on the project has been approved since December 2017, following a bankruptcy by Vogtle’s former partner Westinghouse that March. Progress continues, with pressurizer placed in January and 1,300 yards of concrete laid inside Unit 4’s containment vessel in December. Combined with interest savings from loan guarantees from the Department of Energy and nuclear energy fuel savings, Georgia Power says the approved tax credits will lead to peak rate impact to its customers of well below the previously approximated 12 percent.
