Energy Department reaches financial close on additional loan guarantees for new Vogtle units

U.S. Secretary of Energy Rick Perry recently announced that the Department of Energy (DOE) reached financial close for up to $3.7 billion in additional loan guarantees to finance the continued construction of Vogtle Units 3 and 4 at the Alvin W. Vogtle Electric Generating Plant near Waynesboro, Ga.

DOE issued guarantees of loans of up to $1.67 billion to Georgia Power Company (GPC), up to $1.6 billion to Oglethorpe Power Corporation (OPC) and up to $415 million to three subsidiaries of the Municipal Electric Authority of Georgia (MEAG Power).

“We are very thankful for the continued support of the Department of Energy for the Vogtle project and are pleased to finalize an additional loan guarantee for our share of the project,” Elizabeth B. Higgins, executive vice president and chief financial officer for OPC, said.

DOE will now guarantee a total of up to $12 billion in loans for the project, including existing guarantees of up to $8.3 billion in loans provided in 2014 and 2015.

“The Vogtle project is critically important to supporting the Administration’s direction to revitalize and expand the U.S. nuclear industry,” Perry said. “A strong nuclear industry supports a reliable and resilient grid, and strengthens our energy and national security. As I’ve witnessed firsthand today, Vogtle is also an energy infrastructure project with a massive scope employing thousands of workers. This project is rebuilding a highly skilled U.S. nuclear workforce and supply chain for the future.”

The project is the first new nuclear power plant to be licensed and begin construction in the United States in more than three decades.

“The progress we are marking today is a direct result of the tremendous support the project has received,” Southern Company Chairman, President and CEO Tom Fanning said. “From the very beginning, public and private partners have stood with us as we endeavor to build the first new nuclear development in the U.S. in a generation. Everyone involved in the project remains focused on sustaining our momentum and is poised to execute on the important work to come in the days ahead.”

Once operating, the two new reactors are expected to provide more than 17 million megawatt-hours of electricity annually. The two new reactors at Vogtle will supplement the two existing reactor units at the site.

Approximately 7,500 construction workers are currently on site, and more than 9,000 workers are expected to be on site during peak construction. Once the units begin operation, approximately 800 permanent jobs are expected.