Georgia Public Service Commission approves nuclear plant construction agreement

The Georgia Public Service Commission approved an agreement this week regarding a construction project at Plant Vogtle, a nuclear power electric generating facility near Waynesboro, Georgia.

The agreement is expected to save ratepayers $325 million over the next four years in the construction costs of units three and four at the plant.

“It’s never an easy process, and the nature of stipulations is that both parties give up a lot. But we are able
to front load a lot of the $325 million in savings to give ratepayers immediate relief,” Commission Chairman Chuck Eaton said. “I think the staff and company has done a great job.”

The agreement involves a reduction in the allowed return on equity (ROE) associated with the Nuclear Construction Cost Reduction (NCCR) tariff and other financing costs of Georgia Power, which owns 45.7 percent of Plant Vogtle. The reduction in ROE reduces shareholder’s earnings by $115 million over four years.

If the units are not in commercial operation by Dec. 31, 2020, additional ROE reductions will go into effect.

The commission also approved a $0 increase in the NCCR for 2017, as well as a motion to require Georgia Power to show customers their estimated savings in a message box on future bills.

Once operational, units Three and Four at Plant Vogtle will produce 2,200 Megawatts of power, enough electricity to power 500,000 homes.