Caption: Georgia Power's Plant Vogtle
Georgia Power, a subsidiary of Southern Co. (NYSE: SO), filed documents with the state of Georgia that said overruns at the Plant Vogtle expansion project are now pushing the price tag to more than $7.5 billion.
The utility is asking the state to certify $1.4 billion in cost overruns and push the completion date back 18 months, according to The Atlanta Journal-Constitution. The state Public Service Commission was going to decide who will pay for the overruns when construction is completed, but the recent filing may prompt commissioners to make the decision sooner, the article said. Southern Co. and engineering, construction and procurement contractors Chicago Bridge & Iron (CB&I, NYSE: CBI) and Westinghouse Electric are in court battling over whom is responsible for previous cost overruns for the project.
The PSC must determine if the additional costs are “prudent” or “imprudent.” If they are prudent or necessary, then customers may have to foot the bill. If they are found to be imprudent or unnecessary, then the companies will have to pay. Commissioners had agreed not to certify the decision until the first of the two Westinghouse AP1000 reactors was completed, which is now scheduled for 2019. The second unit is scheduled for completion in mid-2020. Initially, the reactors were supposed to cost $6.1 billion and be completed in 2016 and 2017.
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