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Georgia Power reaches settlement in Vogtle cost-sharing lawsuit

October 03, 2022

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Georgia Power Co. reached a settlement with one of several Alvin W. Vogtle Nuclear Plant co-owners over cost-sharing for the two reactors under construction in which the Southern Co. subsidiary will take on more of the cost responsibility in return for dismissal of pending lawsuits.

Under the terms of the new settlement, detailed in a Sept. 29 Form 8-K filing, the Municipal Electric Authority of Georgia, or MEAG, which has a 22.7% ownership interest in both the two existing Vogtle units and the two new units, will not exercise a "tender option" and will retain its full ownership interest in Vogtle units 3 and 4. Georgia Power will pay a portion of MEAG's costs of construction, totaling about $76 million based on the current project capital cost forecast and will pay 20% of MEAG's costs of construction above the current forecast. Under the settlement, MEAG and Georgia Power both agreed to dismiss pending lawsuits.

Based on the current project capital cost forecast, the settlement will not require an additional charge to income by Georgia Power in the third quarter of 2022, according to the filing. Under the cost-sharing provisions of the Vogtle joint ownership agreements, Georgia Power agreed to bear responsibility for up to $180 million of qualified construction costs of the other owners of units 3 and 4, which is up to about $75 million for MEAG. 

[Abbie Bennett]

More: Georgia Power reaches cost-sharing deal with Vogtle co-owner

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