Georgia Power Co. has announced that vibrations discovered in a cooling system will push back the start of commercial operations for the second new nuclear reactor. The delay means that Plant Vogtle’s Unit 4 will not commence generating power until sometime in the second quarter of 2024, specifically between April 1 and June 30. This announcement comes from the largest subsidiary of Atlanta-based Southern Co.
The utility reported that the vibrations encountered in Unit 4 were similar to those experienced during the startup testing for Unit 3, which began commercial operations last summer. The issue with Unit 3 was identified as a result of insufficient bracing installed by construction workers. Although the problem with Unit 4 has been rectified, there is still a substantial amount of testing to be completed before the March 30 deadline.
Georgia Power foresees a loss of approximately $30 million in profit for each month beyond March that Unit 4 remains idle due to an earlier directive from state utility regulators. The Georgia Public Service Commission has prohibited the company from earning an additional return on equity through a construction surcharge imposed on Georgia Power’s 2.7 million customers after March 30. Over time, the average residential customer has paid around $1,000 in surcharges to cover financing costs.
According to Georgia Power, its construction budget will not be impacted if Unit 4 becomes operational by June 30. However, the company will be required to incur an additional $15 million in monthly construction costs if the project extends into July. In December, regulators approved an additional 6% rate increase to address the remaining costs at Vogtle, which is projected to cost the typical residential customer $8.95 a month in addition to the $5.42 increase that took effect when Unit 3 began operating.
The new Vogtle reactors are estimated to cost Georgia Power and three other owners $31 billion. Additionally, the original contractor Westinghouse paid Vogtle owners $3.7 billion to withdraw from construction, bringing the total cost close to $35 billion. Originally projected to cost $14 billion and be completed by 2017, the reactors have faced significant delays. Units 3 and 4 are the first new American reactors built from scratch in decades, with the capacity to power 500,000 homes and businesses without releasing any carbon. Despite the renewed interest in nuclear power as a solution to climate change, the high cost of Vogtle could deter utilities from pursuing nuclear power. Georgia Power holds a 45.7% ownership of the reactors, with smaller stakes owned by Oglethorpe Power Corp., the Municipal Electric Authority of Georgia, and the city of Dalton. Additionally, some Florida and Alabama utilities have contracted to purchase power from Vogtle.
