ATLANTA (AP) — The newly operational Unit 3 at Plant Vogtle, a significant milestone as the first American nuclear reactor constructed from the ground up in decades, is now successfully supplying electricity to the grid. However, the high cost of the Georgia power plant, which came in seven years behind schedule and a staggering $17 billion over budget, might deter other utilities from considering nuclear power as a viable option for achieving a carbon-free future.
Georgia Power Co. revealed on Monday that after completing rigorous testing, Unit 3 has entered commercial operation. This unit has the capacity to generate 1,100 megawatts of electricity, which can power approximately 500,000 homes and businesses. While the electricity is being supplied to various utilities in Georgia, Florida, and Alabama, Southern Co. subsidiary Georgia Power alone serves about 2.7 million customers who benefit from this new power source.
On Monday, Chris Womack, the CEO of Atlanta-based Southern Co., expressed his delight in a telephone interview, stating that constructing a nuclear reactor from inception to completion in the United States had not been accomplished in over 30 years. He emphasized that successfully achieving this milestone was a remarkable feat for their company, the state, and the customers in Georgia.
In addition to the newly operational Unit 3, progress is also being made on a fourth reactor at the Plant Vogtle site, where two earlier reactors have been generating electricity for many years. The Nuclear Regulatory Commission announced on Friday that the loading of radioactive fuel into Unit 4 is imminent and is expected to be completed before the end of September. The Unit 4 reactor is slated to commence commercial operation by March.
Initially estimated at $14 billion, the third and fourth reactors were originally planned to cost their owners a combined sum. However, due to various challenges and delays, the projected cost has escalated dramatically, and they are now expected to amount to a staggering $31 billion. This cost escalation does not even take into account an additional $3.7 billion paid by the original contractor, Westinghouse, to the owners as compensation for discontinuing the project. When factoring in this payment, the total expenditure reaches nearly $35 billion.
Construction of the third reactor commenced in 2009 with the intention of generating power by 2016. However, as a result of unforeseen obstacles, the project experienced significant delays, finally reaching commercial operation after a seven-year extension.
Vogtle holds significant importance as government officials and some utilities turn to nuclear power as a solution to combat climate change by generating electricity without relying on natural gas, coal, and oil. However, the current focus in the United States is largely on smaller nuclear reactors, as advocates hope these smaller-scale projects can be completed without the cost and schedule overruns experienced by Vogtle.
Despite its significance, Southern Co.’s CEO, Chris Womack, stated that the company has no plans to add more reactors to its existing fleet. Instead, he encourages others in the country to explore nuclear power investments.
In Georgia, nearly every electric customer bears the cost burden of Vogtle. Georgia Power owns the largest share of the reactors at 45.7%, while other shares are held by Oglethorpe Power Corp., the Municipal Electric Authority of Georgia, and the city of Dalton. Oglethorpe and MEAG intend to sell power to cooperatives and municipal utilities across Georgia, as well as in Jacksonville, Florida, and parts of Alabama and the Florida Panhandle.
Georgia Power’s residential customers are expected to pay over $926 each due to an ongoing finance charge, with an additional $4 per month increase when the third unit begins generating power. These rate increases come shortly after residential customers already experienced a $16-a-month hike to cover higher fuel costs.
Experts have repeatedly testified before commissioners that the high construction costs of Vogtle have outweighed any potential future benefits from low nuclear fuel costs.
During a Georgia Public Service Commission hearing examining spending, Tom Newsome, the director of utility finance for the commission, testified on Thursday that the cost increases and schedule delays associated with Vogtle have completely negated any potential benefits on a life-cycle cost basis.
The utility, Georgia Power, is likely to face opposition from long-standing opponents of the plant, who argue that power generated from solar and wind sources would be more cost-effective. They believe that making ratepayers shoulder the burden of mistakes made during Vogtle’s construction will unfairly bolster the utility’s profits.
Bob Sherrier, a staff attorney at the Southern Environmental Law Center, stated that while capital-intensive and expensive projects like Vogtle may benefit Georgia Power’s shareholders, who have seen record profits during the project’s troubled construction, they are not the most economical option for Georgians who are experiencing the effects of repeated bill increases.
The final decision on who will pay for the remaining costs of Vogtle, including the fourth reactor, lies with the commissioners. Customers will be responsible for the share of spending deemed prudent by the commissioners, while the company and its shareholders will bear the cost of spending deemed wasteful.
Regarding the amount that will be passed on to customers, Georgia Power CEO Kim Greene mentioned that the company has not yet made a final determination. The details will be clarified as they approach their prudence filing.
