Nuclear construction overruns won't hit Southern Co. profits

Georgia utility regulators rejected a plan that would have affected Southern Co. profits if it exceeds its budget while building two new Westinghouse AP1000 nuclear reactors at its Vogtle station.

The commission voted 5-0 to approve a compromise negotiated between its staff and Southern Co. business unit Georgia Power. As part of the agreement, Georgia Power said it will not legally challenge the power of utility regulators to ban the company from passing along "imprudent" construction costs even after those expenses are disclosed as part of semi-annual reviews. Company officials had earlier argued that regulators could not revisit construction spending after a review was complete.

PSC Chairman Stan Wise described the authority to disallow construction costs as "the hammer that we still have in our tool belt."

"Four years from now, if there is a failure in some way that is determined not to be reasonable, not to be prudent, this commission has the opportunity to go ahead and disallow those costs," PSC Chair Stan Wise told the Associated Press in an interview.

PSC staffers presented a plan in December 2010 that would have cut the utility's profit from the new plant if construction costs went $300 million over budget. If the power company built the project for $300 million under its target, it could receive a boost in earnings.

Georgia Power argued that a risk-sharing plan was illegal and unnecessary. The company also said trimming its profits would make it more difficult to get investors to buy its stock, making it more expensive to raise money for capital projects.

Subscribe to Nuclear Power International magazine.

Sponsored by FLSmidth

Related Articles

GOP tries to undercut nuclear deal with warning to Iran

Republican lawmakers warned the leaders of Iran on Monday that any nuclear deal they reach with President Barack Obama could expire the day he leaves office.

Utility poised to report on Diablo Canyon nuke plant safety

The utility that owns California's last operating nuclear power plant will submit research to federal regulators this week analyzing the threat of earthquakes at the Diablo Canyon facility.

Follow Power Engineering on Twitter
Latest News

Saber Partners to advise regulators on $1.3B Duke Energy deal

The Florida Public Service Commission has selected Saber Partners, LLC to advise it...
Dean Oskvig announces retirement from Black & Veatch

Black & Veatch names heads of Oil & Gas, Power businesses

Black & Veatch appointed two people to lead its Oil & Gas and Power business units. &...
Enphase Energy primary inverter supplier for Euro Energy Services solar PV projects

Enphase Energy chosen as primary technology partner by Euro Energy Services

Enphase Energy, Inc. has been chosen by Euro Energy Services, a major U.K. solar energy firm,...
Iberdrola wind output to Southern California Edison

SCE to buy output from planned 132-MW wind energy project

Iberdrola Renewables signed a 15-year contract to supply Southern California Edison (SCE) wit...
Tecogen supplies combined heat & power module to NY county government building

NY county gov't building to use cogeneration power unit

Tecogen Inc. (Nasdaq: TGEN) sold a combined heat and power (CHP) module for installation at a...
Portland General Electric says natural gas-fired power plant is 60% complete

Portland General Electric reports Carty plant 60% complete

Portland General Electric Co. (NYSE:POR) said July 28 that construction of the 440-MW Carty n...
PSEG Fossil natural gas-fired generating facility proposed

PSEG Fossil pursues new gas-fired capacity to replace deactivated Edison units

PSEG Fossil LLC has proposed a natural gas-fired generating facility located in Edison, New J...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Buyers Guide Product Listings

Nondestructive Examination and Testing

Advanced nondestructive examination, NDE, techn...

Engineering Services

Structural Integrity Associates, Inc. (SI) is a...

Buyers Guide Company Listings

Power Industry Wire News

Quantum Energy Files North Dakota Air Quality Permit Application

Quantum Energy Files North Dakota Air Quality Permit Application

Industrial Info Resources Brings 50 New Jobs to Galway, Ireland

Industrial Info Resources Brings 50 New Jobs to Galway, Ireland

H.K. Porter Announces Versatile Powerlink(TM) Bolt Cutters

H.K. Porter Announces Versatile Powerlink(TM) Bolt Cutters

Vantage Notifies Holders of 7.875% Senior Convertible Notes Due 2042 of Their Repurchase Option

Vantage Notifies Holders of 7.875% Senior Convertible Notes Due 2042 of Their Repurchas...

Blue Earth Announces David J. Prezioso as CEO of Blue Earth CHP and Opening Two New CHP Hubs in the Southeast and Midwest Regions

Blue Earth Announces David J. Prezioso as CEO of Blue Earth CHP and Opening Two New CHP...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>