New Projects, Reactors

Southern, Oglethorpe don’t have to pay nuclear loan subsidy fee

Southern Co. (NYSE: SO) and Oglethorpe Power Corp. will not have to pay a fee to secure government loans to build the new nuclear reactors at Plant Vogtle.

The two companies are not required to pay a credit subsidy fee on a $6.5 billion loan approved by the U.S. Department of Energy in February, according to the Houston Chronicle. The fee would have compensated the government for the financial risk involved in making the loan, and not requiring the fee suggests the government believes the projects are sure financial bets, the article said.

Officials with the U.S. Department of Energy said in the article that they used a standardized system to calculate the charges.

Two Westinghouse AP1000 nuclear reactors are under construction at Plant Vogtle in Georgia. Units 3 and 4 will each generate 1,100-MW and are expected to reach commercial operation by 2017 and 2018.

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