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PSC approves Vogtle expenditures

The Georgia Public Service Commission has voted to verify and approve all expenditures made on the Plant Vogtle expansion project through Dec. 31, 2009.

The commission also voted to approve an agreement between the company and the Westinghouse-Shaw consortium that is building the two new units at Vogtle.

The agreement removes significant risk for customers by fixing the escalation of a significant portion of the project cost that would otherwise be subject to an index tied to construction market forces. In addition to removing escalation risk for a significant portion of the project, the agreement fixes the escalation rate for this portion of the project at a value that results in a cost well below the current budget for the project.

During the session the commission acknowledged communications from co-owners of the project, Oglethorpe Power, MEAG and Dalton Utilities strongly supporting approval of the contract amendment.

The commission on March 26, 2009, approved Georgia Power's request to certify the construction of the new nuclear power units at the Vogtle plant near Waynesboro, Ga. Under the agreement approved by the PSC, Georgia Power must file semi-annual monitoring and monthly status reports with the commission.

The semi-annual monitoring report includes any proposed revisions to the cost estimate, construction schedule or project configuration, as well as a report on actual costs incurred and an updated comparison of the economics of the certified project. The next semi-annual report will be filed Aug. 31.

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