Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (2024)

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (1)

WAYNESBORO, Ga. — Two nuclear reactors in Georgia were supposed to herald a nuclear power revival in the United States. But the project isseven years late and $17 billion over budgetas Georgia Power Co. announced the first new reactor at its Plant Vogtle could reach full electrical output by Saturday.

They’re the first U.S. reactors built from scratch in decades — and maybe the most expensive power plant ever. Georgia electric customers have already paid billions, and state regulators will ultimately decide if they’re on the hook for billions more.

Some of the key promises of Vogtle —like building modules offsiteand shipping them for cheaper on-site assembly — did not pan out. Construction delays drove Westinghouse Electric Co., a titan of American industrial history,into bankruptcywhen the company couldn’t absorb overruns.

Vogtle advocate:Reps. Rick Allen, Jeff Duncan tour Plant Vogtle, advocate for more nuclear construction

Vogtle investigation:NRC investigation concludes minor protocol violated at Plant Vogtle Unit 3

And the lessons could be important because government officials and some utilities areagain looking to nuclear powerto alleviate climate change by generating electricity without burning natural gas, coal and oil.

Vogtle's new Unit 3 began generating power in March and is scheduled to reach commercial operation by June. Unit 4 is next door on the same rural Burke County site southeast of Augusta, along with two older reactors. It's supposed to be finished by early 2024.

Georgia Power and its parent, Atlanta-based Southern Co., say the reactors are a triumph. Chris Womack, before he ascended from Georgia Power to become Southern Co. CEO, told The Associated Press that Vogtle is “absolutely” a success, arguing reliable power and cheap fuel costs will benefit the utility's 2.7 million customers for decades.

“We recognize the upfront cost and some of the challenges that we faced," Womack said in January at Vogtle. "But yeah, this is value. This is value contribution to customers, to the state, to the energy grid, to bringing back the nuclear industry and showing that we can do hard things.”

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (2)

As with Vogtle, supporters of future nuclear plants promisenew-and-improved designscan be mass-produced at reliable prices. But Vogtle opponents scorn renewed nuclear ambitions.

“I don’t see how anybody in their right mind cannot avoid saying ‘Well, what evidence do you have?’” said David Schlissel, a utility analyst who testified against Units 3 and 4 after fighting the first two Vogtle reactors in the 1970s. They also finished fabulously late and over budget.

A heavy cost for energy

In Georgia, almost every electric customer will pay for Vogtle. Georgia Power currently owns 45.7% of the reactors. Smaller shares are owned byOglethorpe Power Corp., which provides electricity to member-owned cooperatives, theMunicipal Electric Authority of Georgiaand the city of Dalton. SomeFloridaand Alabama utilities have also contracted to buy Vogtle's power.

Currently, the owners are projected to pay $31 billion in capital and financing costs, Associated Press calculations show.

Japan's Toshiba Corp., which then owned Westinghouse,paid $3.7 billion to the Vogtle ownersto walk away from a guarantee to build the reactors at a fixed price after overruns forced electric industry pioneer Westinghouse into bankruptcy in 2017. Add that to Vogtle’s price and the total nears $35 billion.

A U.S. Department of Energy reportdetails Vogtle's other failings: Work began with incomplete designs and managers repeatedly failed to realistically schedule tasks. Experienced workers were in short supply anddefective work often had to be redone. Workers quit for other jobs and the COVID-19 pandemic led to high absenteeism.

Calculations show Vogtle's electricity will never be cheaper than other sources Georgia Power could have chosen, even after the federal government reduced borrowing costs byguaranteeing repayment of $12 billionin loans.

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (3)

The right choice?

Yet regulators say Vogtle was the right choice.

“Vogtle 3 and 4 will be a success not only for Georgia but for our country the moment that they go into service," said Tricia Pridemore, who chairs the elected Public Service Commission of five Republicans. She argues nuclear power provides clean energy with prices immune from international market swings, and that building Vogtle increased U.S. nuclear engineering know-how.

Customers are already paying. Regulators estimate Georgia Power will collect $4.1 billion in advance charges, or $913 for every ratepayer. Some cooperative customers are also paying — nearly $500 million through March.

Georgia Power's residential customers will begin paying an additional $3.78 per month as soon as Unit 3 achieves commercial operation. But the final bill won't come until Unit 4 is complete. Commissioners must then decide how much of Georgia Power's spending was prudent while disallowing wasted amounts. Commissioners earlier approved $5.7 billion as prudent, but Bryan Jacob of the Southern Alliance for Clean Energy said “management failures” should be scrutinized.

“Ratepayers shouldn’t foot the bill for things that management could have done right in the first place," Jacob said.

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (4)

Profiting from mistakes

Critics fear Georgia Power will profit from mistakes. Staff estimates show Georgia Power could earn an extra $9.4 billion in profit over 60 years if allowed to charge for all spending. Customers could pay $35.7 billion overall, $20.5 billion more than originally projected.

“If they can get away with it, they benefit from screwing up,” said Schlissel, the utility analyst.

Pridemore said it may be unfair to penalize Georgia Power for overruns beyond its control, but dismissed complaints about undue profits. “I’m very familiar with the mistakes,” Pridemore said, referring to commission monitoring of Vogtle construction.

Womack said Georgia Power won't try to collect for all overruns, promising a “balanced” outcome. Southern Co. has written off $3.26 billion in Vogtle losses since 2018, suggesting it won't recoup those costs.

“We’ll look at the best interests of our customers, but also look at the investments that we’ve made here and what’s good for the company," Womack said.

American utilities have heeded Vogtle's missteps, shelving plans for 24 other reactors proposed between 2007 and 2009. Two half-builtreactors in South Carolina were abandoned.

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (5)

No carbon-free with nuclear

But even opponents of Vogtle say the United States can't achieve carbon-free electricity without nuclear power. Jacob's group modeled how Southern Co. could achieve zero-carbon generation by 2035.

“It was very difficult for us to make the math work without nuclear," Jacob said.

Reactors can run almost constantly, unlike wind and solar generation, and uranium fuel adds little cost.

“It’s one of the first units that come online, because from an operational expense, it’s the lowest cost energy that’s available,” Womack said.

So nuclear proponents are trying again. A multinational partnership including theTennessee Valley Authorityseeks to build scaled-down reactors designed by General Electric and Hitachi. The first small modular reactor, under construction east of Toronto, could be complete by 2028. TVA may build one near Oak Ridge, Tennessee.

“Worldwide we need to double the amount of nuclear capacity, possibly even triple it by 2050 in order to meet our net-zero carbon goals," U.S. Assistant Secretary of Energy Kathryn Huff said in Washington in March, celebrating the partnership.

Some ideas are similar to Vogtle, including standardized designs and parts. Costs are rising for other designs planned forIdahoandWyoming. Still, supporters believe building smaller reactors will be less daunting.

Jay Wileman, CEO of GE Hitachi Nuclear Energy, acknowledges any nuclear revival must overcome past problems.

“Nuclear has to have a seat at the table, but we’ve got to earn our seat at the table,” Wileman said in March. "And to do that, we’ve got to be on schedule, on budget, and it’s got to be a competitive cost.”

But Vogtle observers view those pledges dimly.

“The industry has no track record of being right,” Schlissel said.

Georgia nuclear rebirth arrives 7 years late, $17 billion over cost (2024)

FAQs

How much did the nuclear plant cost overruns in Georgia? ›

Originally expected to cost $14 billion and begin commercial operation in 2016 (Vogtle 3) and in 2017 (Vogtle 4), the project ran into significant construction delays and cost overruns. Georgia Power now estimates the total cost of the project to be more than $30 billion.

What went wrong with Vogtle? ›

Georgia's Atomic plant Vogtle. One of the two nuclear reactors at Georgia's Plant Vogtle has been taken offline due to a “valve issue”. The announcement came roughly a week after Unit 3 of the reactor was powered down, according to a report in the Atlanta Journal-Constitution.

How much did the Georgia Vogtle cost? ›

They're the first two nuclear reactors built in the United States in decades. The new Vogtle reactors are currently projected to cost Georgia Power and three other owners $31 billion, according to calculations by The Associated Press.

How many nuclear plants are in Georgia? ›

Nuclear Plants

Georgia Power owns two nuclear facilities, Hatch and Vogtle, which provide about 20 percent of the electricity used in Georgia. The plants are managed by Southern Nuclear, a sister company owned by Southern Company, which specializes in nuclear operations.

Who financed Vogtle? ›

The Department of Energy (DOE) has issued a total of up to $12 billion in loan guarantees to Georgia Power Company (GPC), Oglethorpe Power Corporation (OPC), and three subsidiaries of Municipal Electric Authority of Georgia (MEAG Power) to support the construction of Vogtle Units 3 and 4 – the nation's next generation ...

How much did the Georgia Dome cost? ›

- The Georgia Dome was constructed at a cost of $214 million. The Teflon-coated fiberglass fabric roof stretches more than 395,000 feet. At 270.67 feet in height, the dome stood as tall as a 29-story building. Lengthwise the dome measures 745.75 feet, and is 606.96 wide.

What caused Vogtle delays? ›

“Once operating, each of the new units can produce enough electricity to power an estimated 500,000 homes and businesses.” The latest setback to Vogtle's Unit 3 was caused by a malfunction of the hydrogen system that supports the generator that converts the turbine's mechanical power into electricity.

Is Georgia building a nuclear power plant? ›

The carbon-free power comes at a high price. ATLANTA (AP) — The second of two new nuclear reactors in Georgia has entered commercial operation, capping a project that cost billions more and took years longer than originally projected. Georgia Power Co.

What kind of reactor is Plant Vogtle? ›

Vogtle Units 3 and 4 are Westinghouse AP1000 Generation III+ reactor technology, that is drawn from 50 years of successful operating experience.

Who owns Georgia Power? ›

Georgia Power is the largest of the four electric utilities that are owned and operated by Southern Company. Georgia Power is an investor-owned, tax-paying public utility that serves more than 2.4 million customers in all but four of Georgia's 159 counties.

How much land does Georgia Power own? ›

Land Management

Georgia Power owns approximately 90,000 acres of land reserved for future utility uses and power generation plant sites.

What is the largest power plant in Georgia? ›

Plant Vogtle is the largest generator of clean energy in the United States. Nuclear energy is a secure, dependable source of power for the United States.

Which US state has the most nuclear power plants? ›

Illinois is also the state with the largest number of nuclear power reactors in operation in the U.S.. This state of the Northern Midwest had 11 nuclear reactors in 2023, located in six different nuclear power plants.

Where is the largest nuclear power plant in the US? ›

Palo Verde Generating Station (PVGS) is considered the largest nuclear energy facility in the United States. It is located approximately 55 miles west of downtown Phoenix near the community of Wintersburg, Arizona.

Where does Georgia's electricity come from? ›

About 80% of Georgia's electricity generation comes from hydro resources (80.5% in 2021), with the remainder produced from natural gas and from a 20.7‑megawatt (MW) wind power plant (83.4 GWh in 2020).

How much did the UGA stem building cost? ›

The two-phase project, which took years of planning and construction, cost a total of $143.6 million. The project was funded by a combination of state bonds and institutional funds.

How much did the floating nuclear power plant cost? ›

The new cost of building Russia's floating nuclear power plant (FNPP) the Akademik Lomonosov, has spiked from an original estimate of 9 billion rubles ($140 million) in 2006 to a current 37 billion rubles ($ 740 million) official Russian sources report, citing government documents.

How much did the Flamanville 3 cost? ›

The regulatory authority gave its approval after a rigorous review involving almost 600 inspections. Construction on the project began in 2007 and has seen its budget increase to €13.2bn ($14.19bn).

How much have nuclear power plants cost over time? ›

Nuclear plants' power generating costs in the U.S. 2002-2022

The generation of electricity through nuclear power plants in the United States cost 30.92 U.S. dollars per megawatt-hour in 2022. Production costs were highest in 2012, when they came to 51.22 U.S. dollars in 2022 prices, but have decreased ever since.

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