Georgia Power users to pay less toward Vogtle in 2018

Georgia Power customers will see a slight reduction in their bills starting next month following an approval by state regulators Tuesday of a revised Nuclear Construction Cost Recovery fee charged to customers for the construction of the new Vogtle units.

The Public Service Commission says customers will in 2018 pay approximately $365 million toward construction costs for the reactors, offset by $139 million in savings stemming from the recent reduction of the corporate tax rate and the full payment of the $3.68 billion Toshiba Guaranty. In December, Toshiba Corp. paid Georgia Power and its partners in the Vogtle ownership the remaining $3.2 billion of the guarantee it had promised following the bankruptcy of former lead contractor Westinghouse Electric Co.

The commission says the average residential customer using 1,000 kilowatts a month will save about $1 per month, in contrast to estimates the company presented in late January, placing the savings at slightly over $2 a month.

On average, the customer pays about $100 toward Vogtle construction costs each year.

Last year, Georgia Power collected $443 million from ratepayers to finance construction of the units. A Georgia Power spokesperson says the company has collected over $1.6 billion in financing costs from ratepayers since 2011.

Consumer advocacy groups have been protesting a requirement put in place by the state in 2009 passing the burden of financing the project to Georgia Power customers, arguing that shareholders should also bear Vogtle’s financial burden.

The twin units being constructed in Waynesboro are expected to be complete by November 2022, five years behind the inception schedule and billions of dollars over the projected cost of $14.3 billion.

Construction at the site is now managed by Southern Nuclear.