An agreement has been reached with Toshiba, the parent company of Westinghouse -- the former primary contractor for new units 3 & 4 at the Alvin W. Vogtle Electric Generating Plant in Georgia – under which Vogtle’s co-owners will receive all remaining scheduled payments from Toshiba in the amount of $3.2 billion by Dec. 15, 2017.
MEAG Power’s share of the $3.2 billion final payment is approximately $732 million, with the remainder going to the other Vogtle co-owners -- Georgia Power Company, Oglethorpe Power and Dalton Utilities, MEAG Power said on Dec. 5.
To date, the Vogtle co-owners have received $455 million in total scheduled payments from Toshiba under the parent guarantee for the Vogtle 3 & 4 project and the final payment will result in total parent guarantee payments to the co-owners of $3.68 billion.
The agreement will become binding upon satisfaction of certain conditions, including but not limited to, approval of Toshiba’s board of directors and approval of the U.S. Department of Energy.
“The receipt of the remaining parent guarantee payments by December 15th is an important and favorable development in mitigating project risk,” said Jim Fuller, MEAG Power’s President and CEO. “Obtaining the value of these payment commitments will lead to lower costs for the reliable, emissions-free output from the new Vogtle Units.”
The Vogtle Electric Generating Plant consists of two nuclear units and is located near Waynesboro in eastern Georgia near the South Carolina border. The Plant Vogtle Units 3 & 4 project consists of two 1,100-megawatt Westinghouse AP1000 nuclear reactors being constructed in Burke County, Georgia of which MEAG Power’s share is 22.7%.
Additionally, through power purchase agreements with JEA and PowerSouth Energy Cooperative, MEAG Power will sell approximately 41.2% and 24.9%, respectively, of its share of the output in the nuclear expansion project for the initial 20 years of operation of each unit.
The Vogtle project is the first new nuclear power plant to be licensed and begin construction in the U.S. in more than three decades.
In order to further support the construction of the two advanced nuclear reactors at Vogtle, Secretary of Energy Rick Perry on Sept. 29 announced conditional commitments for up to $3.7 billion in loan guarantees to Vogtle’s owners -- up to $1.67 billion to Georgia Power Company, up to $1.6 billion to Oglethorpe Power Corporation and up to $415 million to three subsidiaries of Municipal Electric Authority of Georgia.
In 2017, Westinghouse filed for bankruptcy protection under Chapter 11.