A critical vote in September by the board members at Oglethorpe Power, owners of 30 percent of the Plant Vogtle expansion project in Georgia, could decide the fate of the project, where Georgia Power recently announced a significant cost escalation compared with previous estimates.
Georgia Power said on August 9 that costs had risen with their share of the project jumping from $7.3 billion to $8.4 billion The entire project costs had jumped by $1.5 billion. For Oglethorpe power, owning close to a third of the project, costs had risen by $450 million, World Nuclear Association reported.
The remaining shares of the project are held by MEAG Power, which owns 22.7 percent and Dalton Utilities, which owns 1.6 percent.
The immediate question is whether or not a retreat by Oglethorpe Power would create a domino effect that caused the other owners to back away from the project, as well. The alternative would be for the remaining owners or a new funding partner purchase all or some of Oglethorpe's holdings.
Oglethorpe Power had set aside $7 billion for its share of the Vogtle project, but the latest cost jump would have that funding dwindle down to a negligible amount, WNA said. Part of the Oglethorpe board's consideration, meanwhile, would certainly be focused on whether or not costs would go up further before the Vogle Units 3 and 4 are completed. The estimated start up dates for each reactor is, respectively, in November 2021 and 2022.
Oglethorpe President and Chief Executive Officer Mike Smith told investors in a recent conference call that the most logical decision was an all or nothing approach. Given the learning curve advantageous in building two reactors – the first project informing the second with lessons learned – it would not be smart to just complete Unit 3 to save funding. “If you're going to complete Unit 3 it makes all the sense in the world to complete Unit 4,” he told investors.