MACON, Ga. — Georgia's Public Service Commission says it plans to hold hearings on whether to cap the amount that Georgia Power can charge ratepayers for building two new Plant Vogtle nuclear reactors.
In a news release Wednesday, the commission says they, Georgia Power and other interest groups have signed an agreement calling for a "prudency review."
Georgia Power originally proposed charging ratepayers $10.2 Billion for construction costs for Plant Vogtle’s Units 3 & 4.
Now, their agreement with the commission would cap that at $7.6 billion. The difference amounts to $240 dollars for every Georgian.
They also agreed to a "prudency review." The commission says it will hold hearings on whether these construction costs are warranted and then vote on the cap.
All those parties can present witnesses and evidence on whether the spending is necessary and "prudent." That includes groups that say Georgia Power's spending on its new nuclear plant is reckless and wasteful.
The plant expansion is years behind schedule and billions over budget.
In 2012, the estimated cost was $12 billion. Now, Georgia Power says it will cost at least $34 billion.
State regulators say that will likely mean higher rates for Georgia Power customers down the road.
The signed stipulation can be found on the PSC website under docket number 29849 or by clicking here.
A schedule for hearings will be released, the release says. PIA Staff, Georgia Power and interested intervenors will have the opportunity to present expert witnesses and evidence related to the proposed stipulation.
Ultimately, the five elected Commissioners of the PSC will make a ruling on the agreement. The Commissioners will not comment on the proposed stipulation until all the evidence has been heard.
The $7.562 billion described in the proposed stipulation is a cap on the amount of capital construction costs placed in rate base that were incurred prior to or on Unit 4’s commercial operation date of March 31, 2024. Any additional capital construction costs incurred after March 31 and prior to commercial operation will be the responsibility of Georgia Power and not the ratepayers.
Georgia Power is one of several owners of Plant Vogtle Units 3 and 4. Partners include Oglethorpe Power, MEAG Power and Dalton Utilities. Of those partners, the PSC has regulatory authority over only Georgia Power.
For ratepayers to incur capital construction costs, the Public Service Commission must determine the costs are reasonable and prudent, the release says. In the 17th Vogtle Construction Monitoring order – filed in January 2018 – $7.293 billion was approved by the Commission as “reasonable.”
The current proposed stipulation would deem that $7.293 billion “prudent” (a higher standard) and would add $200 million for unanticipated COVID related costs, $36 million for ad valorem taxes, and $33 million for construction monitoring costs. The monitoring costs were deemed prudent by the Commission in Docket 27800.
You can find out more on the Georgia Public Service Commission website.