Georgia Governor tries to scapegoat environmentalists as nuke plant costs rise

Georgia Governor tries to scapegoat environmentalists as nuke plant costs rise

Press Update
FOR
IMMEDIATE
RELEASE

07/17/2013
Contact
Jennifer
Rennicks,
Southern
Alliance for
Clean Energy,

865-235-1448, jennifer@cleanenergy.org

Governor Ignores Reality of Vogtle Cost Increases
Georgia Public Service Commission urged to play close attention as hearings on new nuclear reactor project begin tomorrow

Atlanta, GA (July 17, 2013) - Recent press reports quote Georgia's Governor Nathan Deal blaming those who oppose Southern Company and their utility partners' attempts to build two new nuclear reactors at Plant Vogtle near Waynesboro as responsible for significant scheduling delays

and cost increases. Beginning tomorrow, Thursday, July 18,
2013 the Georgia Public Service Commission (PSC) begins
hearings in which Georgia Power witnesses will testify in the
eight semi-annual Vogtle nuclear construction project
monitoring dockets. Georgia Power has formally requested
that the PSC approve a $381 million increase to the certified
cost and to approve a revised construction schedule reflecting
a possible delay of approximately 18 months.

Dr. Stephen A. Smith, executive director of the Southern
Alliance for Clean Energy, issued this statement in response
in advance of the hearing and in response to the Governor's
quotes:

"We urge the Georgia Public Service Commission to ignore
Governor Deal's factually-inaccurate and inflammatory
rhetoric and instead pay close attention to the upcoming
testimony from Georgia Power's experts as well as concerned
members of the public during tomorrow's hearings and
throughout this crucial Vogtle monitoring docket.

The Vogtle project, as they know all too well, is off-track with
serious cost overruns and scheduling delays. Building two
more expensive nuclear reactors at Vogtle has always been a
high-risk project, subject to many pitfalls along the way. And
now, as many predicted, those realities are unfolding and
ratepayers are at even greater financial risk. The Commission
needs to put the interests of Georgia's families and small
businesses before corporate profits. Given the evidence we've
seen, we urge them to deny the Company's request to
increase the certified cost. It's past time for the Company
and their shareholders to shoulder this burden not just the
ratepayers."

Background: Georgia Power and it's utility partners,
Oglethorpe Power, MEAG and Dalton Utilities intend to build
two new Toshiba-Westinghouse AP-1000 reactors and are
considered the lead new reactor project in the country and
have been offered a conditional $8.3 billion tax-payer
financed loan guarantee. Originally, the total project cost was
just over $14 billion with Vogtle reactor unit 3 to be online in
April 2016 and reactor unit 4 in April 2017. Lawsuits between
the Company and project contractors of approximately $900
million in cost increases are still outstanding. Additionally,
anti-consumer state legislation, SB31, Georgia's "nuclear
tax," passed in 2009 allows Georgia Power to charge some
customers in advance for financing costs associated with the
new reactors, also referred to as "Construction Work in
Progress" or "CWIP," regardless of cost increases, delays or if
the project is suspended.

Founded in 1985, the Southern Alliance for Clean Energy is a nonprofit organization that promotes responsible energy choices that create global warming solutions and ensure clean, safe, and healthy communities throughout the Southeast. Learn more at www.cleanenergy.org.