ATLANTA — Georgia Power filed an update for the Nuclear Construction Cost Recovery tariff with the Georgia Public Service Commission indicating customers will pay $139 million less for the Plant Vogtle expansion in 2018.
Beginning in April, the typical residential customer using 1,000 kilowatt-hours per month will pay $2.70 less than expected per month in financing costs for the Vogtle project. The savings are due to recent changes in federal tax law, as well as the positive impact of the receipt of the full amount of parent guarantee payments from Toshiba.
The company continues to evaluate broader impacts of the changes in federal tax law, which will result in additional customer savings and plans to file a report with the Georgia PSC by Feb. 20.
In addition to the reduction in the NCCR tariff, the Georgia PSC recently approved $188 million, a total of $75 each for individual customers, in bill credits as a direct result of the Toshiba parent guarantee payments. The credits will be distributed across three separate Georgia Power bills in 2018.
The company is also working with the Georgia PSC to determine timing and details for a 2018 refund of $43.6 million the company earned above its allowed earnings range in 2016.
Parent guarantees backed by Toshiba as the parent company of Westinghouse, the original contractor for the Vogtle project, were put in place to protect Georgia electric customers at the beginning of construction. Toshiba fulfilled all remaining payments, for a total of $3.68 billion for all of the Vogtle co-owners in December 2017, eliminating a major risk for continuing construction of the nation’s only new nuclear units.
Georgia Power received unanimous approval to continue construction of the Vogtle 3 and 4 project from the Georgia PSC in December 2017. The decision followed months of review and evaluation of a unified recommendation conducted by the Vogtle co-owners prompted by the bankruptcy of former primary Vogtle contractor Westinghouse. As a result, the amount paid by customers will be reduced by more than $1.7 billion during the construction period.