Showing posts with label construction unions. Show all posts
Showing posts with label construction unions. Show all posts

Monday, May 15, 2017

Westinghouse & Southern Company: Good News and Bad News for Workers


Late on Friday, May 12, 2017, the Southern Company agreed to take over construction of the nuclear construction site at Plant Vogtle.

This means that the 6,000 workers on site in eastern Georgia will be able to continue building the reactors at least until June 3.

Southern Nuclear (a subsidiary of the Southern Company) and Georgia Power will become the main contractor for the Plant Vogtle expansion whose ownership is shared between Georgia Power, Oglethorpe Power, the Municipal Electric Authority of Georgia, and Dalton Utilities.

Westinghouse, which had filed for bankruptcy in March, appears ready to walk away from the project if it can receive approval from the bankruptcy court, leaving the future of the two reactors in the hands of the utilities and the Georgia Public Service Commission.

Georgia Power still has not committed to completing both reactors.

Options include completing one or both reactors, converting one or both reactors to natural gas, or giving up on the project entirely.

The role of the Georgia Public Service Commission is becoming extremely important as discussions continue on how to pay for the two new reactors, which are billions of dollars over budget.

E&E News reports that

"Georgia Power has a settlement with the Public Service Commission on how to handle Vogtle's costs going forward. The utility and the PSC staff negotiated the agreement, in part, after the project's costs rose 30 percent from when it started.

The settlement includes the utility absorbing an amount through a lower rate of return on equity if the reactors are not online by 2020. Consumers would shoulder the rest.

Southern stated in filings earlier this month that the project is not likely to meet that deadline. Georgia Power executives confirmed the same in a routine hearing about the project's cost and schedule last Thursday.

Georgia Power has already hinted that it will want to revisit that settlement, which was put in place months before Westinghouse filed for bankruptcy protection. The PSC staff has held firm that the agreement remains in place, according to emailed statements obtained by E&E News (Energywire, May 5)."

The PSC took comments from the public at last Thursday’s meeting, and many were not pleased that Georgia utility ratepayers have been paying for the plants since 2009 when Georgia Power began charging customers for the project’s costs years before the plants would come actually generate electricity.

WSAV-TV (Savannah, Ga.) has nicely captured the current situation and you can watch their report here.

Atlanta Progressive News reports that the next public hearing on Vogtle will be June 29, 2017, when the construction monitors on PSC staff will testify.