Costs

Georgia Power's proportionate share of the estimated in-service cost of the Plant Vogtle Units 3 and 4, based on its current ownership interest of 45.7 percent, is approximately $6.1 billion.* Southern Company estimates** residential customers using 1,000 kilowatt-hours per month would see an increase of about $10 per month in 2018, when both units are fully operational.

*This figure is subject to adjustments and performance bonuses under the Engineering, Procurement and Construction (EPC) contract.
**The Georgia PSC will determine the final rates.

Economic Impacts

• Up to $14 billion of investment in the state of Georgia
• 3,500 quality jobs during construction
• 800 high-paying jobs for the life of the plant
• Tax dollars to the local communities and the state over the expected 60-year life

Recovering costs
Historically, utilities are allowed to recover the cost of investments, such as power plants, after the plants begin to operate and serve customers. During the construction period, utilities incur construction and related financing costs.

Because of the tremendous cost of investments such as power plants, utilities also incur additional costs to pay the financing incurred during the construction period. Typically, recovery of financing costs is deferred during the construction period, added to the ultimate cost of the plant and recovered from customers over the anticipated life of the plant.

As an alternative, rates can be set to allow for recovery of financing costs during the construction period — and avoid additional interest charges. Utility credit rating agencies view recovery of financing costs during construction positively, which can result in lower financing costs for all utility projects. Better credit ratings can lower the interest costs the company — and therefore customers — must incur to finance the cost of new power plants.

Benefits to financing during construction:

• The cost of the plant will be phased-in over 7 years, versus included in rates over only two years. (Approx. 1.3 percent/yr over 7 years for total of 9 percent, versus approximately 12 percent total over two years.)
• Customers will avoid paying $300 million in interest charges, thereby saving money over the life of the plant.
• The in-service cost of the plant will be reduced by nearly $2 billion (30 percent).
• Total rate increases required to cover the cost of the plant when it goes into service will be nearly 3 percent lower.
• Preserving utility credit ratings reduces costs for other projects and helps keep customer rates low.

The public supports nuclear energy.

• In a 2009 survey of residents living near Plant Vogtle, 92 percent said they would be in favor of adding additional units to the site.
• A June 2008 Zogby poll reports that 67 percent of Americans favor building new nuclear energy plants.
• In March 2009, a Bisconti Research poll found that 8 out of 10 Americans support federal incentives to jump-start carbon-free energy technologies.
• Visits to nuclear energy plants increase public understanding and support. In a 2009 survey by Bisconti Research, one in four plant neighbors said they felt more favorable about the plant after visiting the plant information center, and 97 percent of those who had visited the nearby plant said that adding a new reactor at the nearest plant site would be acceptable to them.