The first American nuclear reactor constructed from scratch in decades is now delivering electricity to the grid, although the Georgia power plant’s substantial cost overrun could hinder utilities from adopting nuclear power as a means toward a carbon-free future.
Georgia Power Co. recently announced that Unit 3 at Plant Vogtle, situated southeast of Augusta, has concluded testing and is officially operational for commercial purposes.
However, the unit’s completion is seven years behind schedule and $17 billion over budget.
Unit 3 can generate 1,100 megawatts of electricity at full capacity, enough to power around 500,000 homes and businesses.
The generated power is being distributed to several utilities in Georgia, Florida, and Alabama, along with Southern Co. subsidiary Georgia Power’s 2.7 million customers.
“This hadn’t been done in this country from start to finish in some 30-plus years,” Chris Womack, CEO of Atlanta-based Southern Co. said.
“So to do this, to get this done, to get this done right, is a wonderful accomplishment for our company, for the state and for the customers here in Georgia,” Womack added.
A fourth reactor is also nearing completion at the Vogtle site, where two earlier reactors have been operational for decades.
The Nuclear Regulatory Commission recently approved loading radioactive fuel into Unit 4, with commercial operation expected by March.
Originally slated to cost $14 billion, the third and fourth reactors are now projected to cost $31 billion.
Additionally, the original contractor, Westinghouse, paid the project owners $3.7 billion to withdraw from the venture. This brings the total expenditure close to $35 billion.
Vogtle’s significance lies in its potential to contribute to climate change mitigation by producing electricity without burning fossil fuels.
“In terms of us making additional investments, at this time is not something that we’re going to do, but I do think others in this country should move in that direction,” Womack claimed.
Almost every electric customer in Georgia will contribute financially to Vogtle. While Georgia Power owns 45.7% of the reactors, smaller shares are held by entities like Oglethorpe Power Corp. and the Municipal Electric Authority of Georgia.
Customers are projected to pay over $926 each due to an ongoing finance charge, and residential customers will see an additional $4 per month when Unit 3 starts producing power.
Critics argue that solar and wind energy would be cheaper alternatives, and they contend that allowing Georgia Power to charge ratepayers for mistakes will unfairly boost the utility’s profits.
The high construction costs have reportedly negated any potential benefit from lower nuclear fuel costs in the future.
“The cost increases and schedule delays have completely eliminated any benefit on a life-cycle cost basis,” Tom Newsome, director of utility finance for the commission, said.
“While capital-intensive and expensive projects may benefit Georgia Power’s shareholders who have enjoyed record profits throughout Vogtle’s beleaguered construction, they are not the least-cost option for Georgians who are feeling the sting of repeated bill increases,” Southern Environmental Law Center staff attorney Bob Sherrier declared.
