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© 2020 Access Intelligence, LLC – All Rights Reserved
We are the first in your inbox with the highest news in the industry and we keep it smarter and one step ahead in this competitive and ever-changing market.
Southern Co. says it remains within the deadline for Units 3 and four complete of Vogtle’s nuclear expansion allocation until November 2021 and November 2022, respectively, despite the effects of the COVID-19 pandemic.
The company, in its July 30 earnings report, at the time of the 2020 quarter, said coronavirus problems had a higher percentage of Georgia Power’s overall allocation prices across approximately $150 million. Southern stated that the effect of the pandemic on the parent company’s operations was less than expected, indicating that an estimated effect of between $250 million and $400 million on its core revenue can be offset by cost control measures.
However, the app warns that it expects economic uncertainty to persist in its operations until the end of the year.
Thomas Fanning, president, president and CEO of Southern Co., said Thursday: “The Vogtle 3 team and four units continue to work incredibly hard and make significant progress on the site, even as we manage the pandemic. As we move forward in the final stages of Structuring Unit 3 and approaching the fuel load, I can assure you that the structure team, our control team and our partners are more focused than ever on the final touch of the first unit of this historic project. Next year. Key milestones, we recognize that the site’s competitive paint plan is difficult to fit, as the maximum of our Commissioning Day features has been used possibly 2021. But site control and paint force remain motivated to continue the competitive schedule to provide a margin on the November regulatory commissioning date. »
Approximately 9,000 employees were at the Vogtle site before the pandemic began. In April, about 2,000 jobs were removed from the project, after absenteeism increased and coronavirus cases increased at the site. Southern said the number of instances among staff had declined significantly, but that it began to increase in mid-June and “continues to have an effect on the degrees of productivity and the speed of the final touch of operations.”
Southern reported operating revenues of $4.62 billion for the quarter at the time, a 9.4 percent decrease from its 22019 figure of $5.1 billion. It reported a profit of $612 million for the quarter, to $899 million in 22019.
“Despite the difficult situations of the COVID-19 pandemic, Southern Company and its subsidiaries never took a day off,” Fanning said. “Our electric power and fuel companies have continued to provide cleanliness, safety, reliability and strength to consumers while operating in accordance with appropriate fitness and protection protocols. Whether it’s our reaction to the primary storms in the southeast or our paintings in our communities to publicize justice, we continue to produce results, adding continuous progress in building new nuclear power plants.”
Southern, in its results presentation, noted that the corporate “focused on the service dates approved regulatoryly in November 2021 and 2022” for Vogtle Units 3 and 4. He stated that “the target dates for commissioning the competitive paint plan on the site remain May 2021 and 2022, respectively” for the units. The company has indexed start dates for milestones based on a “competitive site painting plan” and a schedule required to meet the start dates of November 2021 and 2022.
Vogtle’s expansion includes two Westinghouse AP1000 reactors, each with a generating capacity of approximately 1,100 MW. The new sets will be registered for two existing sets at the site near Waynesboro, Georgia.
The Georgia Public Utilities Commission approved the expansion in 2009 and the structure permits were issued in 2012, however, the allocation was hampered by delays in structure and cost overruns. Westinghouse filed for bankruptcy in March 2017. A progress of the official follow-up structure as recently as June said the allocation “is very unlikely” to meet the state-approved deadlines.
The company plans to begin bloodless hydroelectric testing in the September to November 2020 era for Unit 3, where Southern said the structure was 90% complete. He said the start of hot functional testing on the unit may begin in early October this year and begin no later than February 2021. Unit 3’s fuel load may occur early next year, or no later than next summer.
Fanning said Thursday: “From a fee perspective, Georgia Power’s proportional percentage of the overall capital charge of the planned allocation increased at the time of the quarter through about $150 million to $8.5 billion, largely reflecting the estimated effects of COVID-19 and other unforeseen prices and recovery, based on our allocations for the rest of the allocation. As a result of the percentage decisions, Georgia Power recorded an after-tax rate of approximately $110 million at the time of the quarter. »
Fanning said Southern Co. “also reassessed our price estimates and the time required to complete the final stages of the structure, resulting in adding hours to the direct structure forecast for any of the units. Given these additions, the direct structure of Unit 3 is now approximately 90%. We continue to expect that the final touch of the structure of approximately 2% consistent with the month will be consistent with the competitive paint plan and the final touch of about 1% consistent with the month to meet the reference schedule. »
Georgia Power’s percentage of the total capital charge that accumulates “went from about $150 million to $8.5 billion,” Fanning said. “This represents an accumulation of just under 2%, in fact not at all, but largely due to the effect of COVID. The most important moment was a reestimation of the amount of effort, and therefore the hours required to complete the final stages of construction. Georgia Power allocated its remaining contingencies and added a new contingent of approximately $115 million, further reducing the threat of long-term charges through the final touch of Unit 4. Estimated prices related to COVID-19 are between $70 million and $115 million for Georgia. Power.”
Georgia Power holds a 45.7% stake in the lease. Other assigned homeowners come with Oglethorpe Power (30%), MEAG Power (22.7%) and Dalton Utilities (1.6%). Southern Nuclear is the owner and operator of the homeowners group.
—Darrell Proctor is a POWER editor (DarrellProctor1, @POWERmagazine).
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