Summary
Southern Company, through its subsidiary Georgia Power, has entered into significant agreements with the U.S. Department of Energy (DOE) and the Federal Financing Bank (FFB) related to the construction of Plant Vogtle Units 3 and 4. This filing details the execution of a Loan Guarantee Agreement, a Note Purchase Agreement, and related security and ownership agreements. The core of this announcement is the establishment of a loan facility of up to approximately $3.46 billion, backed by a DOE loan guarantee. This facility will provide funding for a portion of the eligible construction costs for the new nuclear units. Georgia Power has already drawn down $1 billion as an initial borrowing. The terms include a long maturity date of 2044, with principal payments starting in 2020 and interest rates tied to Treasury rates plus a spread. This arrangement aims to secure necessary financing for the ambitious Vogtle expansion project.
Key Highlights
- 1Georgia Power finalized loan guarantee agreements with the U.S. DOE and FFB for Plant Vogtle Units 3 and 4 construction.
- 2A new multi-advance term loan facility of up to approximately $3.46 billion has been established, backed by a DOE loan guarantee.
- 3Georgia Power made an initial borrowing of $1 billion under this facility on February 20, 2014.
- 4Proceeds will reimburse Georgia Power for a portion of eligible construction costs for Plant Vogtle Units 3 and 4.
- 5The loan facility matures in 2044, with principal repayments commencing in 2020.
- 6Interest rates are variable, linked to applicable Treasury rates plus a 0.375% spread.
- 7Georgia Power's reimbursement obligations are secured by its ownership interest in Plant Vogtle Units 3 and 4 and related contracts.