8-KOther Events

SOUTHERN CO 8-K Report, Corporate Update (Jul 21, 2017)

Filed July 21, 2017For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This 8-K filing by Southern Company (SO) primarily concerns the ongoing developments related to the construction of Plant Vogtle Units 3 and 4, specifically addressing the bankruptcy filing of the EPC Contractor, Westinghouse Electric Company LLC and WECTEC Global Project Services Inc. (collectively, the "EPC Contractor"). The filing details Georgia Power's actions, on behalf of itself and other Vogtle Owners, in navigating this situation. Key events include the entry into an Interim Assessment Agreement and an amended Services Agreement, both aimed at continuing project progress amidst the contractor's Chapter 11 bankruptcy protection. Investors should note that the original Vogtle 3 and 4 Agreement with the EPC Contractor has been rejected by the bankruptcy court, contingent upon the effectiveness of the new Services Agreement, which still requires approval from the U.S. Department of Energy (DOE). The company emphasizes that the ultimate outcome of these matters remains uncertain. The extension of the Interim Assessment Agreement provides a short-term bridge to allow for DOE approval, highlighting the critical nature of this next step for project continuity and financial predictability.

Key Highlights

  • 1Westinghouse Electric Company LLC and WECTEC Global Project Services Inc. (EPC Contractor) have filed for Chapter 11 bankruptcy protection.
  • 2Georgia Power, acting as agent for the Vogtle Owners, has entered into an Interim Assessment Agreement with the EPC Contractor and WECTEC Staffing.
  • 3A Services Agreement has been entered into, which the bankruptcy court has approved for rejection of the original Vogtle 3 and 4 Agreement upon its effectiveness.
  • 4The effectiveness of the Services Agreement is contingent on approval by the U.S. Department of Energy (DOE).
  • 5The Interim Assessment Agreement's term has been extended to July 27, 2017, or until the Services Agreement becomes effective, to allow time for DOE approval.
  • 6The ultimate outcome of these matters concerning Plant Vogtle Units 3 and 4 is currently undetermined.

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