Summary
Southern Company (SO) disclosed in an 8-K filing on January 11, 2023, that its subsidiary, Georgia Power, has identified vibrations in the cooling system piping during the start-up testing of Plant Vogtle Unit 3. While remediation is underway, Southern Nuclear Operating Company expects to file for a license amendment with the NRC to expedite this process. Consequently, the projected in-service date for Unit 3 has been pushed to April 2023, with initial criticality now expected in February 2023. This delay is anticipated to incur additional capital costs for Georgia Power of up to $15 million pre-tax per month, along with associated allowance for funds used during construction and other related expenses. The company notes that the project's schedule and costs remain subject to various risks, including potential equipment failures, contractor and labor management issues, and challenges associated with new technology. Further updates are expected in Southern Company's February 2023 earnings call.
Key Highlights
- 1Plant Vogtle Unit 3 experienced piping vibrations in the cooling system during pre-operational testing, leading to a revised in-service date.
- 2The projected in-service date for Unit 3 is now April 2023, with initial criticality expected in February 2023.
- 3The delay is estimated to add up to $15 million pre-tax per month in additional capital costs for Georgia Power.
- 4Southern Nuclear will file a license amendment request with the NRC to expedite the remediation process.
- 5Projected schedule and costs are subject to ongoing risks including equipment failures, contractor performance, labor availability, and challenges with new technology.
- 6Management acknowledges that further schedule delays and cost increases are possible.