Southern Company's subsidiary Georgia Power has signed a new agreement with Japan’s Toshiba for the receipt of an $3.68bn contribution to help expand the Vogtle nuclear power plant in the US.
The fund will be offered in instalments from October 2017 to January 2021. It will be used to build two new units of the plant.
Toshiba made the commitment after Georgia Power took over the Vogtle plant project from its unit Westinghouse, which filed for bankruptcy in March this year. The Vogtle project is now jointly-owned by Georgia Power, Oglethorpe Power, MEAG Power, and Dalton Utilities.
Georgia Power's chairman, president, and chief executive officer (CEO) Paul Bowers said: “We are continuing to work with the project's Co-owners to complete our full-scale schedule and cost-to-complete analysis and will work with the Georgia Public Service Commission to determine the best path forward for our customers.”
In addition, Georgia Power has finalised a new agreement with Westinghouse for the transition of the project management of the Vogtle expansion from Westinghouse to Southern Nuclear and Georgia Power.
The agreement is subject to approval of the Westinghouse board of directors and certain other conditions, including bankruptcy court approval.
The scope of the service agreement covers engineering, procurement, and licensing support, as well as access to Westinghouse intellectual property required for the Vogtle project.
Furthermore, interim assessment agreements have allowed progress to continue on the construction site. They have been extended through 22 June this year.