In a series of cases before the Georgia Public Service Commission (PSC) to monitor the cost of constructing two new nuclear units at Plant Vogtle, Georgia Watch is working to protect consumers. A legal dispute between Georgia Power and its Plant Vogtle contractors over cost overruns from project design issues and schedule delays could end up costing Georgia Power ratepayers $400 million or more! In a brief filed at the Commission on August 3, 2012, Georgia Watch once again called on Commissioners to approve a risk sharing mechanism as a means of protecting ratepayers.
Currently, the entire cost of overruns is unfairly borne by ratepayers alone. Southern Company shareholders, who own Georgia Power, have no skin in the game! Through a risk-sharing mechanism, the Company’s investors and ratepayers would equitably share in any cost overruns incurred related to Georgia Power’s $6.1 billion ownership interest in the project. Such a mechanism clearly would provide Georgia Power with a strong incentive to manage the project efficiently in order to keep costs down.