Georgia has fired up its second new nuclear reactor, but the celebration is tempered with a fiscal hangover. The reactor, part of the Plant Vogtle nuclear facility and one of two recent additions southeast of Augusta, began splitting atoms to generate carbon-free electricity, adding to the existing two reactors. According to WABE, this move marks the end of a project that spiraled billions over budget and years behind schedule.
Georgia Power and its co-owners triumphantly announced on Monday that Vogtle's Unit 4 was now commercially operational. However, the final tab for these new reactors isn't for faint of heart: currently projected at $31 billion, they've vastly exceeded the initial $14 billion estimate and missed their 2017 completion date by a country mile. Together with a $3.7 billion settlement paid by original contractor Westinghouse, the total cost of this venture hovers near an eye-watering $35 billion, as calculations by WABE reveal.
The new units are expected to make Georgia's electrical grid more reliable while assisting the state in achieving its goal of zero carbon emissions by 2050, according to Chris Womack, CEO of Southern Co., which owns Georgia Power. "These new Vogtle units not only will support the economy within our communities now and in the future, they demonstrate our global nuclear leadership," Womack said in a statement obtained by WABE. Each reactor is capable of powering half a million homes and businesses without releasing any carbon emissions.
Despite the exorbitant costs, even critics concede that meeting carbon-free electricity goals may be impossible without nuclear power. Georgia Power is charting plans to build additional fossil fuel generation in the coming years to meet spiking demand, epitomized by the growth of computer data centers. According to WABE, Vogtle's electricity is still set to cost more than were other sources been chosen, despite federal loan guarantees intended to smooth the financial burden.
Liz Coyle, executive director of consumer group Georgia Watch, told WABE, "Hopefully, despite being seven years late and billions over budget, the two new units at Plant Vogtle will finally perform well for at least the next 80 years to justify the excessive cost." Meanwhile, most electric customers in Georgia will feel the pinch in their wallets, with a 6% rate increase approved in December to cover Vogtle's remaining costs. And come May, that could mean around an additional $9 a month for the typical residential customer—that's on top of a previous $5.42 hike when Unit 3 roared to life.
While the high costs of Vogtle could give pause to other utilities considering nuclear energy, the market abroad seems more favorable. Westinghouse is selling its reactor design to countries like China, which plans to build more using the same specs, while nations like Bulgaria, Poland, and Ukraine are also intent on erecting nuclear power stations with the American company's blueprint.
