Reiko A. Kerr, Senior Vice President, Finance and Administration, and Chief Financial Officer
MEAG Power
MEAG Power
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ATLANTA – April 29, 2024 – MEAG Power is pleased to announce that Unit 4 at Plant Vogtle entered commercial operation today. Unit 4 adds 250 MW of emissions-free generation capacity to MEAG Power’s portfolio. Together with Vogtle Unit 3, which entered commercial operation on July 31, 2023, MEAG Power has added 500 MW of clean energy to its portfolio, an equivalent amount to power an estimated 227,000 homes and businesses.
“Vogtle Units 3 & 4 will provide reliable, clean, safe and affordable baseload power to our Participant communities for the next 60 to 80 years,” said MEAG Power President & CEO Jim Fuller. “Building the first advanced nuclear reactors in the U.S. is a historic achievement for Georgia, and reflects the hard work and unwavering dedication of everyone who worked on-site and off, including MEAG Power’s Board members, our Participant communities, and project partners PowerSouth Energy Cooperative and JEA.”
“The Plant Vogtle expansion was a highly complex undertaking,” Fuller continued. “Throughout the entire process our priority has been serving the best interests of our Participant communities. Vogtle Units 3 & 4 will be a key component in satisfying the growing energy needs of their citizens and businesses for decades to come.”
With its four units combined, Plant Vogtle is now the largest generator of clean energy in the nation, expected to produce more than 30 million MW hours of electricity each year. Vogtle Unit 4 was declared available for reliable dispatch by Southern Nuclear, which will operate the new units for the Vogtle co-owners: MEAG Power, Georgia Power, Oglethorpe Power and Dalton Utilities.
About MEAG Power
The Municipal Electric Authority of Georgia (MEAG Power) is a nonprofit, statewide generation and transmission organization created by the Georgia General Assembly in 1975. MEAG Power provides reliable, competitive wholesale electricity to its 49 member communities (Participants), who own their local distribution systems, through take-or-pay contracts. The organization also monitors and advocates on energy issues at the state and federal levels on behalf of its Participants. Recognized as one of the leading joint action agencies in the country, MEAG Power is among the top public power companies nationwide in terms of annual net generation, megawatt-hour sales and electric revenue. Its diverse, clean energy portfolio – delivering, on average, 66% emissions-free energy since 2016 – compares favorably with both the state and national averages.
Media Contact:
Andy Mus
Communications Manager
amus@meagpower.org
770.563.0336
We are very pleased to share with you that fuel load into the Unit 4 reactor core has begun at Plant Vogtle. The fuel load process marks a crucial milestone toward startup and commercial operation of Unit 4.
During fuel load, nuclear technicians and operators from Westinghouse and Southern Nuclear are scheduled to safely transfer 157 fuel assemblies one-by-one from the Unit 4 spent fuel pool to the Unit 4 reactor core over the coming days.
Startup testing will begin next and is designed to demonstrate the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor. Operators will also bring the plant from cold shutdown to initial criticality, synchronize the unit to the electric grid and systematically raise power to 100%.
This testing -- the same process Unit 3 went through starting late last year -- takes a number of weeks, leading to commercial operation. Vogtle Unit 4 is projected to enter service by the first quarter of 2024.
The Unit 4 fuel load milestone follows Unit 3 entering commercial operation just over two weeks ago, on July 31, becoming the first newly constructed nuclear unit to enter service in the U.S. in more than 30 years.
As always, we will keep you updated on the continued progress toward commercial operation of Vogtle Units 4.
If you have any questions, please feel to reach out to your Regional Manager, Steve Jackson (770-563-0314) or me (770-563-0522).
MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Corporate Communications Manager: jmarsh@meagpower.org
ATLANTA – July 31, 2023 – MEAG Power is pleased to announce that Unit 3 at Plant Vogtle entered commercial service today, adding 250 MW of emissions-free generation capacity to MEAG Power’s portfolio, an equivalent amount to power an estimated 113,500 homes and businesses. Vogtle Unit 3 is the first newly constructed nuclear unit to enter service in the U.S. in more than 30 years.
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Vogtle Unit 3 has safely reached 100 percent power, marking a major milestone towards commercial operation and service for customers. This milestone marks the maximum energy the unit is licensed to produce in the reactor core and is the first time the unit has reached its expected output of approximately 1,100 electric MW, which can power an estimated 500,000 homes and businesses.
In alignment with the testing performed throughout power ascension, testing at the 100 percent power level is focused on the operation of the reactor, plant control systems for the reactor and support systems, and integrated plant operations. Plant performance is monitored at various conditions and data is gathered and evaluated by site engineers. With the unit reaching full power for the first time, other tests must be performed at this power level before the unit is available for reliable dispatch in accordance with its combined operating license.
Once all startup testing is successfully completed and the unit is available for reliable dispatch, Vogtle Unit 3 will enter commercial operation. Unit 3 is projected to be placed in service during June 2023.
The generator at Vogtle Unit 3 has generated electricity for the first time, and the unit has successfully synchronized and connected to the electric grid. Meanwhile, at Vogtle Unit 4, nuclear operators began hot functional testing last month. Both achievements represent significant steps toward operations.
Connecting to the electric grid is part of ongoing startup testing for Vogtle Unit 3, and operators will continue to raise reactor power for electricity generation while performing tests at various power levels. This Unit 3 milestone follows initial criticality, reached on March 6, when operators safely started the nuclear reaction inside the reactor, generating nuclear heat to produce steam. Once all startup testing is successfully completed and the unit is available for reliable dispatch, the unit will enter commercial operation.
The in-service date for Unit 3 is projected during May or June 2023. Vogtle Unit 4 is projected to enter service in late fourth quarter 2023 or first quarter 2024.
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Vogtle Unit 3 has safely reached initial criticality. Initial criticality is a key step during the startup testing sequence and demonstrates that -- for the first time -- operators have safely started the nuclear reaction inside the reactor. This means atoms are being split and nuclear heat is being made, which will be used to produce steam.
A reactor achieves criticality when the nuclear fission reaction becomes self-sustaining. Achieving initial criticality is necessary to continue the startup of the Unit in order to generate sufficient heat for the production of electricity.
Vogtle Unit 3 continues with startup testing which demonstrates the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor. Now that the Unit 3 reactor has reached criticality, operators will continue to raise power to support synchronizing the generator to the electric grid and begin producing electricity. Then, operators will continue increasing power through multiple steps, ultimately raising power to 100 percent. These tests are designed to ensure all systems are operating together and to validate operating procedures prior to declaration of Commercial Operation. The in-service date for Unit 3 is projected during May or June 2023.
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Fuel load into the Vogtle Unit 3 reactor core has begun at Plant Vogtle. The fuel load process marks a historic and pivotal milestone toward startup and commercial operation of the first new nuclear units to be built in the U.S. in more than three decades.
The start of Unit 3 fuel load comes after Southern Nuclear received a historic 103(g) finding from the Nuclear Regulatory Commission (NRC) in August which signified that the new unit has been constructed and will be operated in conformance with the Combined License and NRC regulations.
During fuel load, nuclear technicians and operators from Westinghouse and Southern Nuclear are scheduled to safely transfer 157 fuel assemblies one-by-one from the Unit 3 spent fuel pool to the Unit 3 reactor core in the coming days.
Startup testing will begin next and is designed to demonstrate the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor. Operators will also bring the plant from cold shutdown to initial criticality, synchronize the unit to the electric grid and systematically raise power to 100%. Vogtle Unit 3 is projected to enter service in the first quarter of 2023.
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On September 29, 2022, Georgia Power Company ( “Georgia Power”) reached an agreement (the “Settlement”) with the Municipal Electric Authority of Georgia and certain of its subsidiaries (collectively, “MEAG Power”) to resolve its dispute with
MEAG Power regarding the proper interpretation of the cost-sharing and tender provisions of the joint ownership agreements relating to Plant Vogtle Units 3 and 4 (the “Vogtle Joint Ownership Agreements”).
Under the terms of the Settlement, among other items, (i) MEAG Power will not exercise the tender option and will retain its full ownership interest in Plant Vogtle Units 3 and 4, (ii) Georgia Power will pay a portion of MEAG Power’s costs of construction for Plant Vogtle Units 3 and 4 as such costs are incurred and with no further adjustment for force majeure costs, which payments will be in an aggregate amount of approximately $76 million based on the current project capital cost forecast, and (iii) Georgia Power will pay 20% of MEAG Power’s costs of construction with respect to any amounts above the current project capital cost forecast, with no further adjustment for force majeure costs.
In addition, MEAG Power and Georgia Power agreed to dismiss the pending litigation described above, including Georgia Power’s counterclaims.
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MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Corporate Communications Manager: jmarsh@meagpower.org
ATLANTA – June 21, 2022 – On June 18, 2022, the Municipal Electric Authority of Georgia (MEAG Power) and its wholly owned subsidiaries, MEAG Power SPVJ, LLC, MEAG Power SPVM, LLC and MEAG Power SPVP, LLC (Vogtle Units 3&4 Project Entities), filed suit in the Superior Court of Fulton County, Georgia, against Georgia Power Company (GPC) in connection with a disagreement regarding an increase in GPC’s construction cost responsibility under the Plant Alvin W. Vogtle Units 3 and 4 (Vogtle Units 3&4) ownership arrangements and the right of each of the Vogtle Units 3&4 Project Entities to tender a portion of its ownership interest in the project.
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MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Corporate Communications Manager: jmarsh@meagpower.org
ATLANTA – May 20, 2022 – MEAG Power announced today that Reiko Kerr has been named senior vice president and chief financial officer, filling the vacancy resulting from Edward Easterlin’s recent retirement. Kerr joins MEAG Power from the Los Angeles Department of Water and Power (LADWP), where she was senior assistant general manager of the nation’s largest municipal utility. She will join MEAG Power effective July 18.
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Vogtle Unit 3 plant systems have successfully reached normal operating pressure and temperature during hot functional testing. Over the next several weeks, plant systems will continue to be tested at normal operating pressure and temperature.
Hot functional testing started on April 25 and marks the last series of major tests for the new nuclear unit ahead of fuel load. The testing represents a significant step towards operations and providing customers with a reliable, carbon-free energy source for the next 60 to 80 years.
Hot functional testing is conducted to verify the successful operation of reactor components and systems together and confirm the reactor is ready for fuel load. As part of the testing, the site team is currently running Unit 3 plant systems at normal operating pressure and temperature without nuclear fuel.
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New York, June 21, 2021 -- Moody's Investors Service has assigned an A2 rating to the Municipal Electric Authority of Georgia's (MEAG Power) planned issuance of approximately $70 million of Plant Vogtle Units 3&4 Project M Bonds, Series 2021A. The bonds are expected to be issued in July 2021, but the actual amount of issuance could change subject to market conditions. The Series 2021A bonds will rank pari passu with about $1.43 billion of MEAG Power's other Project M revenue bonds which are also rated A2 and $687 million of DOE Guaranteed Loans outstanding at May 31, 2021. The rating outlook is stable.
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New York, June 21, 2021 -- Moody's Investors Service has assigned a Baa1 rating to the Municipal Electric Authority of Georgia's (MEAG Power) planned issuance of approximately $135 million of Plant Vogtle Units 3&4 Project J Bonds, Series 2021A. The bonds are expected to be issued in July 2021, but the actual amount of issuance could change subject to market conditions. The Series 2021A bonds will rank pari passu with about $1.95 billion of MEAG Power's other Project J revenue bonds which are also rated Baa1 and about $672 million of DOE Guaranteed Loans outstanding at May 31, 2021. The outlook is positive.
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New York, June 21, 2021 -- Moody's Investors Service has assigned a Baa2 rating to the Municipal Electric Authority of Georgia's (MEAG Power) planned issuance of approximately $55 million of Plant Vogtle Units 3&4 Project P Bonds, Series 2021A. The bonds are expected to be issued in July 2021, but the actual amount of issuance could change subject to market conditions. The Series 2021A bonds will rank pari passu with about $710.5 million of MEAG Power's other Project P revenue bonds which are also rated Baa2 and about $815.6 million of DOE Guaranteed Loans outstanding at May 31, 2021. The outlook is stable.
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Plant equipment for Vogtle Unit 4 is now energized, or permanently powered, which is needed to perform all subsequent testing for the unit at the Vogtle 3 & 4 nuclear expansion project.
With plant equipment previously running on temporary construction power, the achievement of initial energization marks another step toward system operations as Unit 4 continues to progress through its testing phase.
Earlier this year, the project team started the integrated flush testing process on Unit 4, which pushes water through the permanent plant system piping that feeds into the reactor vessel and reactor coolant loops. Integrated flush represents a critical step as the process is key to helping ensure the safe startup of Unit 4 and initiated the start of extensive testing ahead for the unit's systems.
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All modules for the Plant Vogtle units 3 & 4 nuclear expansion project have now been set, as a massive water tank has been lifted into place atop the Unit 4 containment vessel and shield building roof. The placement also represents the last major crane lift at the project site.
The Passive Containment Cooling Water Storage Tank, known as CB-20, is a major part of the AP1000 reactor's advanced passive safety system. Standing 35 feet tall and weighing more than 720,000 pounds, the large component will hold approximately 750,000 gallons of water ready to flow down in the unlikely event of an emergency to help cool the reactor. The water can also be directed into the used fuel pool, while the tank itself can be refilled from water stored elsewhere on site.
The AP1000 plant's passive safety systems require no operator actions to mitigate potential emergency situations. These systems use only natural forces such as gravity, natural circulation and compressed gas to achieve their safety function. No pumps, fans, diesels, chillers or other active machinery are used, except for a few simple valves that automatically align and actuate the passive safety systems.
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Hot functional testing has begun for Vogtle Unit 3. Hot functional testing marks the last series of major tests underway for the new nuclear unit ahead of initial fuel load. The testing represents a significant step towards operations and providing customers with a reliable, carbon-free energy source for the next 60 to 80 years.
Hot functional testing is conducted to verify the successful operation of reactor components and systems together and confirm the reactor is ready for fuel load. As part of the testing, the site team will begin running Unit 3 plant systems without nuclear fuel and advance through the testing process towards reaching normal operating pressure and temperature.
Over the next several weeks, nuclear operators will use the heat generated by the unit’s four reactor coolant pumps to raise the temperature and pressure of plant systems to normal operating levels. Once normal operating temperature and pressure levels are achieved and sustained, the unit’s main turbine will be raised to normal operating speed using steam from the plant. During these series of tests, nuclear operators will be able to exercise and validate procedures as required ahead of fuel load. Hot functional testing is expected to take six to eight weeks.
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Plant Vogtle Unit 4 has begun integrated flush, the testing process that pushes water through the permanent plant system piping that feeds into the reactor vessel and reactor coolant loops. This is the latest in a number of significant milestones recently achieved at the Vogtle nuclear expansion project and marks another step towards operations and providing customers with a clean, carbon-free energy source.
Last month the project received the historic first nuclear fuel shipment for Vogtle Unit 3, placed the two-million-pound roof of the Vogtle Unit 4 shield building and completed the pre-operational condenser vacuum test of the Vogtle Unit 3 turbine system in preparation for hot functional testing.
Integrated flush represents a critical step as the process is key to helping ensure the safe startup of Unit 4 and marks the start of extensive testing ahead for the unit's systems. Over the next few months, site personnel at the Vogtle nuclear expansion project will work through this process to clean and test the system piping ahead of testing of Unit 4.
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Georgia Power today announced the completion of the pre-operational condenser vacuum test of the Vogtle Unit 3 turbine system. The milestone marks another step for the Vogtle 3 & 4 nuclear expansion project toward operations and providing customers with a clean, carbon-free energy source for the next 60 to 80 years.
The test was conducted with the main turbine on turning gear and by operating supporting systems to establish the condenser vacuum, which is necessary to demonstrate the steam supply and water-cooling systems operate together and are ready to support hot functional testing and initial fuel load in the reactor.
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The two-million-pound roof of the Vogtle Unit 4 shield building has been set into place at the Plant Vogtle nuclear expansion project near Waynesboro, Georgia. With this placement, there is now one last major crane lift remaining for Vogtle Unit 4, the CB-20 module, which is part of the AP1000 reactor’s advanced passive safety system. The Vogtle Unit 4 shield building roof placement comes just days after the receipt of the first nuclear fuel shipment for Vogtle Unit 3, representing the first nuclear fuel shipment for the AP1000 reactor in the U.S.
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Plant Vogtle Unit 3 has received its first nuclear fuel shipment, representing the first nuclear fuel shipment for this newly-designed AP1000 reactor in the U.S. The milestone marks a major step for the Vogtle 3 & 4 nuclear expansion project towards operations and providing customers with a carbon-free energy source that is expected to put downward pressure on rates for decades to come.
In order to receive nuclear fuel, construction of specific areas of Unit 3 had to be completed and inspected, ensuring critical infrastructure, such as the fuel vault and spent fuel pool, meet construction quality and design requirements. With site construction turning over the fuel handling area of Vogtle Unit 3 to operations, the Vogtle 3 & 4 site implemented specific and comprehensive policies, procedures and security measures to safely receive, handle and store the nuclear fuel.
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New York, November 06, 2020 -- Moody's Investors Service, ("Moody's"), has assigned an A1 rating to the Municipal Electric Authority of Georgia's (MEAG) planned issuance of approximately $84.9 million of Combined Cycle Project Revenue Bonds, Series 2020A. The rating outlook is stable.
The bonds are expected to be issued during November 2020; the amount of bonds issued could change subject to market conditions. The Series 2020A bonds will pari passu with about $107 million of MEAG Combined Cycle Revenue bonds outstanding at October 30, 2020, also rated A1.
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Fitch Ratings has assigned a 'BBB+' rating to the following bonds issued by the Municipal Electric Authority of Georgia (MEAG Power):
-- Approximately $95 million combined cycle revenue bonds, series 2020A.
Bond proceeds will be used to refinance existing debt and interim borrowings and pay costs of issuance. Bonds are expected toprice the week of Nov. 16, 2020 via negotiated sale.
Fitch also affirms the 'BBB+' rating on the following outstanding bonds:
--$86.3 million combined cycle revenue bonds, series 2010A (amount pre-refunding);
--$36.3 million combined cycle revenue bonds, series 2012A.
The Rating Outlook has been revised to Positive from Stable.
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S&P Global Ratings assigned its 'A-' rating to the Municipal Electric Authority of Georgia's (MEAG Power) $84.92 million combined cycle project revenue bonds series 2020A. The outlook is negative. Management will use bond proceeds to refund MEAG Power's s series 2010A combined cycle bonds and interim borrowings under a credit agreement.
As of Aug. 31, 2020, MEAG Power had $141 million of combined-cycle debt outstanding, about $1.6 billion of Project One debt ($364 million senior lien, and $1.2 billion subordinate lien), and $401 million of general resolution projects debt outstanding (including senior, subordinate, unsecured, and lines of credit). As of Aug. 31, 2020, MEAG Power also had $5.95 billion (including $1.8 billion of DOE loans) of debt attributable to the Vogtle units 3 and 4 project.
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MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Communications Manager: jmarsh@meagpower.org; 770-563-0326
MEAG Power announced today that, subject to satisfactory market conditions, it anticipates coming to market with the refunding of certain of its Combined Cycle Project debt before the end of this year to achieve debt service savings. Wells Fargo Bank, N.A., will serve as lead book runner for the transaction.
MEAG Power regularly explores financing and refinancing opportunities to achieve debt service and related savings for itself and its Participants.
About MEAG Power
The Municipal Electric Authority of Georgia (MEAG Power) is a nonprofit, statewide generation and transmission organization. Recognized as one of the leading joint action agencies in the country, MEAG Power is among the top public power companies nationwide in terms of annual net generation, megawatt-hour sales and electric revenue. Its diverse, clean energy portfolio – delivering 67% emissions-free energy in 2019 – compares favorably with both the state and national averages. Created by the Georgia General Assembly in 1975, MEAG Power provides reliable, competitive wholesale electricity to its 49 member communities (Participants), who own and operate their local electric distribution systems. MEAG Power also monitors and advocates on energy issues at the state and federal levels on behalf of its Participants.
Moody's Investors Service has upgraded Municipal Electric Authority of Georgia's Plant Vogtle Units 3&4 Project J (MEAG Project J) $2.0 billion outstanding senior revenue bonds' rating to Baa1 from Baa2. The rating outlook is revised to positive from rating under review, with such review concluded after commencing on August 10, 2020.
Today's rating action considers the credit quality of JEA, FL - Electric Enterprise (JEA: A2 Positive) along with the final terms of the settlement agreement between Municipal Electric Authority of Georgia (MEAG Power) and JEA which are viewed as credit positive to MEAG Project J. The settlement agreement which was reached on July 30th and executed on August 13th resolved all disputed issues relating to the new Units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant ("Plant Vogtle"), and the Amended & Restated Power Purchase Agreement (PPA) dated as of December 31, 2014 (the Project J PPA) including additional compensation obligation to MEAG Power from JEA, while also giving JEA a right of first refusal, subject to the rights granted to the Project J Participants in their Power Sales Contracts, to purchase any entitlement share of a Project J participant in the 21st year following commercial operation (COD) of the Vogtle Units 3&4.
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Georgia Power today announced in a filing with the Georgia Public Service Commission (PSC) that the target in-service dates for the Vogtle nuclear expansion project remain November 2021 for Unit 3 and November 2022 for Unit 4. The company also reported the project is now approximately 87% complete, as significant progress continues to be made at the site.
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Moody's Investors Service ("Moody's") has upgraded Municipal Electric Authority of Georgia's Plant Vogtle Units 3&4 Project J $2.0 billion outstanding senior revenue bonds' rating to Baa2 from Baa3. Concurrent with the upgrade, Moody's placed the ratings on review for further upgrade.
Today's rating action was prompted by the announced settlement agreement on July 30th among Municipal Electric Authority of Georgia (MEAG Power), JEA, FL - Electric Enterprise (JEA: A2 Positive), and the City of Jacksonville that is intended to resolve all disputed issues relating to Units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant ("Plant Vogtle"), and the Amended & Restated Power Purchase Agreement dated as of December 31, 2014 (the Project J PPA).
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MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Communications Manager: jmarsh@meagpower.org; 770-563-0326
JEA, Northeast Florida’s community-owned electric provider, the City of Jacksonville, and the Municipal Electric Authority of Georgia (MEAG Power) have announced a settlement of all disputed issues relating to the new Units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant (“Plant Vogtle”), and the Amended & Restated Power Purchase Agreement dated as of December 31, 2014 (the “Project J PPA”).
The JEA Board, the City of Jacksonville and the MEAG Power Board all have approved the settlement.
Terms of the settlement include JEA and the City of Jacksonville dismissing their civil action against MEAG Power currently pending in U.S. District Court, and MEAG Power dismissing its lawsuits against JEA currently pending in U.S. District Court and the U.S. Court of Appeals. Further, JEA, the City of Jacksonville and MEAG Power agree to accept without challenge or appeal the Order entered by U.S. District Judge Mark Cohen dated June 17, 2020, including without limitation his determination that the JEA PPA is Valid and Enforceable. Terms also include certain provisions that will create additional future value to both JEA and MEAG Power.
“We are pleased to have reached a settlement with JEA and the City of Jacksonville to put this matter behind us,” said James E. Fuller, MEAG Power President & Chief Executive Officer. “We believe this settlement is the best outcome for all involved, and we look forward to a mutually beneficial relationship that helps MEAG Power and JEA deliver cost-effective, emissions-free power to our respective customers in the coming decades.”
“We likewise are pleased to have reached this settlement with MEAG Power and look forward to Vogtle Units 3 and 4 coming online in the near future,” said Paul McElroy, JEA Interim Managing Director and Chief Executive Officer. “The reliable, emissions-free power from Plant Vogtle will help JEA continue to serve our Jacksonville-area customers with ever-cleaner power into the future.”
Plant Vogtle Units 3 & 4 consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga. MEAG Power’s co-owners in the Vogtle expansion project are Georgia Power (45.7 percent), Oglethorpe Power (30.0 percent) and Dalton Utilities (1.6 percent).
About MEAG Power
The Municipal Electric Authority of Georgia (MEAG Power) is a nonprofit, statewide generation and transmission organization. Recognized as one of the leading joint action agencies in the country, MEAG Power is among the top public power companies nationwide in terms of annual net generation, megawatt-hour sales and electric revenue. Its diverse, clean energy portfolio – delivering 67% emissions-free energy in 2019 – compares favorably with both the state and national averages. Created by the Georgia General Assembly in 1975, MEAG Power provides reliable, competitive wholesale electricity to its 49 member communities (Participants), who own their local distribution systems, through take-or-pay contracts. MEAG Power also monitors and advocates on energy issues at the state and federal levels on behalf of its Participants.
Moody's Investors Service has affirmed the Baa3 rating for Municipal Electric Authority of Georgia's (MEAG Power) Plant Vogtle Units 3&4 Project J Bonds, affecting approximately $1.97 billion of outstanding rated debt. Concurrent with the rating affirmation, Moody's has changed the outlook for MEAG Power Project J Bonds to positive from negative.
RATINGS RATIONALE
The rating affirmation and revision of the outlook to positive from negative primarily reflects the significance of the June 17, 2020 federal court ruling by a U.S. District Court judge regarding the validity of the power purchase agreement (PPA) between MEAG Power and JEA, FL - Electric Enterprise (JEA: A2 negative). The court order declared that the PPA between MEAG Power and JEA is valid and enforceable, strengthening the security pledge for the Project J bonds. Moreover, this judicial decision solidifies the legal framework under which JEA is required to make payments to MEAG Power for the first 20 years of the Project J bonds.
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Fitch Ratings has removed the Rating Watch Negative on approximately $2.0 billion of Municipal Electric Authority of Georgia's (MEAG Power) Project J bonds following the U.S. District Court's decision that the power purchase agreement (PPA) governing Vogtle project-related payments between JEA and MEAG Power is valid and enforceable. The 'BBB+' rating is affirmed and the Rating Outlook is Negative, reflecting the potential for further weakening in the rating if significant additional cost increases or timing delays occur at the project.
Fitch's rating on the Project J bonds relies explicitly on the PPA with JEA, as well as Fitch's view that the PPA is valid, legal and binding. While the court's decision is subject to appeal upon the completion of remaining monetary relief claims, the legal decision is sufficient support to remove the Rating Watch Negative designation on the bond ratings.
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MEAG POWER PRESS RELEASE
Media Contact: John Marsh, Communications Manager: jmarsh@meagpower.org; 770-563-0326
U.S. District Judge Mark Cohen granted yesterday MEAG Power’s Motion for Judgment on the Pleadings, specifically declaring in bold print that the power purchase agreement (PPA) between JEA – the electric provider for the city of Jacksonville, Florida – and the Municipal Electric Authority of Georgia (MEAG Power) “is VALID AND ENFORCEABLE” and that “the PPA unconditionally requires JEA to pay MEAG for capacity and energy at the full cost of production of Project J, including debt service on the bonds and DOE-guaranteed loans”. The ruling confirms the merits of MEAG Power’s position on this matter while avoiding a prolonged and costly trial.
Under the terms of the PPA, which was signed in 2008, and amended and restated in 2014, JEA committed to purchase all of the energy generated by the new units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant (“Plant Vogtle”), as part of Project J, during their first 20 years of operation, as well as to pay for approximately 41 percent of MEAG Power’s share of the construction cost for the new units during those 20 years. JEA also attested to the validity of the PPA in three separate court validation proceedings, fully understanding that the financial community would rely upon such representations in providing funds necessary to finance the Project.
Despite the foregoing, in late 2018, JEA and the City of Jacksonville launched a series of legal and regulatory maneuvers in an attempt to have that agreement invalidated. These included filing a lawsuit in state court in Florida, launching a failed attempt to seek intervention by the Federal Energy Regulatory Commission, and engaging in a costly, misleading public relations campaign against MEAG Power. To defend the agreement and protect the 49 Participant communities it serves, MEAG Power filed counterclaims, including a request to change jurisdiction to the U.S. District Court for the Northern District of Georgia, where the dispute has now been decided in MEAG Power’s favor.
“From the beginning, we have simply argued that the PPA is valid and fully enforceable, and that the suit brought by JEA and the City of Jacksonville was meritless,” said MEAG Power President and Chief Executive Officer James E. Fuller. “Judge Cohen’s ruling was very thorough and perfectly clear – JEA and the City of Jacksonville knew what they were doing when they entered into this agreement, and they have to honor their commitment.”
In their lawsuit, the City and JEA leveled a lengthy series of claims regarding the legality of the agreement. In his 53-page order, Judge Cohen rejected each of these claims in turn.
“We look forward to Vogtle units 3 and 4 coming into service as planned in 2021 and 2022, respectively,” Fuller said. “We will continue to honor all of our commitments, as we always have, and are hopeful that this ruling puts this matter behind us.”
Plant Vogtle Units 3 & 4 consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga. MEAG Power’s co-owners in the Vogtle expansion project are Georgia Power (45.7 percent), Oglethorpe Power (30.0 percent) and Dalton Utilities (1.6 percent).
About MEAG Power
The Municipal Electric Authority of Georgia (MEAG Power) is a nonprofit, statewide generation and transmission organization. Recognized as one of the leading joint action agencies in the country, MEAG Power is among the top public power companies nationwide in terms of annual net generation, megawatt-hour sales and electric revenue. Its diverse, clean energy portfolio – delivering 67% emissions-free energy in 2019 – compares favorably with both the state and national averages. Created by the Georgia General Assembly in 1975, MEAG Power provides reliable, competitive wholesale electricity to its 49 member communities (Participants), who own their local distribution systems, through take-or-pay contracts. MEAG Power also monitors and advocates on energy issues at the state and federal levels on behalf of its Participants.
The final module for Georgia Power's Vogtle Unit 3, a massive water tank, has been placed atop the containment vessel and shield building roof at the company's Vogtle 3 & 4 nuclear expansion project near Waynesboro, Georgia. The installation represents the final module placement for Unit 3, marking another significant milestone for the project.
The large module, known as CB-20, is a major part of the AP1000 reactor's advanced passive safety system. Standing 35 feet tall and weighing more than 720,000 pounds, the large component will hold approximately 750,000 gallons of water ready to flow down in the unlikely event of an emergency to help cool the reactor. The water can also be directed into the used fuel pool, while the tank itself can be refilled from water stored elsewhere on site.
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The Integrated Head Package (IHP) for Vogtle Unit 3 has been set into place atop the reactor vessel at Georgia Power’s nuclear expansion project near Waynesboro, Georgia, marking another significant milestone in the construction of the nation’s first new nuclear units in more than 30 years.
Standing 48 feet tall, weighing 475,000 pounds and containing more than three miles of electrical cables, the IHP is an integral component that will eventually be used by highly-trained nuclear operators to monitor and control the nuclear reaction that will occur inside the Unit 3 reactor vessel. Currently, these operators are monitoring and controlling the technology and equipment essential for testing the unit's systems and safely starting the plant.
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Open Vessel Testing, a major systems testing milestone, has been completed for Unit 3 at Georgia Power's Vogtle 3 & 4 nuclear expansion project near Waynesboro, Georgia, marking one of the most significant accomplishments in the project to date.
Open Vessel Testing has successfully demonstrated how water flows from the key safety systems into the reactor vessel ensuring the paths are not blocked or constricted. It also prepares Unit 3 for cold hydro testing and hot functional testing – both critical tests required ahead of initial fuel load. The milestone has confirmed that the pumps, motors, valves, pipes and other components of the systems function as designed.
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The final major lifts inside the containment vessels for Georgia Power’s Vogtle 3 & 4 project are now complete following the placement of the Unit 4 containment vessel top head earlier today.
The containment vessel is a high-integrity steel structure that houses critical plant components. The top head is 130 feet in diameter, 37 feet tall, and weighs nearly 1.5 million pounds, more than two fully-loaded jumbo jets. It’s comprised of 58 large plates, welded together, each more than an inch and a half thick.
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Georgia Power has ordered the first nuclear fuel load for Vogtle Unit 4, completing the initial fuel order needed to operate the first newly-designed reactors in the U.S. in 30 years. Fuel for Unit 3 was ordered last summer and completing the fuel order for Unit 4 marks another significant milestone at the Vogtle nuclear expansion near Waynesboro, Georgia.
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Workers at Georgia Power's Vogtle 3 & 4 project have completed the final concrete placement inside the Unit 3 containment vessel, which houses the unit's reactor. Completing this milestone is an important step that allows for the installation of machinery that will be used to load fuel into the unit.
Last year, the company announced it had ordered the first nuclear fuel load for Unit 3, the first nuclear fuel order to be placed in more than 30 years for a newly-designed reactor in the U.S. Consisting of 157 fuel assemblies with each measuring 14 feet tall, the fuel will eventually be loaded into the Unit 3 reactor vessel to support startup once the reactor begins operating.
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The main control room for Georgia Power’s Vogtle Unit 3 is now in operation and testing plant systems, marking another significant milestone at the Vogtle nuclear expansion near Waynesboro, Georgia. Staffing the main control rooms 24/7 year-round for both units 3 & 4 requires approximately 70 highly-trained nuclear operators.
From the main control room, operators will monitor and control the technology and equipment essential for testing the unit’s systems and safely starting the plant.
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Major systems testing is underway at Georgia Power’s Vogtle 3 & 4 nuclear expansion project near Waynesboro, Georgia, as the site continues to transition from construction toward system operations. The latest phase of testing, Open Vessel Testing, will demonstrate how water flows from the key safety systems into the reactor vessel ensuring the paths are not blocked or constricted.
Open Vessel Testing will also confirm that the pumps, motors, valves, pipes and other components of the systems function as designed. It follows the Integrated Flush process, which began in August, to push water through system piping and mechanical components that feed into the Unit 3 reactor vessel and reactor coolant loops for the first time. Integrated Flush will clean and remove any foreign material ahead of the initial startup of the unit.
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Workers at Georgia Power’s Vogtle 3 and 4 nuclear expansion near Waynesboro, Georgia, have achieved another major milestone as the process to push water through system piping and mechanical components that feed into the Unit 3 reactor vessel and reactor coolant loops for the first time has begun. Known as integrated flush, this process will clean and remove any foreign material ahead of the initial startup of Unit 3.
Recent milestones have included the placement of the containment vessel middle ring for Unit 4, and the placement of three low-pressure turbine rotors and the generator rotor inside the Unit 3 turbine building.
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Georgia Power has ordered the first nuclear fuel load for Vogtle Unit 3, the first nuclear fuel order to be placed in more than 30 years for a newly-designed reactor in the U.S. The fuel order marks another significant milestone at the Vogtle nuclear expansion near Waynesboro, Georgia.
Consisting of 157 fuel assemblies with each measuring 14 feet tall, the fuel will eventually be loaded into the Unit 3 reactor vessel to support startup once the reactor begins operating. After this initial fueling, approximately one third of the total fuel assemblies will be replaced during each refueling outage after the units begin operating, similar to the process used at existing Vogtle units 1 and 2.
For more information:
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
Today, MEAG Power announced the completion of a limited public debt offering, raising $619 million, which will fund SPVJ’s share of the anticipated completion costs related to the Vogtle Units 3 & 4 Project near Waynesboro, GA. SPVJ is a wholly-owned affiliate of MEAG Power. The output related to SPVJ’s ownership share is the subject of a 20-year power purchase agreement between MEAG Power, as seller, and JEA, as purchaser.
“We’re pleased to have reached this significant milestone in the financing of the plant expansion,” said Jim Fuller, MEAG Power’s President and CEO. “We concluded that a limited public offering would be an optimal means to access the capital markets both because of the availability of low-cost financing and because it would involve only sophisticated investors capable of accurately assessing the viability of the offering. We were particularly pleased that this offering was over-subscribed by the investment community, reflecting strong support for the financial viability of the Vogtle Project.” Fuller said.
Plant Vogtle Units 3 & 4 consist of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga. MEAG Power’s co-owners in the Vogtle expansion project are Georgia Power (45.7 percent), Oglethorpe Power (30.0 percent) and Dalton Utilities (1.6 percent).
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
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Several key milestones at the Vogtle nuclear expansion near Waynesboro, Georgia, have been completed recently, including the placement of the middle containment vessel ring for Unit 4. The containment ring is part of the structure that houses the reactor vessel.
Weighing more than a jumbo jet, the 2.4 million-pound, 51-foot tall containment vessel ring consists of dozens of individual steel plates and was fabricated on site. The middle ring is the second of three containment vessel rings to be set for Unit 4.
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Georgia Power announced today that plant equipment for Vogtle Unit 3 is now energized, or permanently powered, which is needed to perform all subsequent testing for the unit. With plant equipment previously running on temporary construction power, the completion of initial energization represents a significant milestone in the Vogtle expansion as the project moves from construction toward system operations.
Significant progress continues at the site, with the project now approximately 77 percent complete. With more than 7,000 workers currently onsite and more than 800 permanent jobs available once the units begin operating, Vogtle 3 & 4 is currently the largest jobs-producing construction project in the state of Georgia.
For more information:
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
Today, MEAG Power is proud to announce that it has closed on $414.7 million in additional loan guarantees from the U.S. Department of Energy. The funds will go toward MEAG Power’s share of the construction of nuclear Units 3 & 4 at Plant Vogtle near Waynesboro, Ga. MEAG Power owns 22.7 percent of the Vogtle project.
The announcement is made as Secretary of Energy Rick Perry visits the Plant Vogtle site as a demonstration of federal support for the project. Secretary Perry’s visit to close the loan guarantees for MEAG Power, Oglethorpe Power, and Georgia Power coincides with an important milestone in the construction of the project--placement of the top head of the containment structure for Vogtle Unit 3.
“This is an important day for the construction and financing of Vogtle Units 3 & 4,” said Jim Fuller, MEAG Power’s President & CEO. “We thank Secretary Perry for his presence at the site, and the commitment of the federal government in recognizing the value and importance of this project.”
MEAG Power Senior Vice President & CFO, Edward Easterlin added, “This additional loan guarantee translates to lower risk and cost savings for MEAG Power’s member communities and off-takers. It provides a great addition to the low-cost financing portfolio that we have worked diligently to achieve.”
Plant Vogtle Units 3 & 4 consist of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga. MEAG Power’s co-owners in the Vogtle expansion project are Georgia Power (45.7 percent), Oglethorpe Power (30.0 percent) and Dalton Utilities (1.6 percent).
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
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Contact: Paul J. Warfel Office: 770.661.2772 Email: PWarfel@meagpower.org
At its monthly meeting in Washington, D.C., today, the Federal Energy Regulatory Commission (FERC) voted, unanimously, to dismiss a request by the Jacksonville Electric Authority (JEA) to intervene in JEA’s ongoing dispute with MEAG Power over a long-standing Power Purchase Agreement between the two.
Through litigation and through this petition to the FERC, JEA has conjured meritless arguments in its attempt to back out of an agreement it signed over 10 years ago to purchase power from the Plant Vogtle Units 3 & 4 nuclear power generating facility, currently under construction in Waynesboro, Ga.
In its ruling, FERC found that it had no statutory jurisdiction over the agreement in particular or public power utilities in general. Accordingly, FERC dismissed JEA’s petition. “In sum,” the FERC order reads, “None of JEA’s arguments overcome the fact that, because MEAG is not a public utility, the Commission has no authority … to review or approve (or alternatively disprove) the wholesale sales of electricity in interstate commerce from MEAG to JEA pursuant to the PPA.”
“We are pleased with this decision,” said Jim Fuller, President & Chief Executive Officer of MEAG Power. “We’ve been confident that this would be FERC’s ruling, as the law is clear that FERC does not regulate public power utilities.”
MEAG Power was not alone in this view. Last fall, the American Public Power Association (APPA), the Large Public Power Council (LPPC), and the National Rural Electric Cooperative Association – the three trade associations representing the vast majority of the public power industry nationwide – filed a joint protest against this petition. JEA is a member of both APPA and LPPC. In all, 28 entities filed formal protests against JEA’s position with FERC, including the United States Department of Energy (“DOE”). None intervened on JEA’s behalf.
JEA was using this petition to FERC in an attempt to block a federal lawsuit MEAG Power filed last fall seeking to force JEA to perform under the Power Purchase Agreement. JEA argued that the suit should be dismissed or stayed because of the FERC jurisdiction issue. The decision by FERC clears the path for the United States District Court for the District of Georgia (the first-filed court) to exercise its rightful jurisdiction over this dispute.
The United States, acting on behalf of the DOE, has also filed a Statement of Interest in related litigation urging the federal court for the Middle District of Florida to deny JEA’s attempt to have the matter remanded to state court on the grounds that a matter involving strong federal interests should be decided by federal courts.
Under the agreement, JEA is committed to covering 41 percent of the MEAG’s share of the cost to finance the Vogtle expansion in exchange for access to the first 20 years of power generation from the new nuclear facility.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
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Georgia Power announced today the latest milestones at the Vogtle nuclear expansion near Waynesboro, Georgia – the placement of the third and final ring that comprises the Unit 3 containment vessel, and the placement of the fourth and final reactor coolant pump (RCP) for Unit 3.
Weighing just under 2 million pounds, approximately 38 feet high and with a diameter of 130 feet, the ring is the fourth of five sections that make up the containment vessel, a high-integrity steel structure that houses critical plant components. Click here to view a time-lapse video of the placement. The fifth and final piece – the containment vessel top head – is expected to be placed in 2019.
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Georgia Power announced today the placement of two key floor modules at the Vogtle nuclear expansion near Waynesboro, Georgia. These module placements, referred to as CA35 and CA33, will be followed by large concrete placements inside the Unit 4 containment vessel.
Both CA35 and CA33 are floor modules supporting critical path work in the unit. CA35 is the roof above the accumulator and CA33 is the roof above the chemical volume control system. Weighing nearly 72 tons, the two modules bring the elevation inside containment to 107 feet – the elevation of the maintenance deck. Since placement, additional work will begin installing rebar on the north side of containment, which will be followed by a concrete placement. These milestones support the upcoming installation of structural steel pieces that support the subsequent floor elevation.
For more information:
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
All four of the Vogtle 3 & 4 project co-owners (Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities) have voted to continue construction of the two new nuclear units near Waynesboro, Ga.
“We are all pleased to have reached an agreement and to be moving forward with the construction of Vogtle Units 3 & 4 which is critical to Georgia’s energy future,” said the co-owners. “While there have been and will be challenges throughout this process, we remain committed to a constructive relationship with each other and are focused on reducing project risk and fulfilling our commitment to our customers.”
In connection with the votes to continue construction, all four of the co-owners agreed to finalize and execute definitive agreements which helps mitigate financial exposure for each of them. The details are contained in Georgia Power’s Current Report on 8-K filed today.
The new units are the first to be built in the United States in more than 30 years and the only new nuclear units currently under construction in America. Expected on-line in November 2021 (Unit 3) and November 2022 (Unit 4), the new units are expected to generate enough emission-free electricity to power approximately 500,000 homes and businesses.
Today, Vogtle 3 & 4 is the largest jobs-producing construction project in the state of Georgia, employing more than 7,000 workers from across the country, with more than 800 permanent jobs available once the units begin operating. Progress and productivity continue to improve, illustrated by multiple recent achievements such as the placement of the first steam generator and both accumulators – a key component of the AP1000 reactor safety system – inside the Unit 4 containment vessel.
Additionally, an AP1000 unit in China reached its final technical milestone last week, which will allow the unit to enter commercial operations. Three more AP1000 units are in full testing and will reach commercial operation soon.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
The Board of MEAG Power voted unanimously today to continue construction of Plant Vogtle Units 3 & 4. MEAG Power joins co-owners, Georgia Power and the City of Dalton, which had, earlier, voted to continue. We await a determination from Oglethorpe Power, from whom an affirmative vote is also necessary for the project to continue.
MEAG Power will issue a more detailed statement following release of Oglethorpe’s decision.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
MEAG Power announced today that Congress has passed and President Donald Trump has signed budget legislation that will benefit the expansion of Plant Vogtle. Included in the budget agreement is a provision that suspends the deadline for receiving advanced nuclear production tax credits and a modification to allow public power utilities, such as MEAG Power, to utilize the credits which were intended to incentivize construction of new nuclear facilities in the U.S.
The passage of this bill is expected to provide benefits amounting to hundreds of millions of dollars for MEAG Power’s ownership share of the project. “Senator Isakson’s leadership has played an integral role throughout the process of updating and clarifying the law,” said Jim Fuller, MEAG Power’s President and CEO. “We would also like to thank Senator Perdue and all of the Georgia House delegation for their efforts.”
These benefits follow the recent favorable developments for the Vogtle project, including receipt of the full amount of the parent guarantee payments from Toshiba, and the conditional commitment from the U.S. Department of Energy for up to $415 Million in loan guarantees.
Plant Vogtle Units 3 & 4 consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Georgia. MEAG Power is a co-owner (22.7% share) in the units along with Georgia Power, Oglethorpe Power and the City of Dalton, GA. Additionally, through power purchase agreements with JEA and PowerSouth Energy Cooperative, MEAG Power will sell approximately 41.2% and 24.9%, respectively, of its share of the output in the nuclear expansion project for the initial 20 years of operation of each unit.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
Georgia Power announced today that Southern Nuclear has made significant progress on construction of Vogtle 3 & 4 since assuming project management on behalf of the project co-owners (Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities) from Westinghouse following its bankruptcy in 2017.
The company also announced that its revised capital and construction cost forecast for its share of the project has increased from $7.3 billion to $8.4 billion, based on a revised cost-to-complete estimate from Southern Nuclear. The new nuclear units are the first to be built in the United States in a generation and the only new units currently under construction in this country. With projected in-service dates still expected in November 2021 (Unit 3) and November 2022 (Unit 4), the new units will generate enough emission-free electricity to power approximately 500,000 homes and businesses.
For more information:
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
MEAG Power announced today that an agreement has been reached with Toshiba, the parent company of Vogtle 3 & 4 former primary contractor, Westinghouse, to receive all remaining scheduled payments from Toshiba in the amount of $3.2 billion by December 15, 2017.
MEAG Power’s share of the $3.2 billion final payment is approximately $732 million, with the remainder going to the other Vogtle co-owners (Georgia Power Company, Oglethorpe Power and Dalton Utilities). To date, the Vogtle co-owners have received $455 million in total scheduled payments from Toshiba under the parent guarantee for the Vogtle 3 & 4 project and this final payment will result in total parent guarantee payments to the co-owners of $3.68 billion. The agreement will become binding upon satisfaction of certain conditions, including but not limited to, approval of Toshiba’s board of directors and approval of the U.S. Department of Energy.
“The receipt of the remaining parent guarantee payments by December 15th is an important and favorable development in mitigating project risk,” stated Jim Fuller, MEAG Power’s President and CEO. “Obtaining the value of these payment commitments will lead to lower costs for the reliable, emissions-free output from the new Vogtle Units.”
The Plant Vogtle Units 3 & 4 project consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Georgia of which MEAG Power’s share is 22.7%. Additionally, through power purchase agreements with JEA and PowerSouth Energy Cooperative, MEAG Power will sell approximately 41.2% and 24.9%, respectively, of its share of the output in the nuclear expansion project for the initial 20 years of operation of each unit.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
Contact: Paul J. Warfel Office: 770.661.2772 Email: Pwarfel@meagpower.org
MEAG Power, today, received the first parent guarantee payment from Toshiba for construction of Plant Vogtle, Units 3 & 4. MEAG Power’s share of the $300 million payment is approximately $68 million, with the remainder going to the other Vogtle co-owners. This payment is the first of several scheduled payments from Toshiba that will total $3.68 billion.
Additionally, last week the U.S. Department of Energy (DOE) announced that it had offered MEAG Power a conditional commitment of up to $415 million in loan guarantees toward construction of its share of Units 3 & 4 at Plant Vogtle.
These positive developments result in savings that the end users of this emission free, reliable source of power will benefit from well into the future. Plant Vogtle Units 3 & 4 consists of two 1,100 MW Westinghouse AP1000 nuclear reactors being constructed in Burke County, Georgia.
MEAG Power is a co-owner (22.7% share) in the units along with Georgia Power, Oglethorpe Power and the City of Dalton, GA. Additionally, through power purchase agreements with JEA and PowerSouth Energy Cooperative, MEAG Power will sell 41.2% and 24.9%, respectively, of its share of the output in the nuclear expansion project for the initial 20 years of operation.
Final approval and issuance of these additional loan guarantees by the DOE cannot be assured and are subject to the negotiation of definitive agreements, completion of due diligence by the DOE, receipt of any necessary regulatory approvals, and satisfaction of other conditions.
MEAG Power is a nonprofit entity that was created by the Georgia General Assembly in 1975 to generate and transmit reliable, competitively-priced wholesale electric power to 49 Participant communities throughout the state. These communities have access to MEAG Power’s multibillion-dollar resources, including some of the lowest-cost, emissions-free energy in the region, as well as one of the most diversified fuel portfolios. MEAG Power operates in one of the largest and fastest-growing regions in the United States because of Georgia’s attractive logistics, pro-business environment and talented workforce.
