Reiko A. Kerr,
Senior Vice President, Finance and Administration, and Chief Financial Officer
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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