In this June 13, 2014 file photo shows construction on a new nuclear reactor at Plant Vogtle power plant in Waynesboro, Ga. Southern Co. is facing increasing pressure after announcing an 18-month delay on its nuclear plant in Georgia, a lag that could cost at least $720 million. Those payments from Westinghouse Electric Co. and Chicago Bridge & Iron Co. would offset roughly a third of the costs Southern Co. could face if its two new reactors at Plant Vogtle were delayed an additional 18 months. Southern Co. subsidiary Georgia Power disclosed the potential delay last week and estimated it could cause another $720 million in financing and ownership costs.
CB&I disputed it was responsible for the delays, while Westinghouse Electric declined to comment.
"We think liquidated damages could offset a great deal of those charges," Fanning said. Southern Co. has not accepted the latest timeline from its contractors, which Fanning said might still be shortened.
Nuclear industry supporters had hoped the new plant in Georgia and a sister project in South Carolina would prove reactors could be built without the delays and cost overruns common years ago. The first new reactor at Plant Vogtle was supposed to start producing power in April 2016, with the second reactor following a year later. The latest schedule would push back those deadlines roughly three years.
Beyond paying damages for a late schedule, Southern Co. officials have assumed Westinghouse and CB&I will pay the bulk of building costs caused by delays. The plant's owners and builders are already suing each other over prior financial disputes.