Georgia Power to Pay $413 Million in Lawsuit Over Nuclear Project

Georgia Power will pay $413 million in a lawsuit settlement over cost overruns from their nuclear reactors at Plant Vogtle. Payments will go to Oglethorpe Power Corp. in order to keep future bill costs down for electric customers in Georgia.

In June of 2022, Oglethorpe Power sued Georgia Power over who should pay for the cost overruns associated with its third and fourth nuclear reactors. Georgia Power will incur costs, but customers of the utility will not be paying extra in light of the settlement. Oglethorpe agreed to maintain its 30% ownership of the Vogtle plant as a part of the agreement, citing reduced costs and system growth in using energy from Plant Vogtle.

This settlement is but one of the many obstacles Georgia Power has faced in its efforts to expand its nuclear power supply. The overall project is currently seven years behind schedule and $17 billion over budget, the Associated Press has reported. Georgia Power also recently announced that it will have to replace one of the pumps that cools its Unit 4 reactor, so the reactor will not be commercially viable by the end of the year as planned.

The immense costs and time commitment of the Vogtle project may reportedly deter other utilities from pursuing nuclear projects as a source of clean energy, according to the Associated Press.

Vogtle Project Represents Warnings Against Large Nuclear Investments

Earlier this year, a research article published in Joule Commentary argued that investing in new nuclear plant development is not a cost-competitive, safe, or time-efficient strategy for decarbonization. The article instead asserted that such investment is bad for the climate.

The report warns of dramatic price overruns, construction delays, and safety concerns associated with new nuclear developments, all issues that have occurred during Georgia Power’s project. Especially as renewable energy costs have decreased, the need for investment in large nuclear projects may appear unnecessary as they may cause more damage than progress.

Nuclear energy, nonetheless, remains a key player in the United State’s clean energy portfolio — the energy source provides about 55% of overall carbon-free power in the country. In order to meet international decarbonization goals, according to the International Energy Agency, increased investment in nuclear power will be crucial.

For this goal to be realized without the costs and time intensity of large nuclear plants, nuclear power generation will likely shift toward small modular reactors and other new nuclear technologies.