Georgia Power settles with SELC on Vogtle’s final cost to ratepayers

ATLANTA — Today the Southern Environmental Law Center (SELC), on behalf of Georgia Interfaith Power and Light (GIPL) and Partnership for Southern Equity (PSE), agreed to settlement terms with Georgia Power that will offset rate increases from Plant Vogtle construction costs and provide additional much-needed bill relief for seniors and lower-income Georgians.

Georgia Power negotiated with the Public Service Commission staff, SELC, and other consumer advocates ahead of a lengthy review of the project’s billions of dollars of budget overruns. In the end, Georgia Power agreed to a roughly 50% expansion of its energy efficiency programs or demand-side management savings target to .75% of annual retail sales starting in 2025. These programs invest in Georgians’ homes to reduce energy use and make bills less expensive.

The company also agreed to expand its popular bill-relief program (currently available to a limited group of income-qualified seniors) pledging to add up to 96,000 new participants over the next three years. Seniors in households with a combined income equal to or less than 200% of the federal poverty level, customers receiving Social Security Disability Income assistance or Supplemental Security Income, and customers who use HUD section 8 will now qualify for this important bill-relief program which reduces the average monthly bill by $33.50.

“We reached key settlement terms to mitigate bill hikes for Georgians with limited incomes and expand efficiency programs to help reduce energy usage and lower bills.” said SELC Staff Attorney Bob Sherrier. “While project delays and overruns do mean Georgians will be paying for this project for decades, Georgia Power agreed to significantly lower the construction costs they were expected to pass on to customers.”

According to the terms of the settlement, Georgia Power customers will still be on the hook for $7.562 billion in project construction costs. The remaining estimated $4.024 billion in costs attributable to Georgia Power will be the responsibility of Georgia Power’s parent, Southern Company, after crediting the $1.492 billion provided by Toshiba in the wake of the bankruptcy of the original contractor for the Vogtle units. The terms of this settlement must be approved by Georgia’s Public Service Commission after hearing testimony from expert witnesses to determine if the amount of Vogtle’s construction costs passed down to customers is “prudent.”

“Because Georgia has some of the highest energy bills in the nation, we fought for Georgia Power to step up and provide relief for people who endure dangerous heat because they can’t afford to keep the air conditioning running,” said Codi Norred, Executive Director of Georgia Interfaith Power and Light. 

“This settlement is a significant step in advancing our pursuit for energy equity and democratizing energy for many Georgians. The reality is many Georgia families continue to choose between keeping their homes cool or putting food on the table,” said Partnership for Southern Equity Chief Equity Officer Nathaniel Smith. “It will take Georgians decades to pay for this project. These efficiency programs will be a lifeline for many Georgians.”

Georgia Power customers have each already paid nearly $100 a year for more than ten years before Vogtle Units 3 and 4 ever produced electricity. In late July, Vogtle’s third nuclear reactor began commercial operation more than seven years after the unit’s original completion date. That milestone was one of three bill increases for Georgia Power customers in 2023, totaling more than $24 a month for the average residential customer.

“The construction of Units 3 and 4 is a historic achievement, that comes at a historic cost to Georgians,” said Gil Rogers, Director of SELC’s Georgia office. “My hope is the energy industry learns from Vogtle’s failures and prioritizes the development of cost-saving renewable options like solar and power storage.”