Toshiba has agreed to speed up its $3.2bn payments to Georgia Power and the co-owners of Vogtle nuclear power plant located in Burke County, near Waynesboro, Georgia, US.
As part the deal, Toshiba, the parent company of the former chief contractor of the Vogtle nuclear expansion, has agreed to pay $3.2bn in ‘parent guarantees’ by 15 December 2017 to project partners including Oglethorpe Power, Georgia Power, MEAG Power and Dalton Utilities.
Georgia Power said that the Toshiba’s payment will be used to continue construction of the unit 3 and 4 reactors at the Vogtle nuclear power plant.
The new agreement, however, will be binding once approved by the US Department of Energy and board members of the Toshiba.
Toshiba, the parent company of Westinghouse Electric, has already paid $455m to Vogtle plant owners. Of the total parent guarantees, Georgia Power will receive about $1.4bn.
Earlier, Toshiba agreed to make the payments through 2020. The move comes as Toshiba’s subsidiary, Westinghouse Electric, stepped out of the project after filing for Chapter 11 bankruptcy protection in March 2017.
Georgia Power chairman, president and CEO Paul Bowers said; "We are pleased to have reached this constructive agreement with Toshiba regarding the parent guarantees for the Vogtle project and every dollar will be used to benefit our customers.
"We remain committed to making the right decisions for our state's energy future and continue to believe that completing both Vogtle units represents the best economic choice for customers and preserves the benefits of carbon-free, baseload generation for Georgia electric customers."
Recently, the staff of the Georgia Public Service commission recommended the regulators to reject the Vogtle expansion project claiming that the project is too expensive.
Image: The unit 1 and 2 reactors of the Vogtle nuclear power plant in Georgia, US. Photo: courtesy of NRC/Wikipedia.