http://www.independentmail.com/news/northeast-georgia/analyst-new-savings-erode-as-cost-of-nuclear-plant-grows

Analyst: New savings erode as cost of nuclear plant grows
By: Associated Press
Posted: 7:14 AM, Jun 24, 2015

ATLANTA - The rising cost of building a new nuclear plant in Georgia will swallow most of the $2.7 billion in newfound savings that Southern Co. has publicly touted, a state analyst said Tuesday.

Southern Co. and its partners are building two more nuclear reactors at Plant Vogtle, a project running more than three years behind schedule. Time is money. The longer it takes to build, the more Southern Co. subsidiary Georgia Power must pay in construction and finance charges.

Since state regulators approved the plant in 2009, power company executives said they secured $2.7 billion in newfound savings, making the project more financially attractive. For example, the utility benefited from cheaper-than-expected borrowing and inflation costs, received government loans and expects to get tax credits.

But the actual savings could be as small as $208 million after subtracting new costs related to the delays, according to financial analyst Philip Hayet, who monitors project finances for the state Public Service Commission. By comparison, Georgia Power now expects to spend $7.5 billion on its share of construction expenses.

"It's now virtually negligible," Hayet said, describing the value of the savings identified by the utility.

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