New Southern CEO takes over as Vogtle unit 3 to reach 100% power within days

The first of two new units at the Alvin W. Vogtle Nuclear Plant in Georgia reached 90% power on May 23 and is expected to reach 100% as early as May 27, Southern Co. executives said during the annual meeting of stockholders, where a new chief executive was welcomed.

"Just yesterday, we achieved the 90% power plateau on unit 3," new CEO Chris Womack — who began serving as president at Southern on March 31 — said during the May 24 meeting. "We've got about 10 tests, I think, to go through the next couple of days as we look to move to 100% power. Could be as early as Saturday but could be sometime next week."

The first of the two new reactors is on track to reach commercial operation, providing power to the grid, by the end of June, Womack said. Commercial operation is a requirement before the company can begin recovering costs from ratepayers.

Vogtle unit 4 is also receiving fuel ahead of expected fuel load as early as July, potentially coinciding with the Georgia Public Service Commission beginning its prudence review for the expansion project, which will add more than 2,200 MW of generating capacity.

"Yes, we've had our challenges," Womack said of the expansion project, which has been plagued by years of delays and cost overruns. "I'm confident that the state of Georgia and our customers, our company [and] the world would be so proud of the work that we've done in bringing Vogtle online."

Womack took over as CEO from longtime chief Tom Fanning, who held the role for more than a decade and will remain chairman of Southern's board of directors. Womack was chosen by the board unanimously and officially became CEO at the meeting's conclusion, Fanning said.

Fanning also emphasized that the transition did not mean his retirement was imminent.

"I'm not retiring," Fanning said. "I'm staying on as executive chair of the board, which means I'm still an employee, and that will carry on for some time."

Asked about the customer burden of paying for the Vogtle expansion, Fanning said Southern and regulated utility subsidiary Georgia Power Co., as well as other partners in the project, will carry the expense of the expansion. This includes $3.7 billion from Toshiba Corp., the former parent of Westinghouse Electric Co. LLC, the original builder of the Vogtle plant, which ended up in bankruptcy.

Southern and its subsidiaries have written off more than $3 billion, Fanning said. Georgia Power's cost estimate for its 45.7% share of the total project capital cost was $10.6 billion as of the company's most recent annual Form 10-K filing.

"The total bill is not going to be borne by the customer," Fanning said. "In my view, we're going to be faithful to customers in terms of what they thought and what the commission thought plant Vogtle would cost at the end of the day."

Georgia Power owns a 45.7% interest in the Vogtle plant. Other owners are Oglethorpe Power Corp. at about 30%, though it is looking to exercise an option to reduce that share to cut costs; the Municipal Electric Authority of Georgia at 22.7%; and the city of Dalton, Ga., at 1.6%, according to S&P Global Market Intelligence data. Southern Nuclear Operating Co. Inc. will operate the new units on behalf of the co-owners.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.