POWER May 2012 - 39

NUCLEAR
until we have enough licensed operators
that have passed all the tests and are ready
to run the plant. Also, we must successfully
pass all the inspections, tests, and
analyses that are a part of verifying that
this plant was built according to design, "
Collins added. " There is an entire group of
people focused on well over 800 inspections,
tests, analyses, and acceptance criteria
(ITAAC) work packages for both units.
When the ITAAC packages are satisfactorily
completed and the NRC has reviewed
and approved these packages, then they
will allow us to load fuel. "
Receipt of the COL is also an important
milestone for financing of the projects. On
June 18, 2010, Southern Co., on behalf of
Georgia Power, accepted the first conditional
commitment for federal nuclear loan
guarantees of approximately $3.4 billion,
or 70% of Vogtle Units 3 and 4 eligible
project costs. The loan from the Federal
Financing Bank includes a first lien to the
Department of Energy (DOE) for Georgia
Power's ownership in Vogtle Units 3 and
4 secured by Georgia Power's 45.7% interest
in the two new units and was contingent
upon receipt of the COL from the
NRC. The entire project is estimated to
cost about $14 billion. Georgia Power's
share of the construction cost is currently
forecast to be about $6.1 billion, including
$1.7 billion of financing costs to be collected
during construction.
The loan for Units 3 and 4 was authorized
by Section 1703 of the 2005 Energy
Policy Act's Title XVII, which allows financing
of clean energy technologies (including
nuclear, advanced fossil energy
coal, carbon sequestration, and projects
promoting industrial energy efficiency)
that are unable to obtain conventional
private financing due to high technology
risks. Collins reminded us that " Southern
Company is on record that we do not need
the loan guarantee to build the plant. It
allows us to get capital at a lower interest
rate. This reduces financing costs, and
those savings are passed directly to our
customers. The savings translate back to
customer at about $25 million a year for
the 30-year life of the bond. "
NRC Involvement Continues
On March 11, 2011, the Great East Japan
Earthquake-rated a magnitude 9.0-and
subsequent tsunami decimated the Fukushima
Daiichi nuclear plant site and
produced widespread devastation across
northeastern Japan. ( " Nuclear Power in
the Shadow of Fukushima, " July 2011 and
" The Fukushima Fallout: Six Months After
the Nuclear Crisis, " September 2011
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May 2012 | POWER
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39
are examples of the extensive coverage
of the accident available in the POWER
archives at www.powermag.com.) That
event clearly affected the NRC's vote on
the first COLs.
Four NRC commissioners (Kristine L.
Svinicki; George Apostolakis; William D.
Magwood, IV; and William C. Ostendorff)
voted to grant the COLs, while Chairman
Gregory Jaczko cast the only dissenting vote.
According to the Augusta Chronicle, Jaczko
said he could not support issuing the license
as if Fukushima had not happened.
The commissioners agreed in spirit with
Jaczko that the NRC's responsibility is to
make the best decisions for nuclear safety.
There opinions divide.
" There is no amnesia, individually or collectively, "
Commissioner Svinicki said of the
NRC's attention to lessons learned from Fukushima.
Commissioner Magwood agreed.
" Plant Vogtle's units 3 and 4 will represent a
new era of nuclear safety, " he said.
The four commissioners recognized
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