Toshiba To Pay $3.68 Billion for Westinghouse Reactors
- Author: Zachary Reyes Jun 24, 2017,
Jun 24, 2017, 15:29
"We are pleased with today's positive developments with Toshiba and Westinghouse that allow momentum to continue at the site while we transition project management from Westinghouse to Southern Nuclear and Georgia Power", he said referring to his company and its parent. The deal comes in the wake of Westinghouse's bankruptcy filing in March of this year, and was reached on the same day contractors in Vogtle's construction filed numerous liens for unpaid bills for their work on the Georgia project as well as the still-unfinished Units 2 and 3 at V.C. Summer Nuclear Generating Station in SC, another Westinghouse AP1000 project. Georgia Power and Westinghouse have also entered into an agreement to transfer project management at the Vogtle expansion from Westinghouse to Southern Nuclear and Georgia Power. The agreement must still be approved by the Westinghouse Board of Directors and is subject to certain other conditions, including bankruptcy court approval.
News reports say that Southern Company Chief Executive Officer Thomas Fanning literally flew to Japan to specifically to confront Toshiba executives face to face to secure payments that would see the Vogtle expansion project's completion.
Not only has Westinghouse found itself in financial peril, but Toshiba has suffered billions of dollars in losses in recent years, which it primarily attributes to Westinghouse and the reactor construction projects in Georgia and SC, which are years behind schedule and billions of dollars over budget. The future of the nuclear expansion at the power plant, which is near Augusta, has been - and still is - up in the air since the Toshiba subsidiary Westinghouse declared bankruptcy earlier this year.
Georgia Power is now conducting an analysis on what it will cost and how long it will take to complete the nuclear expansion project. Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities co-own the project.
The service agreement features engineering, procurement and licensing support, along with access to Westinghouse intellectual property required for the nuclear power plant. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company's promise to 2.5 million customers in all but four of Georgia's 159 counties.
Toshiba's bankrupt nuclear unit left an uncertain future for two half-finished nuclear reactors in Georgia.
Nuclear power is a controversial form of energy production.
The struggling conglomerate is rushing to find a buyer for its prized chip unit, to cover billions of dollars in cost overruns at Westinghouse. Georgia Power focuses on delivering world-class service to its customers every day and the company is consistently recognized by J.D. Power and Associates as an industry leader in customer satisfaction.