Georgia Power announced that it has reached an agreement with the U.S. Department of Energy for a conditional commitment of approximately $1.67 billion in additional loan guarantees for the Plant Vogtle nuclear expansion project near Waynesboro, Ga.

Georgia Power had previously secured loan guarantees of $3.46 billion for the construction of Vogtle units 3 and 4, the first to be built in the United States in more than 30 years.

With a total of more than $5 billion in anticipated DOE loan guarantees, Georgia Power expects to be able to provide more than $500 million in present-value benefits to its customers. 

"We thank the DOE for their support and commitment to the Vogtle 3 and 4 project," said Paul Bowers, chairman, president and CEO of Georgia Power. "From the outset, Georgia Power and the project co-owners have worked to minimize the impact of the project on our customers' bills and these additional loan guarantees will help us continue to reduce our financing costs."

"This announcement reflects the wide-ranging governmental support for nuclear energy in America," said Bowers. "The administration, Secretary Rick Perry, the entire cabinet and members of Congress from both sides of the aisle have been exceedingly helpful with the construction of the Vogtle 3 and 4 project."

Georgia Power owns 45.7 percent of the new units, with the project's other Georgia-based co-owners including Oglethorpe Power, MEAG Power and Dalton Utilities. On August 31, Georgia Power filed a recommendation with the Georgia Public Service Commission to continue construction of the Vogtle nuclear expansion supported by all of the project's other co-owners. The recommendation was based on the results of a comprehensive schedule, cost-to-complete and cancellation assessment launched following the bankruptcy of Westinghouse in March. The Georgia PSC is expected to review the recommendation and make a decision regarding the future of the Vogtle 3 and 4 project as part of the 17th Vogtle Construction Monitoring proceeding. Read more here.

Final approval and issuance of these additional loan guarantees by the DOE cannot be assured and are subject to the negotiation of definitive agreements, completion of due diligence by the DOE, receipt of any necessary regulatory approvals, and satisfaction of other conditions.