Nuclear Energy Insight
Summer 2012—Earlier this year, Southern Nuclear Co. received a license from the U.S. Nuclear Regulatory Commission to build and operate two reactors at its Plant Vogtle site in Georgia, the first to be built in more than 30 years.
Insight spoke with Steve Kuczynski, Southern Nuclear’s chairman, president and CEO about the project.
Q: Some media outlets have claimed the Vogtle project is already over budget. How is construction going?
Kuczynski: I want to emphasize that there are no cost overruns with the project. In the most recent construction monitor filing with the Georgia Public Service Commission, Georgia Power notes that the project was $28 million under budget. We are in negotiations with the consortium—Westinghouse and Shaw—about costs relating to delays in receipt of the [license] and design changes. The certified cost to Georgia Power remains $6.1 billion, and we believe that targets relating to schedule and cost to customers are achievable with Unit 3 coming on line in 2016 and Unit 4 in 2017.
Our targets to provide the overall benefits of a cost-effective generating plant when it is needed by customers are achievable.
Q: This was the first combined construction and operating license issued for a U.S. nuclear power plant. The hope was that the new process would make things more efficient. Are you finding that to be the case?
Kuczynski: That licensing process is working and working well. Given that it was the first exercise of that process, everyone believes that it delivered what it promised to do.
Q: Natural gas prices have hit rock bottom. Almost all new build in electricity generation in America is natural gas. Economic growth and electricity demand will remain sluggish for the foreseeable future. Why build a nuclear plant at a time like this?
Kuczynski: [The Vogtle 3 and 4 project] meets our goals of providing safe, reliable, clean and affordable electricity. To do that, you need a diverse fuel supply. Nuclear energy will make up about 15 to 20 percent of our energy mix. In order to keep that energy mix and meet expected load growth, we need to continue to develop this technology. [The reactors] will save consumers some $6 billion over the life of the units when compared with coal and natural gas units. Also, nuclear fuel has historically demonstrated much less price volatility than natural gas—and we expect that to continue.
Q: The NRC commissioners approved issuing the Vogtle license by a vote of 4-1, with Chairman Gregory Jaczko dissenting. He argued that the license should require the implementation of the NRC’s post-Fukushima regulations at the site. How will Fukushima lessons learned and the NRC regulations be incorporated into the construction and operation of the new reactors?
Kuczynski: Any requirement that is promulgated will apply to Vogtle 3 and 4. We’re treated now as an operating plant. We are in the exact same position in implementing lessons learned from Fukushima whether it’s on Vogtle 3 and 4 or our existing nuclear power fleet.
Remember, the advanced, passive design of the AP1000 reactor does not rely on off-site or on-site AC power for three days. That is a major, major point of strength. It reflects on 20 years’ worth of work, on taking the very best features of our existing fleet, improving the design to make it safer, easier to build, operate and maintain. It’s a strong statement on this design versus earlier generations of reactor designs.
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