- PTC will reduce risk for continuing construction of nation’s new reactors
- Nuclear PTC to benefit two Vogtle reactors and NuScale Power project
- Signed bill becomes law with bipartisan support in both houses
The president has signed into law a budget bill that extends the nuclear production tax credit (PTC). NEI President and Chief Executive Officer Maria Korsnick hailed the new legislation, saying that it showed the nation’s commitment to retain its leadership in commercial nuclear technology.
The bipartisan vote by both houses of Congress to allow new reactors to receive the nuclear production tax credit also was a vote for continued American leadership in nuclear energy, environmental stewardship and thousands of jobs.
Georgia Power, co-owners of two Westinghouse AP1000 reactors being built at the Vogtle site in Georgia, praised Congressional members who advocated for the new legislation which will “further reduce risk for continuing construction of Vogtle 3 and 4.”
“We are grateful to Sen. [Johnny] Isakson [R-Ga.] for his leadership on this issue, and to the entire Georgia delegation for recognizing the importance of new nuclear generation and demonstrating renewed federal support for the Vogtle project,” said Paul Bowers, chairman, president and CEO of Georgia Power. “At Georgia Power, we are focused on delivering value to our customers every day and we're committed to completing these new units, which will provide millions of Georgians with carbon-free energy and help keep electric rates low for 60 to 80 years into the future.”
Korsnick thanked a bipartisan group of legislators who championed the legislation and who ultimately helped secure its passage into law.
“While the bipartisan majorities in both houses deserve praise, our industry owes a debt of gratitude to the sponsors who championed this legislation, Sens. Tim Scott (R-S.C.) and Johnny Isakson and Reps. Tom Rice (R-S.C.) and Earl Blumenauer
(D-Ore.),” she said.
Specifically, the legislation:
- allows for new nuclear reactors placed in service after Dec. 31, 2020 to qualify for the nuclear PTC.
- permits the secretary of energy to allocate credits up to a 6,000 megawatt capacity limit for the first “new nuclear” reactors placed in service after Dec. 31, 2020.
- allows public-entity project partners to transfer their credits to other project partners.
The deadline change will ensure the two reactors being built at Vogtle will benefit from the PTC. The 6,000 megawatt capacity limit indicates the PTC will also benefit NuScale Power LLC’s and its partners’ plans to build its first commercial power plant at the Idaho National Laboratory by 2026.
“The PTC is not only an essential component required to complete construction of two Westinghouse AP1000 reactors at Vogtle Electric Generating Plant in Georgia, but it also paves the way to build NuScale Power LLC’s innovative small modular reactor design in Idaho,” Korsnick said.
Georgia Power said that the nuclear PTC will “provide benefits to customers through a reduction in revenue requirements beginning when the units go into service and for many years beyond.”
The company added that construction at Vogtle is moving forward, despite earlier headwinds.
“Construction has continued uninterrupted at the Vogtle site following Westinghouse's bankruptcy in March 2017 with all Vogtle co-owners working together to maintain the project’s momentum,” Georgia Power said. “Progress is steady and evident, illustrated by multiple recent achievements such as the placement of the 225,000-pound Unit 3 pressurizer in January and 1,300 cubic yards of concrete placed inside the Unit 4 containment vessel in December.”
The legislation comes just days after Korsnick testified to Congress, warning that swift action was needed to support the domestic nuclear industry if America did not want to cede its technological leadership in commercial nuclear technology to rivals like Russia and China. One of her chief recommendations to Congress that day was extending the nuclear PTC.