13 Jun (NucNet): Japan-based Toshiba Corporation has agreed to pay up to $3.68bn (€3.28bn) to the owners of the Vogtle nuclear power station expansion project in the US for the potential completion of two AP1000 pressurised water reactor units (PWRs) already under onsite construction.
Toshiba said in a statement that the money will cover its “parent company guarantee obligation”, which was agreed on between the Japanese company and the Vogtle owners in 2008 when Westinghouse Electric, majority-owned by Toshiba, received an order to build the two PWRs at Vogtle.
Toshiba said $3.68bn is the maximum amount the company will pay to honour its 2008 obligations. The actual payment will be made in instalments during a period from October 2017 to January 2021, the company said.
According to Toshiba, the agreed maximum payment limit will not be subject to any further increases or claims on behalf of the Vogtle project owners.
The Vogtle nuclear power station in east Georgia is owned by four companies – Southern Company subsidiary Georgia Power (45.7%), Oglethorpe Power (30%), MEAG Power (22.7%) and Dalton city (1.6%).
In a separate statement, Georgia Power said Toshiba’s decision to honour its prior financial guarantee and set a schedule for payments could potentially allow the Vogtle expansion project to continue.
Georgia Power also said it has finalised an agreement with Westinghouse which allows the transition of project management from Westinghouse to Southern Nuclear and Georgia Power.
The company said the agreement is subject to approval by the Westinghouse board of directors and “certain other conditions”, including bankruptcy court approval.
Troubled by significant cost overruns on construction of reactors at the Vogtle and Summer nuclear power stations, Westinghouse filed for bankruptcy protection in March 2017 to shelter its core businesses and give time to restructure for continuing operation.
Four AP1000s are under construction in the US, two at Vogtle in Georgia and two at Scana Corporation and Santee Cooper’s Summer nuclear site in South Carolina. Work has been continuing under interim assessment agreements following Westinghouse’s bankruptcy protection filing.
Toshiba said it is still involved in negotiations on its guarantee obligations and payment schedule for the Summer nuclear station expansion project.
