Dive Brief:

Georgia Power and other owners of the Vogtle nuclear expansion say they have finalized a settlement with contractors that positions Westinghouse to lead construction and targets 2019 and 2020 for operation of the new nuclear units, Smart Grid News reports.

say they have finalized a settlement with contractors that positions Westinghouse to lead construction and targets 2019 and 2020 for operation of the new nuclear units, Smart Grid News reports. In October, Georgia Power announced Westinghouse had struck a deal with CB&I to take over as the lead contractor; the announcement this week said the on-site transition would "begin immediately."

The Vogtle expansion, which would be the first new nuclear generation built in the U.S. in 30 years, is years behind schedule. But the settlement ends all claims being litigated and is positive for the future of the project, Georgia Power officials say.

Dive Insight:

Years behind schedule, the developers of the Vogtle nuclear expansion this week said they have reached an important milestone. Not on the construction side, but they have finalized a settlement that ends litigation with contractors and gets the project back on schedule.

"This settlement is extremely positive for the Vogtle expansion," Buzz Miller, executive vice president of nuclear development for Georgia Power, said in a statement. "The project is more than halfway completed based on contractual milestones with all parties focused 100% on project execution."

Last year, Georgia Power announced that Westinghouse would be taking over as the lead contractor on the deal. The new statement indicates the on-site transition is underway.

As part of the settlement, the project's remaining projected customer rate impact will total approximately 2.5%, which Georgia Power said is an average of less than 1% annually through completion. Georgia Power's portion of the settlement cost is approximately $350 million, "significantly less than the claims that were in litigation," the company said. The utility will likely submit the settlement agreement to the state's Public Service Commission in the coming weeks.

Along with the new announcement, the companies said Westinghouse has contracted with Fluor Corp. to manage the construction workforce at the Vogtle expansion site. Other owners of the expansion include Oglethorpe Power Corp., the Municipal Electric Authority of Georgia and Dalton Utilities.