Is Vogtle Still Viable

Update Aug 11

Another vice.

Parts Shortages Crimp U.S. Factories
As suppliers struggle to meet demand, Caterpillar fights to fill orders and Oshkosh idles crane output

By
Doug Cameron and
Austen Hufford Aug. 10, 2018 5:30 a.m. ET


American factories are running short of parts.

Suppliers of everything from engines to electronic components aren’t keeping up with a boom in U.S. manufacturing, which has lifted demand in markets such as energy, mining and construction. As a result, some manufacturers are idling production lines and digesting higher costs.

Update Aug 10

Why do I get the feeling the Ga PSC told the Southern Company the only way you can continue on this project is to lie to us. You got to lie to for the good of the community. They did this in the Summer plant. Did you see the FBI just recently ask the Westinghouse Company for all their documents on the Summer Plant. Do you think they will be any reverberation over this? Remember the FBI is investigating the cover-up of the Westinghouse report which was saying how badly the Summer project was progressing. But it wasn't only that. The report was talking about both the Summer plant and Vogtle. But the FBI now is only investigating Summer and Westinghouse. Can you imagine the gumption of these guys if Vogtle blows up like the Summer Plant?  

"The Post and Courier today published a confidential report that warned six years ago that Westinghouse Electric wasn’t prepared to build four new nuclear reactors in Georgia and South Carolina.

The internal document highlighted Westinghouse’s failure to use licensed engineers to design the reactors at V.C. Summer station in South Carolina and Plant Vogtle near Augusta, Georgia." 

Will there be a day soon when the FBI will be asking for documents from the PSC and the Southern? Long ago, you can imagine their lawyers will be advising the Southern Company you must now treat all Vogtle construction documents as potentially undergoing a FBI investigation. Preserve all potential evidence. That will certainly shake their stock price?

See the vice they are in?

Vogtle cost overruns spook Wall Street

Kristi E. Swartz, E&E News reporter Published: Friday, August 10, 2018

Wall Street criticized a $2.3 billion cost increase at the Plant Vogtle nuclear expansion project in Georgia, largely because Southern Co. could not give assurances that it wouldn't happen again.

My question in all of this is where was the NRC? Why wasn't there accurate reports on the true conditions Summer. Why wasn't there NRC's news conferences on the perilous condition of the new build? Why was their no site "stop work" orders till you get you shit together? Why wasn't the NRC protecting the greater interest of South Carolina ratepayers instead of the NRC bureaucracy, the corporations and the politicians. Right, there was tens of billions of dollars sloshing around here and the natural instincts with humans being corrupt without the proper controls.      

Update Aug 9

premarket Down 1.4%

The Dems governor candidate is nipping at Deal's heels. I wonder if he wins the election, will he change his tune about cost overruns. These Ga republicans act more like a cult or gang.

Hmm, Deal can't run again. So here below are the candidates.

"Almost overnight, Georgia’s captivating governor’s race between Brian Kemp and Stacey Abrams has taken on the dimensions of a defining moment, one that will, regardless of outcome, determine what the state represents and how it is perceived." 

Man, if Adams wins? There has been a tremendous increase in minorities in Ga since 1990. I lived in Sugar Hill Georgia during the 1990s. It is in Gwinnett county. It was definitely a rock solid  republican stronghold. Hillary took Gwinnett by a wide margin in the last election. This is shocking to me. Is the blue Tsunami coming to Georgia. Adams seems to be neutral on Vogtle. The utilities are a juggernaut of political power it Georgia.                  

Georgia News: Georgia Governor Nathan Deal applauds meaningful gains on Vogtle 3 & 4
08/09/2018 Marty Smith

ATLANTA, GA – Georgia Governor Nathan Deal yesterday commended the substantial progress made by Georgia Power on Plant Vogtle Units 3 & 4 construction.

“I applaud the leadership of Paul Bowers in ensuring this critical infrastructure and economic development project continues,” said Deal. “Georgia Power has pledged that any new price increases with this change in budget will be covered by the company, and not consumers, and I applaud its continued adherence to that commitment. This is the only ongoing nuclear energy construction project in the country, and the first to earn a permit in more than three decades. I support the efforts of Georgia Power in ensuring our citizens have a long-term, sustainable energy source while creating thousands of jobs. I look forward to completion of Plant Vogtle Units 3 & 4 and its continued impact on our economy and infrastructure.”

______

SOURCE: news provided by GOV.GEORGIA.GOV

***So the Southern Company said they are going to write off 1.1 billion now, but they leave open whether they might later submit it to the PSC. I am telling you, The southern company is just trying get past the mid terms in order to protect the politicians. This all is a political scam...     

Ultimately what I think this means, this isn't a one off billion dollar write-off. It will be a billion dollar a year write off for as long as the eyes can see. And if they put this dog on the line, the quality of the equipment will be so poor, it will have a terrible capacity for its life.   

This is exactly the Westinghouse scenario. Basically Westinghouse had to eat the Summer Plant cost overrun. They temporally fudged their earning until they were caught. Then went bankrupt. Now the Southern company is in the same vice by the PSC. No more cost overruns, either you shut the project down or eat all the rest of the cost overruns...  

Huge 4% decline on opening and tremendous volume.

Southern down about 3% in the pre market? 

Remember what the Ga PSC said. This project isn't viable if it goes over the budget by one penny or any delay.

No doubt the reservoirs are almost unlimited, I am wondering how the stock market this morning is going to handle this news.

So from now on, Southern on cost overruns, they are going to eat these associated cost. The 700 and 400 million dollars plus labor wage sweeteners. Maybe if they paid the laborers much better wages the rift raft duggies and alcoholics wouldn't be needed as much. Remember cat 5 hurricane winds inundating the site, the unprecedented economic boom in the USA at this time.

That reminds me. What about a massive hurricane hitting the site unprepared this season??? Massive delays because they didn't anticipated this. 

Southern Co. to absorb $1.1B in added Vogtle costs

Kristi E. Swartz, E&E News reporter Published: Wednesday, August 8, 2018

Significant progress made on Vogtle 3 & 4 construction

Company to absorb $700 million additional projected costs; No impact on customer bills from these future costs

As work continued at the site because interrupted during the transition from Westinghouse to Southern Nuclear, project leadership made a series of decisions, such as providing craft labor incentives to both attract and retain adequate staffing levels and increased field supervision and engineering oversight, in an effort to lower project risk and maintain project momentum. As a result, and based on a year's worth of experience managing the project, Southern Nuclear has revised its estimate of the cost to complete the project. This revised forecast includes approximately $700 million in additional projected costs which will be absorbed by the company and have no impact on customer bills. While it is believed the increased projected costs are reasonable, necessary and prudent, the company has decided not to ask the Georgia Public Service Commission (PSC) to approve those costs so soon after receiving the Georgia PSC's approval of the capital forecast last year.

Additionally, based on the latest estimate, the previous contingency for the project has been determined to be insufficient to fully offset forecasted cost increases resulting in an increased contingency of approximately $400 million, which may be presented to the Georgia PSC for evaluation as and when appropriate in the future.

ATLANTA, Aug. 8, 2018/PRNewswire / -- Southern Company today reported a second quarter 2018 loss of $154 million, or 15 centsper share, compared with a loss of $1.38 billion, or $1.38per share, in the second quarter of 2017. For the six months ended June 30, 2018, Southern Company reported earnings of $784 million, or 77 centsper share, compared with a loss of $723 million, or 73 centsper share, for the same period in 2017.