Vogtle is Latin for Cost Overruns

Kristi “Kickass” Swartz of the AJC reports that Georgia Power has been sued in Federal Court by Westinghouse (the reactor maker) and Shaw for allegedly materially misrepresenting the amount of soil available for backfill. Backfill is important to gaining approval from nuclear regulators so moving forward without it is not an option. The amount in question is $58 million, of which Georgia Power has paid $29 million (because of a dispute clause requiring them to pay 50% of a disputed amount).

But don’t be concerned! Georgia Power’s reaction: “When compared to the project whole, the disputed amount is not large.”

Which is true, the entire plant costs $14 BILLION. Oh and yes, it has been a whole two weeks since the last news of a cost overrun.

And really, why be concerned with a mere $58 million disagreement, when the same parties have an unrelated $800 million donnybrook brewing about a different dispute.

 

7 comments

  1. Spacey G says:

    If I hadn’t seen Gawker’s “Mitt Romney Ends His 2012 Casual Racism European Tour” headline just minutes ago this would’ve made my Headline Du Jour.

  2. Romegaguy says:

    It’s ok. The good folks at the PSC will make sure to pass those costs along to the consumers.

  3. oompaloompa says:

    The general assembly will have us paying for that as well as the new stadium before it’s all over.

  4. The Comma Guy says:

    Update with a bad slip: http://www.ajc.com/business/disputed-costs-at-vogtle-1500163.html

    “But the utility warned that “if these costs ultimately are imposed upon the owners, Georgia Power would seek an amendment to the certified cost” of the project. The Georgia Public Service Commission would have to improve any cost increases and decide whether customers should pay for them.”

    The PSC needs to “improve” a lot of cost increases I bet….

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