Limited guarantee

12 June 2017 By Lauren Silva Laughlin Follow @TheRealLSL

The Japanese company’s $3.7 bln settlement shores up Southern’s finances but leaves a cloud over its troubled reactors. Construction continues for now yet the utility is still on the hook for overruns. It may yet decide to pull the plug on the plant, and nuclear’s U.S. future.

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Toshiba said on June 9 it will give Georgia Power, a division of power company Southern, $3.68 billion to continue building two nuclear power plants in Georgia. The agreement, which was approved by the U.S. Department of Energy, affirms Toshiba’s guarantee following Westinghouse’s bankruptcy in March.

In addition to the guarantee, Georgia Power and Westinghouse have finalized an agreement that will transition project management from Westinghouse to Southern and Georgia Power. This agreement is subject to bankruptcy approval.

The first payment under the new agreement is due in October this year.

On May 3, Chief Executive Thomas Fanning said the utility would need time after securing agreement on the $3.7 billion from Toshiba to evaluate the best path forward.

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