State regulators in Georgia have voted unanimously to pass on the majority of the financial burden of completing Plant Vogtle's two new nuclear reactors to Georgia Power customers. The decision, made by the five elected members of the Georgia Public Service Commission (PSC), means that ratepayers will be charged approximately $7.56 billion out of the $10.2 billion expected to be spent on the project. The remaining $2.63 billion will be absorbed by Southern Company, the parent company of Georgia Power.

This move comes after years of cost overruns, with Georgia Power customers already shouldering a monthly surcharge to pre-pay for the expansion of Plant Vogtle. The approved plan will result in another rate increase of approximately 6% for residential customers once Vogtle's second new reactor, Unit 4, comes online. Unit 4 is expected to be completed by the end of the first quarter of next year.

With Vogtle's Unit 3 already in operation and costing an additional $2.1 billion in construction costs, the average Georgia Power residential customer has already experienced a 3.2% increase in their monthly bills this summer. As a result of the PSC's recent decision, customers on Georgia Power's standard residential plan will face a cumulative 10% increase in their monthly bills due to Vogtle's capital and construction costs.

The PSC's staff has stated that the project's cost overruns have eliminated any economic benefits for ratepayers, suggesting that natural gas plants would have been a more efficient investment. The original estimated cost of the project was $14 billion, but spending has now skyrocketed to over $35 billion.

While Georgia Power spokesman John Kraft defended the PSC's decision, stating that it reflects a balanced approach, critics argue that it places an unreasonable financial burden on customers. Kim Scott, the executive director of local nonprofit Georgia WAND, notes that ratepayers have consistently faced rate increases throughout the project's delays and overruns.

The completion of Plant Vogtle's new units was once seen as a potential revival for the nuclear industry in the U.S. However, the delays and budget overruns have had a chilling effect on other utilities' nuclear ambitions. Currently, there are no other commercial nuclear plants under construction in the country.

To address potential further cost overruns, Georgia Power will face penalties if Unit 4 is not placed into service by March 31, 2024. In the event of unexpected outages after the first year of operation for Unit 3 or Unit 4, Georgia Power must prove that they are not due to engineering or construction errors, or face possible crediting of costs to customers.

As part of the agreement, Georgia Power will expand its Income-Qualified Senior Citizen Discount program, benefiting eligible customers with additional bill relief. The Southern Environmental Law Center (SELC) estimates that the average eligible customer will save $33.50 on their monthly bills. The expansion will now include customers receiving certain forms of government assistance.

With this decision drawing mixed reactions, proponents of renewable energy hope that the Georgia Public Service Commission will focus on affordable green options such as solar and battery storage as they move forward after the completion of Vogtle.

In conclusion, Georgia Power customers will bear the brunt of the cost overruns for Plant Vogtle's nuclear reactors, as the project's budget has soared and completion dates have been pushed back significantly.