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Georgia Power Files Countersuit Over Cost Overruns at Plant Vogtle Nuclear Site

August 27th, 2012

Georgia Power is countersuing the contractors building its new twin nuclear reactors at Plant Vogtle near Augusta. The contractors, Westinghouse and The Shaw Group, filed the original lawsuit last month, claiming Georgia Power owes them tens of millions of dollars over problems involving the site’s foundation.

Georgia Power spokesman Mark Williams says contractor disputes were bound to happen on such a big project. He insists it won’t delay construction.

“This is a contractual step that’s not going to distract us. There are about 2,200 people on site now working to build these units, so there is just a great variety of work being done. It’s a very busy place.”

Contract terms force Georgia Power to pay half of disputed costs automatically.

In the countersuit, the utility argues it was overcharged by the contractors. Georgia Power wants to be reimbursed the amount already paid, roughly $30 million.

Williams says the $14 billion project remains on schedule. The first new reactor is slated for completion in 2016, the second for 2017.

Meanwhile, Georgia Power and its contractors are still in negotiations over at least $400 million in separate cost overruns. Williams says those talks are “progressing.”