August 8, 2018

Oglethorpe Power Announces Impact of Latest Vogtle 3 and 4 Cost Projections

Contact: Terri Statham
E-mail: terri.statham@opc.com

TUCKER, GA–August 08, 2018 – Oglethorpe Power Corp. (OPC), which owns a 30 percent share of Vogtle Units 3 and 4 currently under construction, announced today the impact of the new budget forecast developed by Georgia Power Company and Southern Nuclear Corp. to complete the nuclear reactors.

“The need to adjust OPC’s budget to complete Plant Vogtle 3 and 4 to account for the recently announced increases will be muted for OPC and its member EMCs, due to a conservative contingency that we imbedded in our existing budget of $7.0 billion,” said OPC President and CEO Mike Smith.

In August 2017 the Oglethorpe Board of Directors approved a $7.0 billion budget that included a contingency most recently valued near $490 million.  OPC’s existing budget is adequate to cover the bulk of its share of the recently announced increases in the base capital forecast for the project.

Oglethorpe is still analyzing the need to rebuild its contingency, based on this new estimate-to-complete forecast provided by Georgia Power and Southern Nuclear.   As a result, at this time, OPC cannot provide a specific amount for its revised budget post-contingency.  However, if one assumes OPC’s final contingency amount is similar to the amount announced today in Georgia Power’s public disclosures, OPC’s budget would increase by approximately five to six percent.

OPC is performing its due diligence under the Project Adverse Events (PAEs) within the co-owner agreement resulting from the new budget forecast and Georgia Power’s decision not to seek rate recovery for these amounts. A vote on these items is anticipated late in the 3rd Quarter of 2018.

Estimated completion dates of the new nuclear units remain November, 2021 for Unit 3, and November, 2022 for Unit 4.

For more information, please see Oglethorpe Power’s 10-Q which will be filed August 10 and can be located here.

About Oglethorpe Power

Oglethorpe Power is one of the nation’s largest power supply cooperatives with approximately $11 billion in assets serving 38 Electric Membership Corporations which, collectively, provide electricity to approximately 4.1 million Georgia residents. A proponent of conscientious energy development and use, Oglethorpe Power balances reliable and affordable energy with environmental responsibility and has an outstanding record of regulatory compliance. Its diverse energy portfolio includes natural gas, hydroelectric, coal and nuclear generating plants with a combined capacity of approximately 7,800 megawatts. Oglethorpe Power was established in 1974 and is owned by its 38 Member Systems. Its headquarters are in Tucker, Georgia, an Atlanta suburb.