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Southern Co. Expects $240M In Payments Over Late Power Plant

In this June 13, 2014, file photo, construction continues on a new nuclear reactor at Plant Vogtle power plant in Waynesboro, Georgia.
In this June 13, 2014, file photo, construction continues on a new nuclear reactor at Plant Vogtle power plant in Waynesboro, Georgia.
Credit John Bazemore, File / Associated Press
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Southern Co. CEO Tom Fanning says the power company could get $240 million in damages from the builders of its new nuclear plant in Georgia.

That payment from Westinghouse Electric Co. and Chicago Bridge & Iron Co. would offset a third of the costs Southern Co. might face if its new reactors at Plant Vogtle (VOH’-gohl) are further delayed.

Southern Co. subsidiary Georgia Power recently announced that its contractors expect construction may take another 18 months. Southern Co. estimates its share of financing and ownership costs would add $720 million to its construction budget.

Fanning said Wednesday that Southern Co. hasn’t accepted the new schedule, which might be compressed.

Westinghouse and CB&I officials did not immediately return calls seeking comment. The contractors are in litigation with the plant owners.