Toshiba commits $3.68B to finish Southern's Georgia nuclear plant

|By:, SA News Editor

Southern Co. (SO +1%) opens higher, as a deal with Toshiba's (OTCPK:TOSYY +9.1%) Westinghouse subsidiary for completion of the half-constructed Vogtle nuclear power plant in Georgia lifts some of the uncertainty over the fate of the project.

Toshiba agrees to pay $3.68B to SO to help cover the costs of completing two reactors at the plant, while SO agrees not to ask for more, even if the project continues to run over budget.

SCANA (SCG +1.2%) shares also are higher, as the deal could foreshadow how things will play out at the V.C. Summer plant in South Carolina, where Westinghouse also is the lead contractor.

Despite the agreement, it is not clear if the Vogtle facility will be completed; last week, a consultant to the Georgia Public Service Commission filed a report saying that, under several scenarios, it was “not economic” to continue work on the project.

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