Tuesday, May 6, 2014
Vogtle Electric Generating Plant, Burke County, Georgia. (File / WRDW-TV)
ATLANTA (AP) -- A utility company estimates that government-backed loans will save roughly $250 million while building a nuclear plant in Georgia.
Georgia Power earlier this year reached a deal to get subsidized lending from the U.S. government as it builds two more nuclear reactors at Plant Vogtle.
Private lenders would likely charge more for those loans because they have historically viewed nuclear plants as more of a financial risk than the federal government, which is supporting their construction.
The savings cited by the Southern Co. subsidiary are an estimate. The savings from the government loans will add up over the life of the loans. But for comparison, Georgia Power estimates the savings would be worth $250 million if it were paid as a lump sum in 2018.