ga power company application part 3

of
hereby
submitted to DOE by Georgia
Power Company in confidence
and contain trade secrets and proprietary information and meet the criteria for protection from public
disclosure in
5 U.S.C. §
10
C.F.R. § 1004.11(f) By way of this notice,
th applicant hereby invokes all of the procedural and substantive protections in these provisions of law
and other applicable law
used
by DOE only
for the purpose of evaluating this application under DOE's Loan Guarantee Program
under Title XVII of the Energy Policy Ac t of 2005. If his applicant is issued a loan guarantee under Title
XVII
in connection with the submission of
this
confidential, trade secret,
or by

C.F.R. § 1004.11(f). This information
to
Federal Government agencies
of the GPC Vogtle
Bechtel Bechtel
Power Corporation
Dalton Utilities
shall not be
Operations
IRP
MOX Mixed
NEPA National
Owners Georgia Power Company (GPC), Oglethorpe Power Corporation
(OPC), The
SEIS
Supplemental
Company
SSAR
shall no t be
except
for
agencies
whose
other required reviewers shall
material
changes
Vogtle
Electric
Generating Plant (VEGP) Units 3 & 4, since GPC's Part I Department
of Energy (DOE) Loan Guarantee Application:
* GPC filed its third
* Initial hearings on the GPC
Vogtle
Expansion
Project
have
occurred
th
through
7
th
2008.
Georgia Power
o Chuck Huling, Vice President of Environmental Affairs for Georgia Power
o Joseph
o Robert Morris, Assistant Comptroller and Assistant Corporate Secretary
for Georgia Power
Unfettered
Holdings, Inc.
Georgia
* Municipal
* The Market Analysis section, D.2 of this document, expands
significantly on the
GPC's DOE
2. List of Requirements
§
§ 1.B.1
& 1.C.2
Georgia
Power
Company
GP C Vogtle Expansion Project DO E Loan Guarantee Application
This
meets
§ 1004.1 1(f). This information
agencies whose
evaluation.
(7) Estimate and methodologies used to measure project cost
§ 2.B.1
construction
& 1. C.3
(10) Description
§ 2.C.3
(12) Analysis of market analysis/pricing on the underlying product produced by
the project §
plan for the project, including debt, equity, liquidity, and funding
§ 2.D.1 & 1.E.1
for
§ 2.E.3
2.D.1
by an independent CPA,
(20) Credit history on Applicant
§ 1.E.4
§ 2.E.6
(22)
A list showing status and estimated completion date of application and approval
§ 1.B.11
time of application showing borrower's ability
to repay
confirming good standing
in this part and
be paid by revenue
N/A
Georgia
that meets the criteria
whose
use
Procurement, and Construction (EPC) Agreement data that is highly confidential and
trade secret information. Detailed
2. Legal Opinions and
concerning the project are attached as Appendices B.1 through B.4.
Georgia
information that meets the criteria for protection
from
shall not be released to persons outside
DOE,
United
Vogtle
other
required
reviewers
shall
of review and
The GP C Vogtle
of
Westinghouse
Electric
Corporation
Consortium"
once a resolution on confidentiality issues
has
been
reached.
2.
Operating
and
Maintenance
Plans
be operated and maintained by Southern Nuclear Operating
Co. (SNC), which
nuclear
units on behalf of GPC,
Oglethorpe Power Corporation (OPC), MEAG, and the City of Dalton, Georgia,
acting
through its Board of Water, Light and Sinking Fund Commissioners
(Dalton
Utilities
or
with
GPC
subsidiary Alabama
experience in
requirements will
Th e
SNC
fleet of units will be utilized in determining the spare parts
inventory.
practices
with the equipment manufacturer's
the
activated plant
requirements
processor for
site by
cessation of plant operations.
is
provided
NRC by letter dated March
28 ,
information that meets the
in
10 C.F.R. § 1004.11(f). This
to persons outside DOE,
GPC Vogtle
evaluation.
to Page 1-25:
decommissioning in 10
of the
removal and disposal of spent fuel or nonradioactive structures and
materials beyond
that necessary
determine the
NR C minimum funding requirement in January 1986 dollars for Pressurized Water
Reactors (PWRs)
funding requirement
$365,823,000 (Option 2
of the
found
Permit Application (ESPA), Rev 4 also submitted
to NR C by letter dated March 28, 2008. The Environmental Report (ER) revision
level
following
website
location
the
cost
to
decommission
each
NRC in
materials such that the owner may then
have unrestricted use
High-
level
removed from the
needed, GP C
Project has been
shall use
to
to
financial,
available, DO E would
adopt the NR C
filed with the NR C an
application
for
an
Authorization (LWA).
included an
in September
issued
Units 3 and 4
the Final Environmental
2008.
the VEGP Units 3&4 COL by January 2010.
Since the ESP
FEIS and include
an assessment of
discovered
As such, the FEIS
for the Vogtle ESP should provide all the information needed to
fulfill the requirements
of 10 CFR
material is located.
In addition,
the application
requires a complete list of federal, state, and local permits and approvals required
to site, construct, implement and
operate the project, including
construction.
2.
ESP. Additionally, this FEIS is based
not only
on site
suitability environmental
impacts, but
impacts. The
EIS for
new and significant information is identified.
No new
and significant information
has been identified
to date. As such, the FEIS issued by the NR C staff in August
2008, should provide all of the information needed by DOE to
fulfill
their
DOE,
the GPC
following information
the
format
contained
in
DOE
should
to
document. Th e
the
purpose
and
of
the site location, the site environmental, and a description of the local
environs
surrounding
the
site.
site is located on the
existing 3169
River at
nuclear
generating
units,
and have a combined net
generating
capacity
began
commercial
Wilson, a 354 MW(e),
site.
The
existing
Vogtle units and Plant Wilson occupy approximately 800 acres of the site.
The remaining
acres of hardwood
forest, and 96
east. Three small unnamed streams and several
ponds are located on the
site.
The proposed new
Vogtle Units 3 and 4 are described in Chapter 3 of the FEIS.
Vogtle Units 3 and 4 will be co-located
with the
for
AP1000
2
(See
FEIS
Figure
pumps
for
and two low
a
"stand-alone"
generator building; and, (5) the radwaste
building. Structures making up th
nuclear island include the containment building, shield
building, and the
power rating of 3400
MW(e). It
of approximately 2.35 to
4.45 weight percent uranium-235
C.F.R. § 1004.11(f). This information
DOE,
except
evaluation.
is
one concrete
natural
draft
hyperbolic
cooling
tower per unit. Each tower will be approximately 600 feet tall, supplied by
makeup flow from the Savannah River,
and will reject
These towers
intake and discharge structures
and certain support structures
such as office buildings,
spur from the Norfolk-Southern
from the Savannah
process will include
facility,
backfill, after an
bearing layer. The
borrow areas on the
construction
(EPD) for control
D. Project Location
the existing 3169
2100
feet west and 400 feet south of the center of the existing Unit 2 containment
building. Unit
The
Vogtle site is located in rural Burke County G eorgia. The nearest population
center that has
more than 25,000
the Vogtle site in
radius
of
the
site.
The
site
the Savannah River, and a rail spur runs
to
the
approvals
This
in
§
to persons
United States
Expansion
Loan
Guarantee
evaluation.
community of Girard is located approximately 8 miles to the south. Th e U.S
DOE
Savannah
River
river from the
GP C and
applies to the site.
primarily rural undeveloped land with a few homes and small
farms. The
acre Yuchi Wildlife Management Area, managed by the GDNR is
located
by a
boat landing
approximately one mile downstream of the site. The boat landing is owned and
maintained
(AQCR). All of the counties in the
AQCR are designated as in attainment or unclassified for all criteria pollutants for
which National Ambient Air
an
important
seismological, and
Site Safety
Analysis
Report (SSAR) submitted with the ESP application and in the recently issued
NR C Site
ER and
site, 175 have Black
race populations that exceed
census
minority
average in any other census
block. Based
percent of South
mile
in
Section
issues as they
relate to construction
and operation, respectively.
AP1000 Westinghouse PW R
acres. An additional 94 acres will be disturbed for temporary
facilities and borrow
outside
DOE,
of the GPC Vogtle
of review and
three alternatives.
a federally-authorized navigation channel
discussion in Section
C.6.G for
required approvals related to barge access. The site, located at River Mile 151
lies
between
components for VEGP Units 1&2 were delivered using
the Savannah River
the Norfolk-Southern Savannah to
Augusta, G eorgia with the Vogtle site. Rail could also be used
of an y
under
cooling
and other plant uses. Deep wells into the Tertiary and Cretaceous aquifers will
be used to supply the service water system, drinking water system, pure water
makeup, and fire protection systems. The Savannah
River will
draft
in
and
tabular
The
to the
5, and
and
radwaste
management,
and
requirements of the
state, local
receipt
at
this
meets
except for persons in
information only for purposes
than
served
by
the
served
by
the additional units at VEGP.
OPC, MEAG, Dalton Utilities, and some of the OPC and MEAG members
each have
analyses of future
needs for
power. Each of the VEGP Co-Owners, as part of their resource planning,
have estimated
capacity needs
in 2016,
nominal in-service date of Vogtle Unit 3. In 2007, OPC's
peak demand
comprise the
4.3% annually through
2018. At the
additional 500 to 600 MW of generating
resources each year over the next 20 years
to
to keep up
for
MEAG's
annually
through
2018.
Co-Owners estimate they will need to add or procure
about 5,000 MW between 2014 and 2018.
The
represents only
provide.
in
an overwhelming case for the need for VEGP Units 3&4 capacity.
In
summary:
* GPC
it's growing
* GP C is subject to the
state
additional
capacity that VEGP Units 3&4 would provide, and must have GPSC
approval
prior
* The state
without
state
and
* With
the additional
IRP, please
except for persons in other United States
Federal Government
evaluation.
level view
Please see
Guarantee Application
record of key
recover approved
cost recovery.
Project has signed an
with construction of a ne nuclear
unit.
More
detail
by SNC, one of the top
nuclear
having received
continuous operation. Please
Guarantee Application for more information
on SNC's nuclear operating
Part
debt securities
adequate access to capital necessary to
complete the plant. There
parties, with experience at 6 other generating
facilities. Joint
* Through the
includes support from all parts of the state of Georgia,
and all major
electric generators in
Georgia Power Company CONFIDENTIAL
the criteria for protection from public disclosure
in
shall
DOE,
except
for
persons
reviewers
purposes of review and
bases
* The
generation is a viable
country, paving
Threats
Project and
IRP statute, GPC
* GPC may be unable to find a sufficiently qualified
workforce
upon completion. GPC feels its, as well as SNC's, vast
experience
with
Part
Application for more information.
Expansion
Early orders for long lead items
will be critical to mitigating the
risk of
Many of the risks
identified abo ve are mitigated by certain provisions of the EPC
contract with the
be communicated
to the
DOE once a resolution on confidentiality issues has been reached.
[REDACTED********************************************************************************
annual report on
year ended
GPC's DOE Loan Guarantee Application.
7. Progress Reports
GPC will provide
during the
construction, start-
project.
Georgia
in
DOE,
United States Federal
the
reviewers shall use the
information only for purposes
Eligible
funds,
Southern
Company
later date,
to DOE's security in the GP C Vogtle
Expansion
Project.
expected
following
sources:
Equity -
[REDACTED******************************
Part I
Guarantee
Application
for
GPC's
equity
letter
The company anticipates
funds
provided
This page
shall
not
Vogtle
evaluation.
5.
Collateral
[REDACTED*******************************************************************************
....... .......
... ..............
Please see Section D.1 for cost substantiation for the GPC Vogtle Expansion Project
assets.
Additional
information for cost substantiation is included in the EPC contract,
and will be provided to the DOE once a resolution on confidentiality
issues has been
is a depreciation schedule
provided as collateral
[REDACTED*********************************************************************************
For the Three Months
For the Nine Months
during
construction
20,887
(256,266) (261,139)
$ 401,831
Ended
September
$401,831 $399,433
$825,725 $719,113
$5,044, respectively
(1,386) (7,430)
of
tax
relate to Georgia Power are an integral
part
of
these
provided from
pollution
control
bonds
22,197
Nuclear
decommissioning
trust
fund
purchases
(362,565)
(336,526)
portion
(22,265)
48,074
Other
(30,542)
(11,553)
part of these
Assets 2008
Construction work
Deferred
Total Assets
$ 369,396 $ 198,576
period in
2007. For
year-to-date 2008,
follows:
economy within the
of higher fuel and
net
income.
64
Wholesale
Revenues -
Non-Affiliates
the corresponding
period in
2007. For
year-to-date 2008,
energy sales in the
vary depending on demand and the availability
and cost of generating resources at
each company
with
the
IIC,
These
in
2007.
to higher fuel and
and
$201.0 million increase in the
average cost of fuel and purchased power, partially offset by a $52.2 million
decrease
For year-to-date 2008,
average cost of fuel and purchased power,
partially offset by a $7.6 million decrease
in total KWHs generated and purchased.
Fuel and purchased power
transactions do not have a significant impact on earnings since energy expenses
are generally offset by
Retail Fuel
Details of
power are as follows:
fuel expense was $859.8 million compared
to $786.0 million for the corresponding period in 2007. For year-to-date
2008,
for the third
increases were primarily due to an increase in
fuel
global
demand pressures. Th e average cost of coal per KW H
generated increased 23.0%
and 17.8% in the
third quarter and year-to-date 2008, respectively. The average cost of oil and natural gas per
KWHI
the
Non-affiliates
In the third quarter 2008, purchased power
from non-affiliates wa s $192.3 million compared to $168.4 million for
the corresponding period in
2007. For year-to-date 2008, purchased power from non-affiliates wa s
$358.0 million compared
2007.
increases in KWHs purchased from available
lower priced market
and increases in
Energy
purchases
the market cost of
system-generated energy, demand
for energy within
Southern Company system service territory, and availability of Southern Company
system
generation.
66
affiliates wa s $247.8 million
compared with $196.7
purchased.
million
average
the purchase price and
lower cost
and cost of generating resources at each company
within
Other
primarily due to an $8.1 million decrease in the
timing of transmission
expenses were $1.14
million
approved
expenses.
These
increases
were
partially
offset
operations
and
maintenance
activities.
Third Quarter 2008
(changein millions) (%
change) (change
in millions)
million compared
For
year-to-date 2008, taxes other than income taxes were $242.4 million compared with
$231.7 million for the corresponding period in 2007.
These
fees resulting from retail
Allowance for Equity
vs. Year-to-Date 2007
$3.1 17.0 $26.9 58.9
$20.9
in 2007. For year-to-date 2008,
AFUDC was $72.6 million compared with $45.7 million for the corresponding period
in
increases
to ongoing environmental
generating
(change in millions)
taxes were $237.4 million compared with $229.9 million
for the corresponding period
2008,
income taxes were $453.4 million compared with $401.0 million for the corresponding period in 2007. These
increases
increases in
state
production activities deduction
information.
Stock
Third Quarter 2008 vs. Third Quarter 2007 Year-to-Date 2008 vs. Year-to-Date 2007
(change
In the third quarter 2008, dividends on preferred and preference
stock were $4.3 million compared
with $0.7 million for the corresponding
period
on
preferred
and
preference
stock were $13.0 million compared with $2.1 million for the
corresponding
period
stock in the
fourth quarter 2007,
68
level of Georgia
Power's future earnings depends on numerous factors
that affect the opportunities, challenges, and risks of Georgia Power's business of selling
electricity.
environment that continues to
all prudently
in the near term will depend, in part, upon growth
in energy sales
new energy
conservation
price elasticity of demand, and
the rate
service area. For
FACTORS in Item
IA and MANAGEMENT'S
Item 7 of the Form 10-K.
Environmental
Matters
to
the Clean Air Act and other environmental statutes and regulations could affect earnings if such
costs cannot continue
a timely basis. See MANAGEMENT'S DISCUSSION AND ANALYSIS - FUTURE EARNINGS POTENTIAL
- "Environmental Matters" of Georgia Power in Item
7 and Note 3
New Source Review
Review Actions" of Georgia Power in Item 7
and
statements of Georgia Power under "Environmental Matters -New
Source Review Actions" in Item 8 of the Form 10-K for additional information regarding civil actions brought by the EP A alleging that Georgia
Power and Alabama
provisions of the
action involving Alabama Power, on July
24,
judgment
in favor of Alabama Power regarding the proper legal test for determining whether projects are routine maintenance, repair, and
replacement and therefore are
does
these matters
Clean Air Interstate Rule
ANALYSIS - FUTURE EARNINGS POTENTIAL - "Environmental Matters - Environmental
Statutes
7
of
the
Form
brought by certain states and regulated industries challenging
particular aspects
U.S. Court of Appeals
for the District of Columbia Circuit issued a decision vacating CAIR
in its
action consistent with
been developed in response to
numerous
federal
and state regulatory requirements, many of which, including the State of Georgia's
Multi-Pollutant Rule, remain unaffected by the court's
ruling; however, the court's decision
has
the potential to impact future decision making regarding capital expenditures, the
installation and
purchase, use, and
the court's decision cannot be
69
FINANCIAL CONDITION AND
action, including issuance of the court's
mandate, and future rulemaking and
regulatory
of
of
hour ozone air quality standard. In
March
2008,
the eight-hour ozone standard, increasing its stringency. Th e
EPA plans to designate nonattainment areas based on the
new
standard
Georgia Power's service
this time
future nonattainment designations and regulatory plans.
Carbon Dioxide Litigation
Village
of Kivalina and the City of Kivalina filed a suit in the U.S. District
Court for the Northern District of
California against
several electric utilities (including Southern Company),
several oil companies, and a coal company. Th e plaintiffs are
the
governing
is
caused by global
warming that the plaintiffs attribute to emissions of greenhouse gases
by the defendants. Th e plaintiffs assert
claims for
therefore
seeks damages
is
alleged
to
2008,
all
defendants
filed
claims. The ultimate outcome of this matter cannot be determined
at
Market-Based Rate Authority
POTENTIAL -
Item 7 and Note 3 to the financial
statements of Georgia Power
the
its final rule in Order
No. 697 regarding market-based rate authority. Th e FERC generally retained
its current market-based rate standards. Responding to a number
of
requests
of the
regulations governing
In
accordance with the order, Southern Company submitted to the FERC an updated
market
power analysis on September 2, 2008 related to its continued market-based rate authority. Th e ultimate
outcome of this matter
2008,
Southern Company filed with the FERC a revised market-based rate (MBR) tariff an d a
new cost-based rate (CBR) tariff.
Th e
"must offer"
its available energy
for sale in
auction, after considering Southern Company's native load requirements, reliability obligations, and
sales
commitments
to
auction would be
CBR tariff is designed to be an alternative means for
70
OF
OPERATIONS
conducting short-term transactions in
the wholesale markets and provides for a cost-based cap for wholesale sales of less than a year. Both tariffs
must be approved
now be determined.
Power's total annual billings
of approximately $222
as
Power is required to file for a new
fuel cost recovery rate no later than March 1, 2009.
See MANAGEMENT'S
Note
of
Fuel cost recovery revenues as recorded on
the
not a
Georgia Power's revenues or net income, but will affect cash
flow.
Nuclear
Nuclear
Projects
DISCUSSION AND ANALYSIS - FUTURE EARNINGS POTENTIAL - "Nuclear - Nuclear Projects" of Georgia
Power in Item 7 of
the
information regarding the potential expansion of Plant Vogtle.
In August 2006, Southern Nuclear, on behalf of Georgia Power, OPC, MEAG Power, and Dalton Utilities (collectively, Owners), filed an
application with the NRC for an early
site permit approving two additional nuclear units on the site of Plant Vogtle. On
March 31, 2008, Southern
Nuclear filed an application with the NRC for a combined construction an d operating license (COL) for the new units.
On April
agent
Stone &
procure, construct,
and test tw o AP1000 nuclear units with electric generating capacity of approximately 1,100 MWs each and related facilities, structures, and
improvements at Plant Vogtle (Vogtle 3
and
and 4 Agreement is an arrangement whereby the Consortium supplies
and constructs the
of certain
items provided by the Owners. Under the terms of the Vogtle 3 and
4
Agreement, the Owners will pay a purchase price that will be subject to
certain price escalation and adjustments, adjustments for change orders,
and
performance
bonuses. Each Owner is severally (and not jointly) liable
for its proportionate share, based on its ownership interest, of amounts owed to the Consortium under the Vogtle 3
and 4 Agreement. Georgia
Power's
proportionate share, based on its current ownership interest, is 45.7%. Under the terms of a separate
joint development agreement, the
on July 2, 2008, except for
allowed changes under certain
PSC certification process.
to
the
Georgia PSC on May 1, 2008 in connection with its 2016-2017 base load capacity
request for proposals (RFP). No other responses to the RF P were
received.
71
application
for the Georgia PSC to certify the project. Hearings began November 3, 2008 and a
final certification decision is expected in March 2009.
If certified by the Georgia PSC and
licensed by the NRC, Vogtle Units 3
and 4 are scheduled to be placed in
service
in
2016
and 2017,
respectively. The total plant value to be placed in service will also include financing costs for each of the Owners, the impacts of inflation on
costs,
and transmission and other costs that are the responsibility of
the
Owners.
and 4 Agreement.
upon the Consortium's failure
performance guarantees. The Owners
agreed to certain bonuses payable to
the Consortium for early completion and
unit performance. Th e Consortium's liability to the Owners for schedule
and performance liquidated damages and warranty claims is subject to
a
cap.
Th e obligations of Westinghouse and Stone & Webster under the Vogtle 3
and 4 Agreement are guaranteed by Toshiba Corporation and The
Shaw Group, Inc., respectively. In the event
of
any Owner, such Owner will be required to
provide a letter of
Th e Vogtle 3
PSC.
Vogtle 3 and 4
Agreement at any time
their convenience, provided that the
Owners will be required to pay certain termination costs and, at certain stages of
the work,
cancellation fees
including delays in receipt of the COL or delivery
of full
authority to permanently stop work, certain breaches
of
the Vogtle 3 and 4 Agreement by the Owners, Owner insolvency, and certain other
events.
Income
Act of
The
certain property acquired
or, in certain limited cases,
2009.
allowed
state
the cash flow reduction
On October 3, 2008, President Bush signed the Economic Stabilization
Ac t
2008 (Stabilization Act) into law. In addition to addressing financial
issues, the Stabilization
as well as accelerated depreciation for smart meters and smart
grid
systems.
assessing the
financial implications of the Stabilization Act. Th e ultimate impact cannot be determined at this time.
Other
Matters
litigated, regulatory
that could affect future
to certain claims and legal actions arising
in the ordinary course of business. Georgia Power's
business
regulation related to public health
and the environment.
Litigation over environmental
statements
turmoil cannot be determined at this time. See
"Sources
As
a
markets,'Georgia Power experienced no material counterparty credit losses.
Georgia
Power's
decommissioning trust
funds declined in value as of September 30, 2008. No material changes in funding
requirements related
the ultimate outcome cannot be determined at this time.
Net cash provided from operating activities totaled $1.3 billion
for the first nine
period in
in
first nine months of 2008 is
primarily due to higher
retail operating revenues. Net
cash used for investing
activities totaled $1.5 billion
the first nine months of 2008 primarily due to gross
property additions
activities totaled $523.6 million
2008 compared to $203.3 million
for the corresponding period
was primarily
due to the issuance of notes payable and the timing of
financings in 2008 compared to 2007.
Significant balance sheet changes
for the first nine
$1.4
See MANAGEMENT'S
and
in Item
Power's capital requirements for its
construction
program,
as
dividends, leases, purchase
In addition,
4 Agreement, as described under
FUTURE EARNINGS
of Directors approved
revisions to Georgia
Power's capital budget of $600 million in 2009 and $700 million in 2010, for a revised estimated total construction
program of
Power Board of Directors
of a revised capital budget of approximately $2.9 billion for 2009 and
$2.6 billion for 2010. The increases are primarily
a result of changes
controls at
Plant Bowen
McDonough, as well
as other project
Company
in early
from
these
environmental statutes
the cost and efficiency of construction labor, equipment, and materials;
and the cost and availability
of capital. In addition,
related to capital
expenditures will be
in
the
Southern
OF
amount, type, and timing of
any
future
financings,
if
and other
- FINANCIAL CONDITION AND LIQUIDITY - "Sources of Capital" of
Georgia Power
in Item
Georgia Power's current liabilities frequently exceed current assets because of the continued
use of short-term debt as a funding source to meet
scheduled maturities of long-term debt
as
well
as cash
needs which can fluctuate significantly du to the seasonality of the business. To meet
short-term cash
2008 approximately $363.8 million of
cash
and cash equivalents
and approximately $1.3 billion of unused credit arrangements with banks. See Note 6 to the financial statements of Georgia Power under "Bank
Credit Arrangements"
10-K and
(F) to the Condensed Financial Statements under "Bank Credit Arrangements" herein
fo r additional information. Of the unused credit arrangements, $225 million expire in 2009 and $1.1 billion expire in 2012. Of
the
facilities
that
expire in 2009, $40 million contain provisions allowing two-year term
loans
executable
credit
facilities,
as
commercial
totaled $666.4
Power's required purchase of $76.6 million of
variable
rate pollution control
revenue bonds that were tendered by investors. Subsequent to September 30, 2008, Georgia Power converted
$104.6
control revenue bonds to
$75 million of the bonds that were tendered
by investors. The net effect
of
these
transactions
decreased
cash needs through a Southern Company subsidiary
organized to issue and sell commercial paper and extendible commercial
notes at the
request and for
other
Southern
million
for
working
programs, lines of credit, and
cash.
Credit
any credit arrangements that would require material
changes
in
credit rating
are for physical electricity purchases and sales, fuel purchases, fuel transportation
and
management and for construction of new generation.
At September 30, 2008, the maximum
potential collateral
requirements under these contracts at a BBB- or Baa3 rating were approximately $28 million. At September 30,
2008,
the
at a rating below
in
in the event that one
or
credit rating
of credit, or
portion of outstanding indebtedness
the impact
on financing
follows:
natural gas
positions. These
changes are
are
recovered
through
the
recognized in the
related
derivative
are
as
follows:
September
Years
of SFAS
No. 157
to increase
consistency and
Condensed
Financial
using prices
Senior
details.
auction
rate pollution control
revenue bonds were converted to fixed interest rate modes and approximately
$487 million
were
to
daily floating rate modes. Georgia converted $98 of its variable rate pollution
control revenue
bonds to
fixed interest rate modes. In addition, Georgia Power incurred obligations related to
the
million of
pollution control revenue bonds for Georgia Power's Plant Hammond Project. At September 30 , 2008 the trustee held $30.4 million of the
proceeds, which will
be transferred to
purchase a approximately million of variable rate pollution control revenue bonds that were tendered by investors. Also in
September
Subsequent to September 30, 2008, Georgia Power converted
approximately $104.6
fixed interest rate mode.
Also subsequent to September 30,
2008, Georgia Power remarketed a total of approximately $75 million of
variable rate pollution control revenue
bonds that were
tendered by investors.
In addition to any financings that may be necessary to meet capital requirements
and contractual obligations, Georgia Power plans to continue,
when economically feasible, a program
to retire higher-cost securities and replace these obligations with lower-cost capital if market conditions
permit.
78
USE OF DATA
The data and information contained on pages 2-5 of this document and
any electronic file which
been submitted to DOE by Georgia
Power Company in confidence and
contain trade secrets and proprietary information
and meet the criteria for protection
from public disclosure
10 C.F.R. § 1004.1
protections in these
The data and
used by DOE
only for the
purpose of evaluating this application under DOE's Loan Guarantee Program under Title
XVII
of 2005. If
Title XVII of the
in
connection
data
and information shall continue to be claimed as confidential, trade secret, and proprietary
unless and until
altered in
or by other
data
outside DOE, except
Georgia,
is
U.S.C. § 552(b)(4)
,18 U.S.C.
Vogtle Expansion
Project Loan
Guarantee Application.
DO E
and other
States
GPC Vogtle Expansion
as
a
proprietary information
disclosure in
5 U.S.C.
to Section 3.6(b) of
Units
Ownership
Participation
Agreement
acting by
Electric Authority
the representations
(except to the
representations
to the
laws of the United
documents and

of review
and evaluation.
applicable to the subject transactions; we express no opinion as to the statutes, administrative
decisions,
and
rules
and
Based upon the foregoing, and subject to the limitations, qualifications, assumptions,
exceptions and other matters
Georgia, duly and
validly organized and
(2) Dalton has
performance of the Ownership Agreement by all requisite action; and,
(3) Dalton
of
Dalton,
enforceable
terms
law
as
of
rendering
come to our attention or any changes in facts or
laws
which may hereafter occur. This opinion may be relied upon only by GPC,
OPC, and
or otherwise referred to by any
other
Very
yours,
MIT
Bell
NOTICE ON DISCLOSURE AND USE OF DATA
The data and information contained on pages 2-4 of this document and any electronic file which hereby
forms
DOE
information and
in U.S.C. § 552(b)(4), 18 U.S.C. § 1905,
and
hereby
invokes all of the procedural and substantive protections in these provisions of law and
other
respect
to this data and information. Th e data and information shall be used by DO E
only
under
2005. If this applicant is issued a loan guarantee
under Title XVII
in connection with
the submission of this Application, this data
and information shall continue to be claimed as confidential, trade secret, and proprietary unless and until
such claim
data
18
Th e data and information contained on pages 2-5 of
this document and any electronic file which hereby
forms a
the have been to Power in and
contain trade secrets and proprietary information and meet the criteria for protection from public
disclosure
hereby invokes all of
the procedural and substantive
protections in these provisions of law and other
applicable law with respect to this data and information. The data and information shall
be used by DOE
only for the purpose
of evaluating this application
of
If this applicant is issued
a loan guarantee under Title XVII of the
Energy Policy Act of
2005 as
a result of or in connection with the submission of this Application, this data
and information shall continue
be claimed as confidential, trade secret, and proprietary unless and
until
such claim is withdrawn or altered in the final loan
guarantee agreement or by
data obtained
outside DOE, except
Federal Government
E Y S
Fund Commissioners
Power Company, a
Agreement (the
dated as of April 21, 2006, by and among GPC,
Oglethorpe
Power
corporation formed
State of Georgia ("OPC"), the Municipal Electric
Authority of Georgia, a
of Georgia
Water, Light and Sinking Fund Commissioners
("Dalton" and together with MEAG, OPC and GPC, the "Co-Owners"). This opinion
is
being
furnished pursuant to Section 3.6(b) of the Ownership Agreement and is subject to the
qualifications, exceptions, assumptions and limitations stated herein.
This opinion
letter is limited by, and is in accordance with, the
January
in Corporate
Section of the
this
opinion
letter
* H O N G KONG
* LONDON
N E W A R K
- N E W YORK * N O R F O L K
- R A L E I G H
RICHMOND
CORNER
W A S H I N G T O N ,
D.C.
vogtle
additional
This
information
States
of the GPC
Vogtle Expansion Project
Loan Guarantee Application.
have
also
making such examination, we
have assumed the genuineness
legal capacity
of all natural persons executing documents, the authenticity of all documents
submitted to us as
of all
expressed, that:
all
requisite power and authority to enter into and perform the transaction evidenced
by
the Ownership Agreement has
by each party to the transaction (other than GPC, to
the extent we express
constitutes
(iii) each party to the transaction evidenced by the Ownership
Agreement
in
taking any action in relation to the Ownership Agreement will comply with
any
standard
all events in compliance
normally applicable
below, we have assumed
to
express opinion
except
Vogtle Expansion
representations or other information
the rendering
the effect of the
federal laws of the United
States and the internal laws of the State of Georgia. We express no opinion with respect to the
applicability or the effect of federal laws of the United States governing any or all of
taxation,
as to compliance
by any parties
herein
with
any
as
are of the opinion that:
1.
under
into and perform
Agreement
4.
GPC Vogtle Expansion Project
The data and information contained
on pages 2-8 of this document and any electronic
file which hereby
been
Company
in confidence and contain trade secrets and proprietary information and meet the criteria for protection from public disclosure
in 5 U.S.C. § 552(b)(4), 18 U.S.C. § 1905, and
10
C.F.R. § 1004.11 (f) By way of this notice, the applicant
hereby invokes
all of
data
and information shall be used by DO E only for
the purpose of evaluating
If
this
of 2005 as a result of or in connection with
the
submission
information shall continue to
proprietary unless and until such claim is
withdrawn or
the Government's right to use or
disclose
the criteria
information
outside
DOE,
except
States Federal
Government agencies
whose review is required for approval of the GPC Vogtle Expansion
Project
Loan
only for purposes
and discharge
Certificate of
shall use the information
Expansion Project
Loan Guarantee
Application. DOE
TRADE SECRET
§ 552(b)(4),
TRADE
SECRET
5
Expansion Project
Permits
DOE, except
agencies
for
TRADE
SECRET
DISCLOSURE AND USE OF DATA
The data and information contained on pages 2-99 of this document an d any electronic file which
hereby
forms a part of the Application have been submitted to DOE by Georgia Power Company in confidence and
contain trade secrets an d proprietary information and meet the criteria for protection from public
disclosure
and
10 C.F.R. § 1004.1 l(f) By way of this notice, the applicant
hereby
of law and other
applicable law with respect to this data and information. Th e data and information
shall be used by DO E
only for the purpose of evaluating this application under DOE's
Loan Guarantee Program under Title
XVII
of the
Energy Policy Act of 2005. If this applicant is issued a loan guarantee
under Title XVII of the
Energy
Policy
result
of
or
in
this Application, this data
and information shall continue to be claimed as confidential, trade secret, and
proprietary
loan guarantee agreement or by other written communication
from Georgia Power Company. This restriction does not limit the Government's
right to use or disclose
data obtained
the
Application
have
contain trade secrets
and proprietary information
and 10 C.F.R. § 1004.11(f) By wa y of this notice,
the applicant hereby
this
application
under
Ac t of 2005.
under Title XVII
as
guarantee
agreement
or
by
trade
disclosure in5
This page contains confidential trade
secret and proprietary information that meets the criteria for protection from public disclosure in5
U.S.C. § 552(b)(4),
This
to persons outside
approval of the
GPC Vogtle Expansion Project
Loan Guarantee DO E and other required reviewers shall use the information only for of and evaluation.
Table of Contents
.........
...............................
protection
from
C.F.R. § 1004.11(f).
persons
persons inother United States Federal Government agencies whose
review is equired for approval of the GPC Vogtle Expansion Project
Loan Guarantee Application. DOE
and other required reviewers
C
Celsius
CC S Component Cooling
Authority
of
Georgia,
CV S Chemical an d Volume
Control
System
of
Water,
Dalton
Utilities.
DD S
Data Display
This page contains confidential trade secret and proprietary information that meets the criteria for protection from public disclosure in 5
U.S.C.
and 10 C.F.R. § 1004.11(f). This information shall not be released
to persons outside DOE, except for
persons inother United States Federal Government agencies whose review is required for approval of the
GPC Vogtle
use the information
and evaluation.
FERC Federal Energy Regulatory
GDPS
GFE Generic Fundamentals Exam
GPC Georgia Power Company
HVAC
Heating,
Ventilation,
km
Kilometer
km
2
LOCA
Loss
LTOP
Low
Temperature
m Meter
and proprietary
from
shall not be released to persons outside DOE, except
for
Project
Loan
Guarantee
of review and evaluation.
Maintenance
OCS
PA P
PWR Pressurized
Report Independent Engineer's Report
RF P Request for
RUS Rural Utilities Service
RX S Reactor System
SCDHEC
Control
SCDNR
Company
SNC Southern
USACE United States
10
of
USFWS
Service
USGS
U.S.C.
§ 552(b)(4),
U.S.C.
§ 1905,
information that meets the criteria for protection
from
public
18 U.S.C. § 1905, and 10 C.F.R. § 1004.11(f).
This information shall not be released to persons outside DOE, except for
persons inother United States Federal Government agencies whose review is required for approval of the
GPC Vogtle
1.1 Project History and Current
Status
began in 2004
consortium
for
new
support of the GPC's development control, and intensified after the
2005 passage of the
incentives
for
* 2004:
* January
filed with NRC
included ne w
nuclear units as a preferred generation option for the 2016-2017 timeframe
* August
2007:
(COLA) submitted
an d
GPC, acting
as agent
generating
capacity
beginning
RF P
4
* August
that meets the
disclosure in 5
U.S.C. §552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. § 1004.11(f). This information
shall not be released to
persons
outside
other required reviewers
necessary regulatory
reviews. These
Upon successful completion of these regulatory reviews, construction on VEGP Units
3 & 4
is expected to commence. This process is anticipated to include the pouring
of
first
and
commercial
Unit
3. Unit 4 will follow approximately one year behind the Unit
3 schedule.
Georgia
and
is
well
as
million
159 counties. GPC is the largest of the
four Southern Company Operating
and
July 2006,
subsidiary
of
Company,
U.S.C.
§ 552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. §
1004.11(f). This information shall not be released to persons outside DOE, except for
persons inother
United States Federal Government agencies whose review is equired for approval of the GPC Vogtle
Expansion
Project
shall
and
evaluation.
$1
emissions
more than $4 billion in emissions control technologies. GPC is
also
an
active
computer software
(NOx)
emissions,
improves the performance of fossil fuel-fired plants and reduces the amount of
coal its
for
customer
been cited on
more
than
$4 billion in transmission an d distribution (power lines) since 1991
an d
GPC
has
development.
capital investment
projects and
into
Georgia
Economic Development organization was ranked
as one of the best in the world for
the ninth straight year by Site Selection magazine. GPC's
Georgia Power Foundation
has contributed more
the
company
an array of environmental
controls over
emissions. GPC is also building an d enhancing habitats
for
wildlife
numerous company-supported
GP C
Georgia. The company
shoreline
facilities, the
company leases about 30,000 acres of prime hunting land to the state of
Georgia for
Wildlife
Resources
contains confidential
trade secret and proprietary information that meets the criteria for protection from public disclosure in 5
U.S.C.
§ 552(b)(4), 18 U.S.C.
§ 1905, and 10 C.F.R. § 1004.11(f). This information shall not be released
to persons
for
persons in other United States Federal Government agencies whose review is required
for
approval
of
Expansion Project
Loan Guarantee Application. DOE and other required reviewers shall use the information
only for
As discussed previously, GPC is a
wholly owned subsidiary of Southern Company,
which is
a
large utility holding company and parent of the Operating Com panies,
Alabama Power, Georgia
Power, Gulf Power,
to over four million
southeastern
miles of
spanning parts of Alabama, Georgia, Florida, and Mississippi. The size of Southern
Company's service territory
southeastern United
approximately 26,000 miles
Company is also the parent of
Southern Power, which is also an operating
public utility company. Southern
Southern Company also owns
Southern Nuclear, Southern
which provides
Georgia
surrounding
TV,
and
Internet
state of Georgia. MEAG
through
its
distribution systems across
utilizes a transmission
all
Power
also
issues at
the state
its
through two
safety consultation,
joint purchasing
and web-based
representative
Participants signed
generation
from
the
new
Vogtle
put in service.
5
U.S.C.
§ 552(b)(4),
U.S.C. § 552(b)(4), 18 U.S.C. § 1905,
and 10 C.F.R. § 1004.11(f).
This information shall not be released to persons outside DOE, except for
persons inother United States Federal Government agencies whose review is required for approval of the GPC Vogtle Expansion Project
Loan Guarantee
shall
use
the
information
and evaluation.
S&W, a subsidiary of
the Shaw Group, Inc, is a leading global constructor, and will be
engaged the business of
with WEC, S&W
Application. In July 2000, the assets of S&W were
acquired by
is
a leading global provider of technology,
engineering, procurement, construction,
of
services company.
power
Shaw delivers
Energy and Chemicals, Maintenance, Fabrication
an d Manufacturing
an d investment
industrial an d
social infrastructure systems,
an d household
has about $11 billion
and recorders,
U.S.C. § 552(b)(4),
for
approval of the
Loan Guarantee DO E and other required reviewers shall use the information for review and evaluation.
1.2.3 Constructor
SNC, a wholly owned
subsidiary of Southern C ompany, is engaged in the operation of
nuclear power plants
on behalf of
Southern Com pany
nuclear facilities owned by other
subsidiaries of
combined
to
provide
more
than
and
Georgia.
SNC
Plant
Units 1 an 2 and
the Joseph
three plants is in excess of 6,000 megawatts
(MWs). Additionally all three SNC plants
are
construct and operate
of
the
for hold these COLs, to operate the facilities on
each
authority,
manage all aspects of plant construction and
operation including but not limited to
management
area,
cost
effectiveness
performed
appropriate
potential
terms
vendors;
preferred
choice for the first unit(s). The following technologies were reviewed:
* The Westinghouse
throughout
5
Federal Government agencies
state of design,
nuclear technology. At
intentions
provide
to support
aggregate principal
provides for technically feasible projects; (2)
is consistent with the
on
the
VEGP
Units
review of the
VEGP Units 3 &
or environmental issues which
would
appear to affect the viability of the Westinghouse AP1000 design with respect
to it
being installed
should
by SNC.
and operations issues,
SNC's review of
GPC and
Group)
including
various
materials
the
U.S.C.
be
except for
persons in other United States Federal Government agencies whose review is required for approval of the GPC Vogtle Expansion
Project
Loan
and evaluation.
The Westinghouse
located in Burke County, Georgia, within
the existing
Electric Generating
Plant
(VEGP).
The
VEGP
property is owned by GPC (GPC), OPC, MEAG, and the city of Dalton
(Dalton
Utilities).
The
(26 mi) southeast of
(Units 1and 2)
persons inother
reviewers shall us e
evaluation.
site
of Unit
2 containment
building. Unit 4 would be located approximately 800 ft west
of Unit 3.
residents is Augusta. Figure 2 shows the
location of
an 80-km
the
to
to
the
approximately 1282.5 ha (3169 ac) of land,
and it
Savannah
information
that
meets
the
boundary.
Figure 1,
that
in
5
§
Government agencies whose
of
only for
Figure 2, The VEGP Site and the 80-km (50-mi) Vicinity
Page 22 of 98
3 &
4
trade
secret
building.
The
803-km2
This
information
shall
not
Government
only for
ft)
above
mean
sea
level
(MSL).
The
disclosure in
This information shall not be
released to
persons outside
GPC
and evaluation.
are wetlands. Burke County is not
within the
portion of
Act.
1 and 2
has two 500-
kV lines an d four 230-kV transmission lines in four rights-of-way. An
additional
offsite power
The
VEGP site is shown in Figure 3.
The Scherer
VEGP site to Plant Scherer,
north of Macon,
an d 46 m (150
ft)
up to
120 m (400 ft) wide in some locations. Th e
Thalmann
right-of-way generally runs to the south of the
VEGP site to the West Mclntosh substation north of Savannah, Georgia.
Th e
Thalmann right-of-way is approximately 256 km (159 mi) long and
46 m (150 ft)
wide. The South Augusta right-of-way contains three 230-kV transmission lines.
The right-of-way
site
and Augusta
Newsprint substations. Two lines run approximately 31 km (19 mi) to the Goshen
substation in a 83.8-m (275-ft) wide right-of-way. A third line runs 27 km (17
mi)
in
km
to
125-ft)-
(SCE&G)
contains a
transmission line. The right-of-way runs north and east for 7.2
km (4.5
27 km (17
of the right-of-way in Georgia is 38.1 m (125
ft) wide; the portion in South
Carolina is 30 m
2 and
highways, parks,
wildlife refuges,
installations in proximity
an d 12
VEGP site.
in Burke, Columbia,
1.
Page
25
of
98
SOUTHERNA Proposed Nuclear Units - Vogtle Units 3 & 4 Engineer's Report
COMPANY
for protection from public disclosure in
5
review is required
Expansion
Project
COMPANY
from
public
be released to persons outside DOE, except for
persons in other United States
Federal
of the GPC
required reviewers
Comparisons of VEGP Horizontal
5%
Damping
1.00
0.90--
0.80
0.60.
0.4_
FRS_..
0.10
the low hertz case,
containment. On the high end, some additional
relay
the AP1000 design.
The
site soils and bedrock are divided into five strata (Upper Sand Stratum,
Marl
the
two
limestone (Utley
Sand
Stratum
Blue Bluff Marl.
solution
channels,
the ESP and
above the Dunbarton Triassic
existing
grade,
based
on
the
borings
completed
during
the
ESP
and
COL
subsurface
investigations.
Deeper
localized
excavations
will
be
required
released
to
persons in other
Loan Guarantee
Application. DOE
E-
(BARNWELLGROUP)
-(LISBONFORMATKIN)
ISTEEL REEKFORMATION)
outside
DOE,
for
purposes
is
expected
lowest in the winter
will, under normal circumstances
of consumptive water
operation/cooling tower
two-unit evaporative
boating in summer,
when river us e is at its highest, even during extreme low flow
conditions.
downstream of the
underlain by
can be
grained materials, resulting
aquifer is
aquifer is comprised of
confined
of
Tertiary-age
unconfined. Recharge to the Cretaceous an d Tertiary aquifers
occurs in their outcrop areas north of the VEGP site. These aquifers
discharge to
the Savannah River and to subaqueous outcrops along the Continental Shelf.
Recharge to the Water Table aquifer occurs by infiltration of
precipitation.
incisions.
Present
primarily municipal,
from
the Cretaceous
aquifer. Apart from water withdrawals for VEGP Units 1 and 2,
the immediate area near the VEGP site has mainly
domestic
to supply VEGP Units 3 and 4 will be obtained
from wells
use operations
could be operated under the existing groundwater
permit. Fo r Units 3 an d 4,
groundwater consumptive
gpm. However,
for non-normal
operations.
Off-normal
significant.
that meets the criteria for protection from
public
information
persons
outside
DOE,
except
for
persons inother United States Federal Government agencies whose review is equired for approval of the GPC
Vogtle
shall us e the information
only
the ESP processed
selected in part,
because it was a large site with two existing nuclear units in
operation. With the existing
amount of
data
was
available
that could be used along with the field data collected specifically for
the new units 3 and 4. The infrastructure supporting the existing units can easily be
expanded to accommodate the additional units and represents a significant benefit
over an
and extensive plant
on
safety
features
that
rely
such as
Safety
systems
component
and
functions
to
be
"safety-
related."
safety criteria an d
AP1000 Design
goals established for advanced reactor designs
and
for
achievable (ALARA). Exposure
design.
years.
prior to the start
to
remove
sufficient
§ 1004.11(f).
This
information
the other
from
protection
and
separation
equipment
§ 1004.11(f). This
to
whose review is required for approval of the GPC Vogtle
Expansion Project
and evaluation.
2.2.2.3 Additional Support Buildings
equipment
island in the auxiliary building
and to
the radiological
physics
control area
as well as personnel support facilities such as locker rooms.
The building
also contains the non-1E ac and dc electric power systems,
the
equipment
The annex
building includes
building.
equipment hatches of the containment building for personnel access
during outages and for large equipment entry and exit. The building
includes a hot
equipment.
two
identical
backup
power
for plant operation in he event of disruption of normal
power sources. No
Page 38
of 98
sheet pile
approximately
1000
of
meets
disclosure
10 C.F.R.
Federal
Loan Guarantee Application. DOE
of two heat transfer circuits each with a
single hot
legs, a steam generator, and two reactor coolant
pumps installed directly onto the steam generator; this eliminates the primary
piping between
barrier
against
are similar
to those
provides
Page 40 of 98
that meets
rack, which
includes integral
basis enrichment.
steam generator,
from
of the GPC
for power
generation. The
welded overlay. The
are no reactor
vessel p enetrations
The
core
two major assemblies
The reactor internals provide
rods, and gray
AP1000
plant.
The steam generators operate on all volatile treatment secondary side
water chemistry. Steam generator design
includes
full-depth
hydraulic
expansion
of
broached tube support
margin.
information that meets the
C.F.R. § 1004.11(f).
approval of the GPC Vogtle Expansion
Project
for of and
functions:
steam generator.
environment) is
provided by
provided by manual
and automatic valves.
* Components within
turbine system provide backup
and
feedwater
the steam generator and venting of
steam
from
2.2.3.4.5 Pressurizer
steam
volume
is
2100 ft3 (59.5 m3).
generator.
Page 43 of 98
disclosure in 5
secret and
for protection
be
released
persons inother United States
GPC
and evaluation.
connected
to
can
located
in
the
RCS.
RCS pressure reduction.
is connected
HX protects
The PCS
and IRWST
the containment.
information
that
in 5
Government agencies
The PXS provides pH adjustment of water flooding the containment
following
ultimate heat sink
the plant. The
PCS effectively cools
exceeded.
atmosphere. Heat is removed from the containment
vessel by continuous
The water drains by
shield building.
Natural convection
trade secret and
pressure
protection from public disclosure
persons outside DOE, except
Government
agencies
oxygen
and
pressure
testing
primary side
water
CVS
lines
penetrating
The CVS provides termination of an inadvertent RCS boron dilution
by
The CVS
The RNS includes the
during
normal
operation.
for
U.S.C.
10
C.F.R.
§ 1004.11(f).
This
DOE, except for
persons in other
Government agencies whose review is required for approval of the
GPC
only for
the reactor
leakage.
* Post-accident
PXS.
actuation of the
of the
U.S.C. §
552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. § 1004.11(f). This information shall not be released
to persons
below.
rHyperbolic
the
blowdown
would
WLS.
and
proprietary
information
that
U.S.C. § 552(b)(4),
to
persons
outside
DOE,
whose review is required
review and evaluation.
gas cooler,
two activated
sampling subsystem. The radioactive fission gases
entering
the
from the CVS letdown
filtration
wastes generated as a result of normal plant operation, including
anticipated
The instrumentation and control (I&C) system design for AP1000
integrates individual
arranged in
simplified structured design.
operators
operations and control
display and monitoring
an d
data
monitoring functions are the protection an d safety monitoring system (PMS),
the
plant control system (PLS), the special monitoring system (SMS), the in-core
instrumentation system
means of initiating the
features. The hardware and software used to
implement the DA S are different from the hardware an d software used
to
implement
the
protection an d safety monitoring system. The DA S is included
to meet the
probability
transient
an d common mode failure of the protection an d safety monitoring. The
protection
provides
system includes the complete operational
scope of
the
With the
of the Protection
an d Monitoring System (PMS), the Plant Control System (PLS), the
Diverse
Actuation
Processing
an d the
Report
M
secret and proprietary information
in5
U.S.C. §
552(b)(4),
18
U.S.C.
§ 1905,
criteria for protection from public disclosure in5
U.S.C. §552(b)(4),
shall not be released to persons outside DOE, except for
persons inother
GPC
can
maintain it in a
banks. One
bank is sized to supply
power to another smaller set of selected safety-related loads for at least 72 hours
following a design
basis event (including
period following a design basis
accident, provisions are made to connect an ancillary ac generator to the Class
1E voltage regulating transformers (Divisions B and C only). This powers the
Class 1E post-accident monitoring
Divisions B
to VEGP Units 3 & 4 and is connected into a
transmission
grid
transmission grid
via the 230/500 kV switchyard. Unit 4 is tied into the 500 kV
transmission grid
2.2.9 Safety Design Basis of Principal Nuclear Systems
The
accident mitigation
damage probabilities while
integral to
capable of
defense-in-depth ensures that
limits.
and
5
for
persons in other United States Federal Government agencies whose review is required for
approval
and other required reviewers shall use the information only for
purposes of
to
core
basis events assuming the most
limiting single failure, no operator action, and no onsite and offsite ac power
sources.
is
diversity exists, for example,
in
the residual heat removal function. The passive residual heat removal heat
exchanger (PRHR
HX ) is
heat during a
PRHR HX ,
2.2.9.5 Nonsafety Systems
for reducing
the potential for events leading to core damage. For more probable
events,
the
likelihood
drain the IRWST
promotes retention of the
assessment of containment
phenomena.
Accidents)
water cools
that support
systems
OMP
primary
documents
reviewed
include
and
10
C.F.R. § 1004.11(f). This information shall not be released to persons for
persons in other
United States Federal
DO E
and other required reviewers shall us e the information only fo r purposes of review and
evaluation.
that will enable
requirements, and will
National Environmental Policy Act (NEPA). DOE guidance indicates that DOE
will
NRC pursuant to 10 CFR 51 , and any
environmental analyses prepared
NRC in support of the license applications.
Further, DOE indicates that if a project sponsor is invited to negotiate after the
preliminary technical, financial,
appropriate NRC EIS is available, DOE would adopt the NRC
EIS.
4,
a
Final
use. It is important to note that both the ER
and FEIS address
the environmental impacts associated
the
prepare the site.
reports
phases
The 3,169-acre VEGP
site is bounded
site property. The
will apply
on the
Plant
land, and
undeveloped land.
ponds are
criteria for protection from public disclosure in5
U.s.c. § 552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. §
1004.11(f). This information shall not be released to persons
outside DOE, except
the GPC
and
and
evaluation.
25
The topography
of vicinity
sea
site
property is atop the
river bluffs and outside the 500-year floodplain. The Savannah River 100-year
floodplain ranges from approximately 100 to 800 feet wide at the VEGP site.
The
floodplain is separated from the
rest of the VEGP site by steep bluffs along virtually all
of the
Georgia EPD Designated
Habitat Council, a non-profit, Washington D.C. based wildlife organization. The
certification considered
and is reviewed on 3 year intervals.
The
Georgia
farms.
The
crossroads
community of Telfair Woods is approximately 5 miles southwest of VEGP.
Girard
communities. GPC
and
Wildlife
Management Area (WMA) managed by Georgia Department of Natural Resources
(DNR) for public hunting, is
adjacent to VEGP property. Primitive camping is allowed
on the Yuchi WMA. No other
recreation areas
of the soils in
was farmland in 2005. Of that 41 percent, 48 percent
was in cropland
42 percent
was in woodland. The largest money crops in the county are cotton
and
cottonseed,
and
from
cows.
classifications exist.
restricted
River
industrial areas within
of
secret
and proprietary
information that meets the criteria for protection from public disclosure in5
U.S.C. § 552(b)(4),
except
for
Government
agencies
Vogtle
for
of its tributaries, forms
of
the
Th
following
system:
River
Mile
River is regulated by a
series of
a
chain
along
acre-feet of
2,510,000 acre-feet of gross storage
2.3.4 Groundwater Resources
Plain sediments. The hydrogeologic
coarse-grained materials
resulting in a multiple
on
the
VEGP
site
from
all of which
through Quaternary
deposits, is
that
public
Government agencies
whose review is required for approval of the GPC Vogtle Expansion Project
DO E and
Groundwater wells
water system, fire protection, the plant demineralization system, and the potable water
system. Existing wells
day
3140 gpm for the
regional groundwater
groundwater use.
2.3.5 Description
of Facility
The 3,169
miles
to
Units 1and 2 are Westinghouse pressurized water reactor (PWR) plants
licensed by the
NRC in 1987
unit
Wilson, a
owned
has
a
common
units share
and
fuel
per
unit),
treatment building,
a switchyard,
site
was
construction permit
units
2 plant complex. The new
units
will be in approximately the same area proposed for the original Units 3
and 4. Most of this area
has already
pine
trees.
The
area
Unit
2
containment.
for four,
intake
trade secret
U.S.C. §552(b)(4),
This page contains confidential trade secret and proprietary information that meets
the criteria for protection from public disclosure in5
U.S.C. §552(b)(4), 18
U.S.C. § 1905, and
persons inother United States Federal Government agencies whose review is required for approval of the GP C Vogtle Expansion Project
Loan Guarantee
of and
technical, regulatory,
and 4. The
significant and the proposed EMS approach to environmental compliance meets
and
2.3.8 Operation
and
between
impacts
than in construction. Impacts to land use, wetlands, threatened and
endangered species, and
and
operating
monitoring points.
environmental
compliance record for the existing Vogtle units and expects to meet or
exceed that standard for Units 3
and
4.
During
performed extensive evaluations of the
effect
particularly
on
SMALL
Make-up water will be taken from
the
Savannah
two units. (This is based on maintaining two
cycles of concentration in the cooling
tower.)
be operated
lower cycles of
suspended solids in
the river water. The pumps will be installed in a new intake structure
located
upstream
VEGP
units.
The
discharge
lost. When the
evaporation is
be highest in
the
local
communities.
Environmental
regulators
from
federal
agencies
such
that meets the
and 10 C.F.R.
persons
outside
DOE,
Loan Guarantee
and
other
required
reviewers shall us e the information only for purposes of review
and
evaluation.
Based on this examination, SNC concludes that the process is
comprehensive, considerate of input
we conclude that
construction,
and
are
considered in the context of the societal benefits that
result from the project. Further, our evaluation has not identified any issue that would
prevent or preclude
under
the suitability
of the
of 10
the
third quarter of
In
March
2008, Southern Nuclear also filed for an application for two COLs for Vogtle
Units
3
a construction permit
current
under
NRC
review.
in the third quarter
103 COLs
at
adjacent to the existing Vogtle Units 1 and 2 in
Burke
passive advanced light water reactor plant provided by Westinghouse
Electric Com pany,
the AP1000 design certification
the necessary
Byproduct, source,
and
special
nuclear material shall be in the form of sealed neutron sources
for reactor startup,
restriction
fuel and
also requires
environmental
permits, and
regulations,
Page
that meets
the criteria
U.S.C. § 552(b)(4), 18
U.S.C. § 1905, and 10 C.F.R. § 1004.11(f). This information shall not be released to persons outside DOE,
except for
of the GPC Vogtle Expansion Project
Loan DO E and other required reviewers shall us e the information only for and evaluation.
Four regulatory
GPC.
These
are
the GPSC, the FERC, SE C and the NRC. GPC works with these
agencies to obtain the necessary certifications
and to
provide the
necessary reporting
with
seeking an order
certifying the new units. If certified, GPC will be assured of the
recovery of the prudently
2.4.1 Environmental
designed, licensed,
local laws, regulations,
construction
and
operation
many of the required permits and
approvals have no t yet been obtained, they
are either planned, in progress,
or
have
are provided in the Environmental Report (ER)
prepared by Southern Nuclear (SNC), the NRC Final Environmental
Impact
Statement
(FEIS),
NUREG
3) contain a summary of al l permits, approval,
and plans identified
an d operation of Vogtle Units 3 an d 4.
The
Table
§
5U.S.C. §
552(b)(4),
reviewers shall use the information only for purposes of
review and evaluation.
permanent air
in other United
10
C.F.R.
§ 1004.11(f).
of review and
Report
for protection from public disclosure in 5 U.S.C. § 552(b)(4), 18 U.S.C. § 1905, and 10
C.F.R. § 1004.11(f).
persons in other
United States Federal Government agencies whose review is required for approval of the
GPC Vogtle
shall
use
and
evaluation.
Table
2
Agency Date Required Issued
Demolition Notification GDNR/ 10/2008 Various N/A SN C First notification submitted in 10/2008
Burke Co
N/A
Permit
applicable
pursuant
TBD
is
unlikely
do not have plan;
Management Plan
plan unlikely
for 3
and 4
SPCC Plan - Operation TB D 2015 SN C Revision of existing Unit 1&2 Plan
SPCC
that
meets
the
criteria
U.S.C.
This information
whose
us e the information
and evaluation.
2.4.1.1 Air
to support activities
concrete batch plant, concrete crushing operation to reclaim and recycle
old concrete from
areas, fuel storage areas,
an d fugitive emissions. In addition, an air permit will be needed for installation of
permanent
emission
generators and the
will be conducted
V permit
will be
Natural Resources
Use permits
groundwater cooling and other
operational uses. In addition, a Groundwater Withdrawal permit will be required
for construction
from storm events
to ensure state water quality criteria are protected during construction an d
subsequently
land
disturbing
Stormwater
Permit
filing of a Notice of Intent
(NOI).
2008. Additional
project progresses.
the
blowdown
River.
COMPANY This page contains confidential trade
secret and proprietary
U.S.C.
§552(b)(4),
This
to
persons
to support routing
of the intake
the NRC developed
2008 as NUREG
FEIS considers the impacts
In
approvals
for
construction
and
operation
interest of brevity
in detail
here. Based on our review, there is no indication of any
technical, regulatory,
and
and 4. Dialogue has
and
local
to
ensure
the
permit
to
information
persons in other
other required
shall us e the information only for purposes of review
and evaluation.
prepared by
SNC, the Final EIS prepared by NRC and issued as NUREG 1872 in
August
applicable
other
actions
review,
it
for
3 and 4. No technical, regulatory, or
engineering issues have been identified that would prevent the facility from
obtaining the necessary permits an d authorization to construct and operate the
facility. In addition, the FEIS
(NUREG
1872)
operation of Vogtle Units 3 and 4
will
actions have
and are
being taken to obtain the necessary permits an d regulatory approvals and other
environmental actions to support al l project activities including construction.
2.5 Project Activities
(EPC)
Contract
On April 8, 2008 GP C acting for itself an d as
agent
the
City
municipality in the State of Georgia acting
by
and
Light an d
& Webster, Inc.
over
a period of approximately two
years. The Owners of Vogtle 3 & 4 were represented by experienced personnel from
SNC, GPC, Southern Company's Engineering
and Construction Services
organization, Southern Company's
Supply Chain organization,
an d outside
an d negotiating
team was supplemented as needed by other personnel who held expertise in
a wide
variety of
EP C
trade secret and proprietary information
that meets the
U.S.C. § 552(b)(4),
18 U.S.C.
U.S.C.
18 U.S.C. § 1905, and 10 C.F.R. §
1004.11(f). This information shall not be released to persons outside DOE, except for
persons inother United States Federal Government
agencies whose
of the
GPC VogUe Expansion Project
Loan Guarantee Application. DO E and other required reviewers shall us e the information only for purposes of review
and evaluation.
rights
due to Consortium
on cost an d schedule are
clearly defined in the contract. In the event of a dispute
concerning
C.F.R.
DOE, except for
persons in other
for approval of the GPC Vogtle
Expansion
Project
Loan
Guarantee
shall use
the information
and activities
that must
2016 for Unit 3 and April 1, 2017 for Unit
4.
activities
This schedule contains
thousands
Additional
line items and associated schedule logic is being added as additional
details are
to the schedule that affect critical
activities or
Owner. The Owner has rights to
monitor schedule progress. Remedies for lack of progress
are
commercial terms that adequately
and type. The commercial
expertise in various topical areas
that
were
discussion
of
key
commercial
2.5.1.7 Pricing
pricing
to
is structured to give an adequate level of price certainty
to the
Owners without unnecessarily adding to the cost of the contract through the
inclusion of
uses
that
can
price for
the
through the application
projects. Application of these
information
2.5.1.8
Payments
and
Payment
Schedule
The
EPC
contract
covered by
the contract.
These payment
duration of the contract.
appropriate
inspect and
design, procurement, and
secret
and
proprietary
information
public disclosure in 5
This page contains confidential trade secret and proprietary information that meets the criteria for protection
from
public disclosure in 5
U.S.C. § 552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. § 1004.11(f). This information
for
persons inother United States Federal Government agencies whose review is
required
Loan Guarantee Application. DOE and other required reviewers
shall use the information
* Resources for Licensing and
environmental, to provide oversight of contracted activities, and to
provide
well over
included in this oversight:
Insurance,
Sales
Information Technology infrastructure
and 2 existing
structures
are
Center,
certain
VEGP
Unit
1
and
4.
support plant
5
information
persons outside DOE,
for purposes
of review
and evaluation.
2.6 Construction
place prior to
final module installation.
pictorially below and
Vogtle site may
general
categories:
in more
&
confidential
U.S.C.
§ 552(b)(4),
Total
volume
of
U.S.C. § 552(b)(4), 18 U.S.C. § 1905, and 10 C.F.R. § 1004.11(f). This
information shall not be released to persons outside
DOE,
except
for
approval
of
the
GPC
Vogtle
use the information only for
purposes of review
the
of the
EP C contract. With the exception of the Communications Support Center,
these
facilities
or
COL.
2.6.4
The fabrication and
assure
that
the
support
plant
construction.
to
major structural modules at a new facility currently under construction
in
Lake
sections
for
20 .
NRC LWA
activities are
al l
will include
wall
that
mudmats and
Nuclear
duration
is 48 months
of congruent
2.6.8 Modifications
to Existing
that
changes
needed
confidential
trade
secret
for protection
This
to
for
Project
as terms in
Consortium. However, overall milestones are public information. Those milestones
are shown in the Figure below:
Votile
Project
Crtical
Path
Month.FI-ATP .t 8 I13
1
1
8
71 1111 211 2221 25 2 2 2728 1 2 2 40| 41 424| 4 0 47
..roI Co-itle 40
--- 1-37-2 3 1-l- 312-221-704 0 -19 - . - 1 01 .0 A-12-l2 --l - A- T121 2 3 a
M A MJ N FASO1 J J S MA J SA0 N D MA M J AS 5
F
I
Ctoeo
WA
CA- 20
P
I_ &
CREN,
WC
V
Or
Per
Qkti.
Vogtle Expansion
activities
culminating
accident analysis of
Other systems
identified in Regulatory Guide 1.68, Revision 2, Appendix A that are
in the
Page 87
meets the
U.S.C.
§ 552(b)(4),
18
the GPC Vogtle Expansion
reviewers shall use the information only for purposes of review
and evaluation.
NRC CONSTRUCTION
This page contains confidential
from public disclosure in 5
U.S.C.
every
4.
U.S.C. § 1905,
and 10 C.F.R. § 1004.11(f). This information shall not be released to persons outside DOE, except
for
Loan
2.7.3 Non-Fuel
costs have
been projected
the GPC portion (i.e.
Excluding Fuel Excluding Fuel
and 10 C.F.R. § 1004.11(f).
persons inother United States Federal Government agencies
whose review is required for approval of the GP C Vogtle Expansion
Project
and other require

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