Monday 12 June 2017

Toshiba caps liability for nuclear plant at $3.7bn

Toshiba has capped its liability for a nuclear power plant in Georgia, US, at $3.7 billion (£2.9bn).

Georgia Power has entered into new agreements with the Japanese technology giant, which is parent company of Westinghouse, the now bankrupt contractor on the Vogtle nuclear plant.

The agreement, approved by the US Department of Energy (DoE), affirms the value of Toshiba's guarantee and provides additional protections for Georgia's electricity customers.

The first guarantee payment under the new agreement is due from Toshiba in October 2017.

Additionally, Georgia Power and Westinghouse have finalised a new service agreement which allows for the transition of project management from Westinghouse to Southern Nuclear and Georgia Power.

This includes engineering, procurement and licensing support, as well as access to intellectual property needed for the project.

Paul Bowers, Chairman, President and CEO of Georgia Power, said: "We are pleased with today's positive developments with Toshiba and Westinghouse that allow momentum to continue at the site while we transition project management from Westinghouse to Southern Nuclear and Georgia Power.

"We are continuing to work with the project's co-owners to complete our full scale schedule and cost-to-complete analysis and will work with the Georgia Public Service Commission to determine the best path forward for our customers."

A reactor designed by Toshiba’s nuclear unit has been approved by UK regulators.