I have never been a fan of Southern Company. I ain’t gonna cry crocodile tears for them either. I mean this is some of the dumbest shit I have ever seen. I mean it has already bankrupted a GE unit. Heh lets throw good money after bad, and more bad, and more bad.
Southern Co. will absorb $1.1 billion in additional pre-tax costs for its Plant Vogtle nuclear expansion project, the company said in financial disclosures early today.
The costs include $700 million in additional subcontractor costs and an additional construction contingency estimate for nuclear reactors, which Southern’s Georgia Power Co. unit is building with a group of public power companies.
Georgia Power recorded the pre-tax charge of $1.1 billion, or $800 million after taxes, for the quarter, ending June 30.
Atlanta-based Southern released the information shortly after 6 a.m. as part of its quarterly report filed with the Securities and Exchange Commission.
The company’s decision to eat millions of dollars in costs associated with a large power plant is a bitter reminder to investors of its next-generation coal project in Mississippi. Southern took back-to-back quarterly losses amounting to billions of dollars with the Kemper County energy facility because of a settlement with Mississippi utility regulators.
Unlike Kemper, Southern does not own the technology associated with Vogtle. This is also the first year that the company’s nuclear unit and Georgia Power are fully in control of the project.
This means the utilities can no longer point fingers at others if there are problems.
Go there and read a really long articel. More next week.