The agreement announced by Georgia Power regarding a loan guarantee of $3.68 billion by the parent of the Plant Vogtle contractor may be hollow because of the parent’s weak financial position, according to a comment by Moody’s Investors Service.
The hero or villain of the effort to save Plant Vogtle could prove to be the head of a private equity firm who pioneered junk bonds and was nearly scuttled in 1990. Georgia Power protested terms of the loan deal, but a New York judge provided some protection and last week ordered that the entire $800 million in loan funds should flow.
The bankruptcy papers Westinghouse filed today in regards to Plant Vogtle names the nuclear plant in Georgia as one of two reasons the company faces a dire financial situation. The other reason is a nuclear power plant in South Carolina.
You probably wouldn’t know it from checking our local media outlets, but Georgia Power, the state’s largest electric utility, is at the center of one of the biggest consumer shakedowns in state history – and there could be more bad news on the way.