Moody’s: Vogtle decision won’t enhance Georgia Power’s credit outlook

Moody’s Investors Services says the unfavorable credit outlook for Georgia Power and two of its three partners in Plant Vogtle stays intact after the current vote by state regulators to continue construction.The credit agency’s decision to lower the credit outlook for Georgia Power, Municipal Electric Authority of Georgia (MEAG)and Oglethorpe Power Corporation from stable to unfavorable followed Georgia Power’s choice last year to suggest conclusion of the task, increasing the energy’s business and functional dangers. Moody’s sees the modification from a fixed-contract to a cost reimburseable one as a potential

for running extra expenses, leading to more monetary risks for the utilities, and added financial dangers for ratepayers.Dan Aschenbach, Senior citizen Vice President at Moody’s Investor Solutions stated additional costs to the task could make it possibly more costly than other types of fuels and lead to a real credit downgrade instead of the existing unfavorable outlook.The decision by Moody to reduce the credit outlook for the partner companies preceded a choice last month, where the 5 commissioners at the Georgia Civil Service Commission unanimously voted to authorize Georgia Power’s modified expenses and schedule for the project.The 2 systems at first set for completion in 2016 and 2017, will, according to Georgia Power’s new schedule, be done by 2022. The job expenses are expected to practically double from $14 billion as expected in 2009 to$25 billion at conclusion

. Dalton utilities which owns 1.6 percent share of Vogtle is the only one of the four co-owners with a steady outlook. Aschenbach associates this to an absence of financial obligation by the energy which paid its capital costs for Vogtle in cash unlike the other co-owners. The Atlanta Journal-Constitution Among the 2 new cooling towers under building at Plant Vogtle.(AJC 2015 File Image )Another company decreases Vogtle owners’ outlook In early December, Fitch Scores Inc. likewise

, Oglethorpe Power Corporation and MEAG.Fitch’s ratings associated the downgrades to the unfavorable outlook presented