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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: longnshort who wrote (26122)	2/14/2010 10:44:56 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

Southern Gets Conditional Nuclear Loan Guarantee FEBRUARY 13, 2010 By CHRISTINE BUURMA online.wsj.com NEW YORK -- The Department of Energy is awarding the first conditional loan guarantee for a new nuclear power plant in the U.S. to Southern Co.'s Vogtle plant in Georgia, and could announce the agreement as early as Tuesday, according to two people familiar with the matter. Under the loan-guarantee program, the government promises to assume a company's debt obligations if it defaults on debt incurred for the projects. Because new nuclear reactors cost billions of dollars to develop, the loan guarantees can be a key step for energy companies that plan to undertake such projects. David Ratcliffe, Southern's chairman, president and chief executive, has previously said that he expected the Vogtle plant to receive a preliminary guarantee before the end of the first quarter. Southern, along with Oglethorpe Power and the Municipal Electric Authority of Georgia, plans to build two new reactors at Plant Vogtle near Augusta, Ga. Southern is "still in the negotiation process," a company spokeswoman said, declining to elaborate. The DOE couldn't be reached immediately Friday for comment, but has previously declined to discuss the timing of loan-guarantee awards. The Vogtle project, estimated to cost $14.5 billion, received an early site permit from the U.S. Nuclear Regulatory Commission last year. The permit has allowed the company to begin early stage construction at the site. Southern has also filed for a combined operating license to build and operate the 1,100-megawatt reactors, which the company has said could enter service in 2016 and 2017. The government won't award final loan guarantees for new nuclear power plants until the projects have received combined operating licenses, which aren't likely to be granted before 2011. Congress has so far appropriated $18.5 billion for the nuclear loan guarantee program, enough funding for only two or three projects. The Obama administration has proposed tripling the program, however. As of May, Southern, Scana Corp., Constellation Energy Group and NRG Energy Inc. were the four companies with projects still in the running for federal loan backing. Southern shares were recently down 22 cents at $31.10 and are down 6.7% since the start of the year. Write to Christine Buurma at christine.buurma@dowjones.com