Oglethorpe Power Receives Offer of DOE Nuclear Loan Guarantees

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Feb 16, 2010, 12:16 ET

ATLANTA, Feb. 16 /PRNewswire/ -- Oglethorpe Power Corporation has been notified by the U.S. Department of Energy (DOE) that it is being offered a conditional commitment for federal loan guarantees to help fund its participation in Units 3 and 4 of the Alvin W. Vogtle Nuclear Plant near Waynesboro, Ga. Oglethorpe Power is a 30 percent owner of Plant Vogtle's existing Units 1 and 2 and will own 30 percent of the two new units as well.

The loan guarantee announcement was made by President Barack Obama and Energy Secretary Steven Chu in a Tuesday ceremony in Lanham, Md.

"We are extremely pleased with the decision by the Department of Energy to support the expansion of Plant Vogtle with these loan guarantees," said Thomas A. Smith, President & CEO of Oglethorpe Power. "The construction of Units 3 and 4 at Vogtle will provide Georgia's consumers with an outstanding new source of emission-free power to support our state's future economic growth."

Smith said the loan guarantees will help keep costs lower for Oglethorpe Power's participation in the new Vogtle units by allowing the corporation to obtain funds for up to 70 percent of its estimated $4.2 billion cost for the new units at favorable rates from the Federal Financing Bank. Oglethorpe Power will seek other sources of funding for the remaining project costs, including the issuance of taxable bonds, along with tax-exempt bonds for qualifying equipment at the plant.

The DOE loan guarantee program is designed to support the commercialization of innovative technologies to reduce air pollutants including greenhouse gases. It was initially authorized under Title XVII of the Energy Policy Act of 2005 and was subsequently funded and extended.

Oglethorpe Power Corporation (OPC) is the nation's largest power supply cooperative with nearly $6 billion in assets serving 39 Electric Membership Corporations which, collectively, provide electricity to more than 4 million Georgia citizens. A proponent of conscientious energy development and use, OPC balances reliable and affordable energy with environmental responsibility and has an outstanding record of regulatory compliance. Its diverse energy portfolio includes natural gas, hydroelectric, coal and nuclear generating plants with a combined capacity of approximately 5,500 megawatts (MW), as well as purchased power. OPC was established in 1974 and is owned by its 39 Member Systems. It is headquartered in Tucker, Georgia. For more information, check the web site at www.opc.com.

SOURCE Oglethorpe Power Corporation