Southern Co.'s Nuclear Build Faces a Hurdle
Giant U.S. utility The Southern Company (NYSE: SO) is doing something that no other domestic electric company is even willing to try right now: It is building a pair of nuclear power plants. The only other company that was trying to build a nuclear plant domestically ended up bailing on the project, and then selling itself to a competitor in the aftermath. So when Southern's earnings roll around, the big story is always the progress it is making on the Vogtle nuclear power project. The third-quarter update was generally good, but there's one issue that investors should be watching.
Southern has been responsible for overseeing the construction of two nuclear power plants at its Vogtle facility since its former project manager (Westinghouse) declared bankruptcy. Southern was able to weather that storm, but has materially increased its project-related risk. At this point, Southern and its shareholders are largely on the hook for any additional price overruns or construction delays.
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Source Fool.com