//Westinghouse asks Court to Force Continuation of Vogtle Contract

Westinghouse asks Court to Force Continuation of Vogtle Contract


NEW YORK — Westinghouse Electric has asked a New York bankruptcy court to stop Georgia Power from terminating their contract to construct two nuclear power plants near Augusta as part of the company’s Chapter 11 bankruptcy filing.

Southern Company, which owns Georgia Power, decided to stop the massive project after Westinghouse filed for bankruptcy protection.

Georgia Power elected to push forward with the project, Plant Vogtle, worth an estimated $25.2 billion, but when faced with objections from Westinghouse over engineering, procurement, and construction claims, decided to terminate Westinghouse’s portion of the contract and press forward with other contractors.  Georgia Power claimed the bankruptcy meant Westinghouse had abandoned the project and thus the contract was void.

A Southern Company subsidiary, Southern Nuclear, took over the project.

The project now stands at near twice its original estimated cost, largely due to the design by Westinghouse.