Southern Company (SO)

[eFinanceMarkets]

Southern seeking $3.7B from Toshiba to complete Georgia nuclear plant

Southern (SO +0.4%) CEO Thomas Fanning says the company will need $3.7B and cooperation from Toshiba (OTCPK:TOSBF) to complete the Vogtle nuclear power plant in Georgia that was being built by the bankrupt Westinghouse unit, and even then he is not certain it can finish the half-built reactors.

“We are working with Toshiba to receive complete assurance as to the $3.7B guarantee that they owe us, whether we finish the project or not,” Fanning tells WSJ.

Fanning says he expects to conclude negotiations with Toshiba in the next couple of weeks; SO has agreed only to continue paying for construction through May 12, but the deadline could be extended.

But Fanning makes clear that even if Toshiba agrees to pay the $3.7B, SO still has not decided whether it would finish building the plant; he says a recommendation will depend on ongoing negotiations with Toshiba and an assessment of how much time and money it will take to finish the project.