WILMINGTON, Del/NEW YORK, May 14 (Reuters) - The owners of the Vogtle nuclear power plant in Georgia led by Southern Co agreed to cap Toshiba Corp’s responsibility for guarantees for its bankrupt Westinghouse subsidiary, helping ease the Japanese electronics maker’s financial stress, people familiar with the matter said Sunday.
The agreement pegs Toshiba’s guarantees for the unfinished Vogtle plant at about $3.6 billion, payable over at least three years, the people said, adding that the deal is not yet final.
The deal is also contingent on the owners of the incomplete V.C. Summer power plant in South Carolina, including utility company SCANA Corp, coming to a similar agreement with Toshiba, said the people, who could not be identified because the talks are not public.
Toshiba’s subsidiary Westinghouse is building the nuclear power plants for the U.S. utility companies, but filed bankruptcy in March due to cost overruns.
Toshiba and Westinghouse declined to comment. SCANA did not immediately return a request for comment.
“We remain in discussions with Toshiba to add structure to their payment obligation under the $3.68 billion parent guarantee,” said Jacob Hawkins, a spokesman for Southern Co’s Georgia Power unit. “We will take all actions necessary to hold Westinghouse and Toshiba accountable for their financial obligations, including the parent guarantee.”
Reporting by Tom Hals in Wilmington, Delaware and Jessica DiNapoli in New York; Editing by Nick Zieminski