Stipulation Georgia Power Company (?Company?), and the Public Interest Advocacy Staff agree to the following: 1. stream The Commission should certify the proposed Vogtle Units 3 and 4 as set forth in the Company?s certi?cation application with the modi?cations speci?ed in paragraphs 2 through 7 below. The certi?ed in service cost of Georgia Power?s interest in the proposed Vogtle Units 3 4 shall be $6,446,564,927. The Commission should ?nd that the selectiOn of the technology was reasonable and prudent, and that the EPC Agreement is reasonable. The Company shall ensure that the Consortium is performing in accordance with the standards and requirements set forth in the EPC Agreement. The Company will ?le semiannual monitoring reports with the Commission as provided by O.C.G.A. 46-3A-7(b) and shall provide to the Commission status reports on the construction work in progress. In addition, the Company shall develop a records retention program acceptable to the Commission for records relating to Vogtle construction. The Company shall ?le its proposed records retention program with the Commission within 30 days of the date of an order accepting this Agreement. a. The content of the status reports and semiannual monitoring reports shall be as agreed to from time to time by the Company and the Staff, or, if those parties fail to agree on the content, as ordered by the Commission. Each status report shall be ?led by the 20?'1 of the following month. The semiannual monitoring report shall include any proposed revisions in the cost estimates, construction schedule, or project con?guration, as well report on actual costs incurred in the period covered by the report. The parties agree that the status reports do not constitute monitoring reports within the meaning of O.C.G.A. 46-3A- - 2042234? b. The Company agrees to pay up to a total of $600,000 per year for each year of construction for an independent Construction Monitor to assist the Staff in monitoring the construction work in progress as provided by O.C.G.A. This amount may be increased at any time by the Commission upon agreement of the Staff and the Company. The CM will be retained by the Company under a contract that is acceptable to the Commission. In order to help assure independence, the CM shall be selected by and report to the Commission. The Company and the Staff may recommend or entities to serve as the CM. The Commission shall establish the minimum quali?cations and requirements fer the CM and shall select the CM. The amounts. paid under this provision shall be capitalized as part of the in-service cost of the units. . The Company?s ?rst semiannual monitoring report shall be ?led on August 31, 2009 and shall cover any proposed revisions in the cost estimates, construction schedule, or project con?guration and actual costs incurred during the preceding January through June. The second shall be ?led on February 28, 2010 and shall cover any proposed revisions in the cost estimates, construction schedule, or project con?guration and actual costs incurred during the preceding July through December. Each following monitoring report shall be ?led on those dates (August 31 and February 28) in the following years until both Units 3 and 4 have reached commercial operation and shall cover the corresponding periods. If the date for ?ling a semiannual monitoring report occurs on a weekend or holiday, the ?ling shall be made on the next subsequent business day. . In each semiannual monitoring report, the Company shall provide the following information: 1. The reasons for any additional change in the estimated costs of the units since the process began. 2. A description of any cooperative actions between other builders of nuclear units in the southeast to address labor, crafts, engineering and management requirements. 2m2234v1 3. An explanation of how the indices used in the EPC contract are tracking. 4. Any updated estimate of on site spent ?iel storage costs, including the costs for dry storage of spent fuel for an extended period of time after shutdown, and any updated calculation of spent fuel storage costs assuming Yucca Mountain is never available. 5. The status of the Company?s loan guarantee application at the Department of Energy and to the extent that application is granted, then the Company shall also report on the impact it has or would have on the ?nal expected in service cost of the units. 6. Whether the Company is using trust preferred ?nancing and the impact it has or would have on the expected in?service cost of the units. 7. The extent to which the Company is using short term debt and the impact it has or would have on the expected in-service cost of the units. 8. An update of the estimated in-service cost and projected date of commercial operation of both Units. 9. A description of all major sources of changes (both increases and decreases) to the in?service cost and sources of change in commercial operation dates, if any. 10. The status of the Company?s combined construction and operating license (COL) application at the Nuclear Regulatory Commission. 11. The status of all other signi?cant permits and licenses required from other governmental agencies. 12. The status of procurement, engineering, fabrication, transportation and erection of major equipment. 13. The status of tranSportation links for heavy forgings and modules. 14. An updated comparison of the economics of the certi?ed project to other capacity options, and 15. The Company will be under a continuing obligation to supplement its response to PIA Staff DR by ensuring that the ?nancing data reflected in the schedules attached to that DR response re?ect the most current and updated information at the time of each semi-annual monitoring report. In addition, the Company will provide the most current information shared with each of the Rating Agencies. The Commission should approve the Company?s 2008 Integrated Resource Plan Update (?Updated .as well as its Budget 2009 forecast as ?led. The Company expects to complete its Budget 2010 Forecast in the Fall of .2009 and shall ?le that with the Commission as part of its 2010 IRP. The Company will withdraw its request for deferral of costs incurred in developing and evaluating coal-?red generation. The parties can not reach an agreement as to whether the Commission should grant, or grant in part, or deny, the Company?s request to include the project?s construction work in progress accounts in rate base. The parties agree that on March 17, 2009, the Commission should approve this Agreement and then separately decide the question of whether to include the project?s CWIP amounts in rate base. Staff urges the Commission to deny that request. In the event that the Commission determines that some amount of CWIP in rate base is appropriate, Staff urges the Commission to adopt Staff alternative proposals of partial CWIP or Mirror CWIP in lieu the Company's NCCR rider proposal. The Company urges the Commission to grant the request to include the project?s CWIP accounts in rate base and to approve the NCCR rider proposal. The Parties agree to support this Agreement in their briefs to be ?led on March 6, 2009, but agree that each may argue their respective positions on the question of whether the Commission should grant, or grant in part, or deny, the Company?s request to include the project?s CW accounts in rate base. The Parties ?irther agree that after the Commission decides whether to include the project?s CWIP accounts in rate base, SB 31, which is currently under consideration in the General Assembly, has the potential to impact whether and how the Company will recover the project?s CWIP accounts in rate base, if it is allowed at all. Therefore, the Parties agree that, if SB 31 becomes law, any party that believes that SB 31 requires that the Commission modify its decision may petition the Commission to initiate a proceeding to conform the order to the requirements of the new law. The parties also can not reach an agreement as to whether the Commission should adopt Staff?s proposed Incentive Plan. The parties agree that on March 17, 2009, the Commission should approve this Agreement and then separately decide the question of whether to adopt, adopt in part, or deny Staff?s proposed Incentive Plan. Sta?' urges the Commission to approve that plan. The Company urges the Commissidn to not approve that plan. The Parties agree to support this Agreement in their briefs to be ?led cn?March 6, 2009, 10. but agree that each may argue their respective positions on the question of whether the Commission should adopt, or adopt in part, or deny, the Sta??s preposed Incentive Plan. By agreeing that this issue should be decided separately by the Commission, the Company is not waiving its right to assert that it may reject a Certi?cate conditioned on approval of the Staff's proposed Incentive Plan or any similar plan, not is the PIA Sta?' waiving its right to assert that the Company must accept such a certi?cate. Speci?cally, the Company retains its right to appeal any adverse decision pertaining to Commission's resolution of the Staff proposed Incentive Plan. The Commission should approve and ?nd prudent the Company's plan to install emission controls at Plants Branch and Yates. The parties agree that the issue raised by PIA Staff concerning whether the veri?cation of costs as part of a semi armaal monitoring report constitutes a ?nding of prudence or not is a legal question which is not resolved in this Stipulation and should not be resolved by the Commission at this time. If the issue ever becomes ripe for decision, each party reserves the right make its own legal arguments on this question at that time This agreement resolves all of the issues in dispute in this docket except those set out in paragraphs 5, 6, 7 and 9. Nothing contained in this Agreement may be used as evidence in any subsequent case except for the purpose of enforcing the terms of this agreement. Nothing contained in this Agreement shall constitute precedent in any subsequent proceeding. Agreed to this day of March, 2009 2m2234v1 On Behalf of Gear 'a Public Service Commission Public Interest Advoca Staff: Uv" 0n ?'g?half of Georgia Power Company: 204