The credit profile of MEAG Power Project P Vogtle Nuclear Units 3 & 4 (Project P: Baa2 stable) reflects the credit quality of PowerSouth Energy Cooperative (PowerSouth: Baa1 issuer rating, stable), the offtaker pursuant to a court validated “hell or high water” take or pay (TOP) power purchase agreement (PPA) with MEAG Power for approximately 125 MW of capacity from the Vogtle Units 3 & 4 nuclear generation station during the initial 20 year operational period.

The credit profile reflects timely recovery of all ongoing operating and debt service costs related to Project P from PowerSouth based on the revenue requirement set by MEAG Power pursuant to the TOP contract with PowerSouth during the initial 20 years of the Project P bonds. The credit profile further considers that following the expiration of the 20 year TOP contract with PowerSouth, the obligation to purchase power reverts to 39 of MEAG Power's wholesale utility participants with a Moody’s estimated weighted average pool rating in the A rating category.

The credit profile acknowledges recent progress made towards the completion of Vogtle Units 3 & 4 in recent months. Vogtle Unit 3 reached its commercial operations date (COD) on July 31, 2023, whereas Vogtle Unit 4 received the 103(g) finding from the Nuclear Regulatory Commission (NRC) as of the end of July 2023, indicating its ability to begin loading nuclear fueling. Vogtle Unit 4 is expected to reach COD by the first quarter of 2024.