8. Electric plant, construction and related agreements:

a. Electric plant

We, along with Georgia Power, have entered into agreements providing for the purchase and subsequent joint operation of certain electric generating plants. Each co-owner is responsible for providing its' own financing. The plant investments disclosed in the table below represent our undivided interest in each plant. A summary of our plant investments and related accumulated depreciation as of December 31, 2012 and 2011 is as follows:



	2012					2011
		(dollars in thousands)
Plant		Investment		Accumulated Depreciation			Investment		Accumulated Depreciation

In-service⁽¹⁾
Owned property
Vogtle Units No. 1 & No. 2 (Nuclear – 30% ownership)	$	2,745,800	$	(1,566,133	)	$	2,726,129	$	(1,528,841	)
Vogtle Unit No. 3 & No. 4 (Nuclear – 30% ownership)		8,956		(147	)		–		–
Hatch Units No. 1 & No. 2 (Nuclear – 30% ownership)		645,722		(361,554	)		603,865		(369,189	)
Wansley Units No. 1 & No. 2 (Fossil – 30% ownership)		441,340		(147,890	)		394,596		(129,994	)
Scherer Unit No. 1 (Fossil – 60% ownership)		696,223		(288,701	)		663,583		(269,525	)
Rocky Mountain Units No. 1, No. 2 & No. 3 (Hydro – 75% ownership)		585,133		(187,763	)		584,569		(176,356	)
Hartwell (Combustion Turbine – 100% ownership)		224,374		(89,822	)		223,936		(85,337	)
Hawk Road (Combustion Turbine – 100% ownership)		243,963		(56,593	)		241,587		(51,253	)
Talbot (Combustion Turbine – 100% ownership)		281,009		(86,000	)		280,413		(77,616	)
Chattahoochee (Combined cycle – 100% ownership)		301,246		(88,272	)		299,117		(79,285	)
Smith (Combined cycle – 100% ownership)		553,942		(123,575	)		554,158		(109,741	)
Wansley (Combustion Turbine – 30% ownership)		3,624		(3,161	)		3,684		(3,084	)
Transmission plant		84,801		(45,381	)		78,470		(41,539	)
Other		109,461		(67,415	)		106,083		(64,433	)
Property under capital lease:
Doyle (Combustion Turbine – 100% leasehold)		126,990		(82,546	)		126,990		(80,030	)
Scherer Unit No. 2 (Fossil – 60% leasehold)		454,123		(277,134	)		448,686		(262,362	)

Total in-service	$	7,506,707	$	(3,472,087	)	$	7,335,866	$	(3,328,585	)

Construction work in progress
Vogtle Unit No. 3 & No. 4	$	1,613,791				$	1,287,649
Environmental and other generation improvements		626,264					495,597
Other		865					1,018

Total construction work in progress	$	2,240,920				$	1,784,264

(1): Amounts include plant acquisition adjustments at December 31, 2012 and 2011 of $196,000,000 and $198,000,000, respectively.

Our proportionate share of direct expenses of joint operation of the above plants is included in the corresponding operating expense captions (e.g., fuel, production or depreciation) on the accompanying statements of revenues and expenses.

b. Construction

In April 2008, Georgia Power, acting for itself and as agent for Oglethorpe, the Municipal Electric Authority of Georgia, and the City of Dalton, Georgia (collectively, the Co-owners), and Westinghouse Electric Company LLC (Westinghouse) and Stone & Webster, Inc. (collectively, the Contractor) entered into an engineering, procurement, and construction agreement (Vogtle No. 3 and No. 4 Agreement) to design, engineer, procure, construct, and construct two AP1000 nuclear units with electric generating capacity of approximately 1,100 megawatts each and related facilities, structures, and improvements at Plant Vogtle (Vogtle Units No. 3 and No. 4).

The Vogtle No. 3 and No. 4 Agreement is an arrangement whereby the Contractor supplies and constructs the entire facility with the exception of certain items provided by the Co-owners. Under the terms of the Vogtle No. 3 and No. 4 Agreement, the Co-owners will pay a purchase price that will be subject to certain price escalations and adjustments, including fixed escalation amounts and certain index-based adjustments, as well as adjustments for change orders, and performance bonuses. Each Co-owner is severally (and not jointly) liable for its proportionate share, based on its ownership interest, of all amounts owed to the Contractor under the Vogtle No. 3 and No. 4 Agreement. Our proportionate share is 30.0%.

The Co-owners and the Contractor have agreed to certain liquidated damages upon the Contractor's failure to comply with the schedule and performance guarantees. The Contractor's liability to the Co-owners for schedule and performance liquidated damages and for warranty claims is subject to a cap.

The NRC certified the Westinghouse AP1000 Design Control Document (DCD) effective December 30, 2011. On February 10, 2012, the NRC issued combined construction permits and operating licenses (COLs) for Vogtle Units No. 3 and No. 4 which allowed full construction to begin.

There are pending technical and procedural challenges to the construction and licensing of Vogtle Units No. 3 and No. 4, including legal challenges to the NRC's issuance of the COLs and certification of the DCD. Similar additional challenges at the federal and state level are expected as construction proceeds.

During the development and construction process, issues have materialized that have caused revisions to the estimated project schedule and cost. Georgia Power has revised the estimated commercial operation dates for Units No. 3 and No. 4 from April of 2016 and 2017, respectively, to the fourth quarter of 2017 and 2018, respectively. Additionally, our estimated cost for the new units, including allowance for funds used during construction, is approximately $4,500,000,000, an increase from our original $4,200,000,000 estimate. Commercial responsibility for the revised commercial operation dates and additional costs remain in dispute.

As construction continues, additional delays in the fabrication and assembly of structural modules, the failure of such modules to meet applicable standards or other issues, including the litigation discussed in Note 13a, may further impact project schedule and cost. Additional claims by the Contractor or Georgia Power, on behalf of the Co-owners, are also likely to arise throughout construction. These claims may be resolved through formal and informal dispute resolution procedures under the contract, but also may be resolved through litigation.

The ultimate outcome of these matters cannot be determined at this time.

At December 31, 2012, our total capitalized costs were approximately $1,689,000,000.