Who Pays For Failed Nuke Project?

PSC Hearing in Columbia

South Carolina Radio Network
November 06, 2018 - 10:49 am

SCE&G

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NOVEMBER 6, 2018 BY BILL DUBENSKY (South Carolina Radio Network)

The hearing by the South Carolina Public Service Commission (PSC) that will set South Carolina Electric&Gas’ (SCE&G) rates and decide who, SCE&G owner SCANA, customers or both, will have to pay off its nearly $5 billion in construction debt from the abandoned VC Summer nuclear expansion project dragged on again Monday.

Office of Regulatory Staff (ORS) consultant Gary Jones said that he reviewed the failed project. “My testimony sets forth my findings and recommendations resulting from my examination. The prudence of the costs accrued by South Carolina Electric&Gas during the construction of the project until the time the time the abandonment decision was made.”

Jones said that SCE&G’s electric customers should not pay for the failed expansion project. “These costs were imprudent and should be disallowed by the PSC as a basis for recovery due to the abandonment by SCE&G.”

Attorneys for SCE&G have said that ORS staff knew of the project’s major problems and is blaming SCE&G for the failed project.

Last week representatives of SCE&G blamed the project’s failure on lead contractor Westinghouse for declaring bankruptcy in March 2017. That in turn, they said forced them and state-owned partner utility, Santee Cooper, to stop construction and back completely out of the project in July 2017.

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