Written by Jessica Holdman, SC Daily Gazette
South Carolina’s state-owned utility company is expected to take the next step toward rebooting a pair of partially-built nuclear reactors in the state.
The power company’s governing board is scheduled to meet Friday. On the agenda: a resolution related to “Completion of the AP1000 Nuclear Units in Fairfield County.”
It has been nine months since Santee Cooper put the call out to potential partners willing to restart construction on the failed reactor project at the V.C. Summer nuclear plant.
Nearly 80 interested parties responded, more than 50 of which ultimately submitted a bid, CEO Jimmy Staton previously told the SC Daily Gazette. Those involved include large utility companies, investment banks and technology giants.
Now, the board is expected to take recommendations from the utility’s management team on how to proceed, according to a letter sent by Santee Cooper to state senators Tuesday. The letter said “additional steps” will still need to be taken before an agreement, known as a memorandum of understanding, is reached.
Santee Cooper and the now defunct South Carolina Electric & Gas started construction on the two first-of-their-kind nuclear reactors alongside an existing unit in Fairfield County in early 2013. But the project was riddled with delays, cost overruns and fraud that led to multiple federal convictions of former executives.
The utilities abandoned the plant’s expansion in 2017, but not before spending $9 billion.
SCANA, SCE&G’s parent company, spiraled into bankruptcy and Virginia-headquartered Dominion Energy bought up what had been the only Fortune 500 company based in South Carolina.
As part of the buyout deal — approved by utility regulators at the end of 2018 — Dominion agreed to knock down what customers would ultimately owe for the reactors that have yet to produce a single megawatt.
“This is what I’ve been waiting over eight years for: to not only convert $9 billion of what many in July 2017 called a completely unrecoverable waste of money into a productive asset, but to do so in a way that assigns the cost of new power generation to the private (companies) driving the need for that new generation,” Sen. Tom Davis told the SC Daily Gazette.
The Beaufort Republican has championed the effort as a way for the state to meet its growing power needs, driven by residential and manufacturing growth, as well as an influx of technology companies that Davis referred to as “hyperscalers.” These tech giants, including Google and Facebook parent company Meta, have been building out energy-intensive data centers across the state needed to meet their vast computing needs.
Neither Santee Cooper nor Dominion have interest in taking up the nuclear project again, which is why Santee Cooper has turned to outside developers.
Whatever group is ultimately chosen will need buyers for the power the plant produces, companies that can design, engineer and build it, and those that bring the financial wherewithal.
Dominion’s roughly 800,000 South Carolina customers still have a little less than 14 years before they pay off $2.3 billion worth of debt for the abandoned expansion.
Santee Cooper’s share of the debt was $3.6 billion, with customer payments expected to continue through at least 2032.
If a deal does get done, Santee Cooper customers still shouldn’t expect to see the cost of the plant come off their power bills, Staton has said. Instead, they’ll benefit from the electrons produced by a finished facility.
“Once the two reactors are completed, with private capital and at private risk, an additional 2,200 megawatts of carbon-free energy will come on line,” Davis said. “This new generation model can be replicated in future years to meet future needs. A source of shame will become a source of pride.”
This latest move follows calls by Gov. Henry McMaster earlier this year for a “nuclear power renaissance” in the state.
And U.S. Sen. Lindsey Graham of South Carolina has vowed his support for the effort, which will ultimately have to make its way through the federal regulatory process.
SC Daily Gazette is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. SC Daily Gazette maintains editorial independence. Contact Editor Seanna Adcox for questions: [email protected].