At SCE&G, providing clean, safe, reliable energy for our customers is and has always been our highest priority.
In 2008, SCE&G and Santee Cooper began the process of licensing and building two new nuclear electric-generating units at V.C. Summer Nuclear Station. We contracted with Toshiba-owned Westinghouse Electric Company for engineering, procurement, and construction of the new units. Today, we announced that we have made the difficult but necessary decision about that project – moving forward with construction is no longer prudent and in the best interest of our customers.
This decision follows the March 2017 bankruptcy filing of Westinghouse, which eliminated the benefits of our fixed-price contract to our customers, investors, and other stakeholders. It also follows months of SCE&G and Santee Cooper each comprehensively evaluating our options to determine the most prudent path forward for the jointly-owned project.
Simply put, our evaluation showed that it would cost too much and take too long to complete construction on both units. There are many factors beyond our control that dictated this decision. Although it appeared to us that it may have been feasible to complete construction of one unit, that option was eliminated when Santee Cooper decided to suspend construction of the project. It is not economically feasible for us to move ahead on our own, and the most prudent path forward is for SCE&G to cease construction of both units and file a Petition for Approval of Abandonment with the Public Service Commission of South Carolina.
We want to thank our customers for your patience and support as we’ve pursued this project with the goal of building a clean, reliable energy future for South Carolina. We plan to use anticipated payments from the Toshiba settlement, benefits derived from tax deductions, and potentially, proceeds from the sale of any equipment on the site to mitigate future rate increases to lessen the impact on our electric customers.
We recognize the impact of this decision on customers, employees, and the communities we serve. SCE&G will be implementing a plan for easing the transition for employees and other parties affiliated with the site work.
In the coming months, we will be outlining our next steps to meet the continuing and growing generation needs of our state.
As we enter the next phase in our long history of providing energy to hundreds of thousands of people across South Carolina, we are maintaining our focus on operating our generating plants safely and efficiently, leading the region in electric reliability as we maintain and modernize our electric delivery systems, and on continuing to respond to growth in our service territory.
We will keep you updated on developments moving forward. We value our relationship and thank you for your support.