One of the co-owners of the SCANA V.C. Summer nuclear power plant has announced that halting work would save customers almost $7 billion. The bankruptcy of nuclear-plant builder Westinghouse Electric Co. led to this announcement. Scana Corp., which has a 55 percent stake in the project, said it will ask the Public Service Commission of South Carolina to approve its abandonment plan, according to a statement on Monday.
The decision to halt the expansion of the V.C. Summer plant comes four months after Westinghouse filed for bankruptcy and underscores the financial challenges facing U.S. nuclear power.
Scana’s decision threatens to weaken the business case for the Vogtle reactors as the two companies could have sourced materials and services together. Scana slumped the most in more than two years late last week after the utility said the V.C. Summer expansion faced “significant challenges.”
Just last week, Scana and Santee Cooper secured a $2.2 billion payment guarantee from Toshiba Corp., the parent of Westinghouse. Still, Scana said the plants would face additional costs, casting doubt over whether they would be completed. That marked a shift from the end of March when Scana Chief Executive Officer Kevin Marsh said that scrapping the project would be the “least preferred option.”
Monday’s decision came after Santee Cooper, the state power authority with a 45 percent stake in the new reactors which came up with the $7 billion estimate, said it wouldn’t be in the best interests of its customers to continue. Scana cited Santee Cooper’s decision to halt work, as well as uncertainty over the availability of production tax credits and the amount of payments guaranteed from Toshiba.
Westinghouse is “disappointed” by Santee Cooper’s decision to halt work at both reactors, the Cranberry Township, Pennsylvania-based Toshiba unit said in a statement. The company said it will work with Scana to close out the project. (Bloomberg, 7/31/2017)