Nuclear plant costs just went up $1.1 billion. Now SCE&G wants $286 million more!

Tell SCE&G Enough Is Enough (Instructions below)

In September, the South Carolina Public Service Commission (PSC) gave its approval to increasing the cost of building two nuclear power plants in Fairfield County by $1.1 billion due to cost overruns and schedule delays. SCE&G owns 55% of these reactors and Santee Cooper owns the other 45%.  Only SCE&G is regulated by the state.

After approving the new price tag for the nuclear plants, the PSC gave the green light to SCE&G to raise electricity rates for the eighth time to pay for their construction financing costs. This rate increase was 2.6% ($64.5 million) and brings the total in SCE&G rate hikes for the construction to over 17% since 2009.  Add the regular operational SCE&G rate increases approved by the PSC and the consumers are paying on average 35% more for SCE&G’s electricity than they were in January of 2008.

Now SCE&G wants to increase the cost of the nuclear plants another $286 million and for the consumers to pay for it.

What is the money for????? We don’t have an answer to that yet.

Here is what we do know. Last week SCE&G announced that it had a new construction contract with Westinghouse and its vendor partners to build the nuclear plants.  SCE&G has blamed the now terminated vendor, Chicago Bridge & Iron, for causing all the cost overruns and schedule delays.  Fluor Corporation will now do the construction management.

So why does substituting a player on the SCE&G team cost the ratepayers another unanticipated $286 million (which the PSC will have to approve)?

This is where all the press releases from the parties and the press coverage so far fail the public.

Is the design of the nuclear plants changing requiring more steel, cement or labor?

Is the final product going to be better in some significant way?

Is the electricity to be generated going to be less expensive?

Or is the cost of building the plant going up $286 million due to some past or present imprudent decision of SCE&G that is resulting in no benefit to the ratepayers except being obligated to unnecessary financial costs.

So far the people I talk to don’t know the answer to the $286 million question and those that know aren’t talking (which raises a bunch of red flags).

But the consumers have a right to know and know now…not later after SCE&G talks the PSC into approving yet another additional cost to the customers.

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Join our “SCE&G Enough Is Enough” advocacy team by sending an email to sbchamber@scsbc.org and put “SCE&G Enough Is Enough” in the subject line.  You will receive information needed to keep informed and engaged in the campaign. 

 

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