V.C. Summer a "nuclear debacle"
South Carolina Electric & Gas' V.C. Summer reactor project is coming under fire as a "nuclear debacle," with claims of half a billion dollar cost overruns, pushed-back end dates for project completion and significant construction challenges. The ire comes from Friends of the Earth.
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V.C. Summer Project. Credit: High Flyer |
"As construction becomes more complex and schedule delays mount, V.C. Summer is emerging as an epic mistake at least as big as Vogtle. We have already seen six pay-in-advance rate increases in the state attributed to the V.C. Summer project, and we estimate it already accounts for a whopping 11 percent of the total utility bill -- the charges in which are only for financing costs," said Tom Clements, Friends of the Earth representative. "State regulators refuse to require the nuclear utility to detail in monthly utility bills how much ratepayer money is being wasted on the nuclear project. We expect rates to skyrocket when capital costs start coming into the bill, which will place the utility in a precarious position with customers. The hidden rip-off of construction work in progress payments situation in South Carolina, which is the only reason the project is proceeding, is even worse than in Georgia."
Friends of the Earth contends that in January 2014, the South Carolina Office of Regulatory Staff quietly released its "Review of South Carolina Electric & Gas Company's 2013 3rd Quarter Report" on V. C. Summer Units 2 and 3.
According to an analysis of the state review by Friends of the Earth, the report shows a $478 million cost overrun at the V.C. Summer reactor construction site, as well as a significant pushback in the delivery date for the new reactor.
According to the state report, "SCE&G's Milestone Schedule reflects a delay in the Unit 2 substantial completion date from March 15, 2017 to December 15, 2017, and a delay from May 15, 2018 to December 15, 2018 in the Unit 3 substantial completion date."
Further, the state found that 16 key milestones for the new V.C. Summer reactor have already been delayed by 10 months or more months. Continuing problems with module construction could mean overall delays of 18 months or longer, which must be approved by the South Carolina Public Service Commission.
South Carolina Public Service Authority, Santee Cooper, a 45 percent partner in the project that is not regulated by the PSC, wants to divest all or part of its share. The board of Santee Cooper is likely to vote at the board meeting on January 27 to sell a portion of the project to Duke Energy.
To date, approximately $4.5 billion has already been spent on V.C. Summer, according to Friends of the Earth.
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