SCE&G Files Petition For V.C. Summer Cost And Schedule Revisions

SCANA Corporation said Thursday that its subsidiary Southern Carolina Electric & Gas Company had filed a petition with the Public Service Commission of South Carolina to allow it to revise the construction and capital cost schedules for the two new nuclear reactors at the V.C. Summer Nuclear Generating Station.

The filing is the second cost and scheduling revision for the project. The prior completion dates for two Westinghouse AP1000 reactors was set for 2018 and 2019 (after original estimates of completion in 2016 and 2017). The new construction schedule “indicates a substantial completion date for Unit 2 of June 2019 and … for Unit 3 of June 2020,” the company said in a statement.

Costs have now risen to a total of close to $11 billion, up $1.2 billion from a previous estimate of $9.8 billion.

SCANA said it was continuing to negotiate with contractors Westinghouse Electric Company and Chicago Bridge & Iron, but that it could not avoid filing a petition to update the schedule, “as several project milestone dates previously approved by the SCPSC have now exceeded their allowable contingency time periods.”

The petition filed with the state commission also includes the latest capital cost revision, amounting to $698 million, out of which $539 million is due to construction delays and “other contested costs.”

SCANA, which owns 55 percent of the project, said its total project capital cost is now estimated at approximately $5.2 billion (in 2007 dollars) or $6.8 billion including escalation and allowance for funds used during construction." SCANA noted that construction and capital costs schedules are subjected to continuous review and negotiations.

Public utility Santee Cooper owns the remaining 45 percent share of the project.

SCANA Chairman and Chief Executive Officer Kevin Marsh said construction progress has been substantial. “As outlined in the petition, 85 percent of the major equipment for Unit 2 has been received on site,” he said.

Bottom containment vessel heads are in place for both new units, three out of three steel rings (the vertical wall) are in place for Unit 2, which is near completion.

A total of twenty-three million man-hours have been put into the project “with an excellent safety record,” Marsh said.

The construction strategy of offsite module fabrication has not accomplished what it was supposed to do, which was avoid unnecessary delays. Instead, design and fabrication issues associated with sub modules has been the cause of delays, SCANA said.

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