SCE&G Takes Formal Step To Withdraw From Project

SCANA Corp. said Thursday that its subsidiary South Carolina Electric & Gas Company, had taken the formal step of withdrawing from the V.C. Summer nuclear plant expansion project -- comprising of Units 2 and 3 at the plant -- by filing a formal request with the Nuclear Regulatory Commission (NRC) to withdraw the combined operating licenses (COLs) for two half-completed reactors.

V.C. Summer expansionThis week's notification follows the July 31, 2017 NRC notification that the company stopped construction activities on the VCS Units 2 and 3 site, SCANA noted..

"This notification is consistent with our plans for abandonment and helps to ensure we qualify for a tax deduction in 2017 so that we can capture approximately $2 billion for our customers to offset the costs of the new nuclear project," said incoming SCANA CFO Iris Griffin.

In its notification to the NRC, SCE&G states that it has irrevocably abandoned its interests in the VCS Units 2 and 3. "All of its completion and preservation activities have ceased," SCANA said. "Work is limited to only those actions required to place the site in a safe condition, terminate construction and close active permits."

SCE&G has offered to cede its abandoned interest in the VCS Units 2 and 3 project to Santee Cooper, for no consideration, noted SCANA. If, prior to the NRC approval of this request to withdraw the COLs, Santee Cooper chooses to seek to become the sole licensee for the project, SCE&G will support an application to the NRC to transfer the licenses to Santee Cooper, according to their press statement.

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  • An accruate report of SCANA's announcement.

    But, what does it mean?

    The NRC issues a "combined consrtruction and operating license" (often called a COL) allowing a company to build and operate a nuclear facility -- power plant, fuel assembly, etc.

    This has a term of 40 years.

    The NRC has established no process -- formal or otherwise -- for abandoning, withdrawing from or otherwise ending a COL.

    Is SCANA requesting creation of a process to get out from under the legal obligations undertaken whenit accepted the COL?