Residents of the Palmetto State could be stuck holding the bag for a failed Nuclear power project according to the New York Times article seen here. SCE&G, a subsidiary of SCANA, and Santee Cooper decided to call it quits on the construction of two nuclear power reactors, referred to as V.C. Summer. This comes after over $9 billion dollars was poured into the project a cost partly subsidized by – you guessed it- Santee Cooper customers.
The project was hampered by an increase in inexpensive natural gas options and the untimely bankruptcy of primary contractor for V.C. Summer, Westinghouse– causing cost to balloon on the already over budget and behind schedule project.In a statement released by SCANA, the company’s Chief Executive Officer, Kevin Marsh underscored the tremendous effect the closing of Westinghouse had on the decision to ultimately abandon the project, remarking the Westinghouse bankruptcy “eliminated the benefits of the fixed price contract to our customers, investors, and other stakeholders”
The same statement by SCANA also cited “additional costs to complete the Units… [and]… uncertainty regarding the availability of production tax credits” as reasons the project became “prohibitively expensive”.
Perhaps the most tragic consequence of the shutdown of V.C. Summer is the unexpected loss of an estimated 5,000 jobs. Many South Carolina workers and those who have moved to the state specifically for work on the project will now find themselves unemployed, with little to no notice.
The failure of the V.C. Summer project raises questions about the future of nuclear energy in the country and future developments will likely be undertaken with heightened caution.