Santee Cooper seeks proposals to finish nuclear project that soaked ratepayers
State-owned Santee Cooper said Wednesday it will seek proposals to acquire and complete two nuclear reactors that were left unfinished when the power company walked away from the construction project eight years ago, leaving ratepayers on the hook amid rising costs and delays.
The company, which along with partner SCE&G had spent $9 billion when they quit the construction effort, issued a news release saying a construction restart is worth examining at the V.C. Summer nuclear site as energy needs grow across South Carolina.
Santee Cooper will seek proposals from interested parties about acquiring the project and its assets, and finishing one or both of the reactors. Data centers that use large amounts of power, as well as the state’s industrial growth, are driving the utility’s effort, officials said.
Restarting and finishing the project could add 2,200 megawatts of power, according to Santee Cooper. The company has said one reactor was about 40 percent complete and the other 20 percent complete when the project was stopped in 2017. Supporters, including Republican state Sen. Tom Davis of Beaufort, say it is a shame not to try and finish the project, if it can be done.
“We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI-driven data center demand, and the tech industry’s zero-carbon targets,” Santee Cooper chief executive Jimmy Staton said in the news release. “Considering the long timelines required to bring new nuclear units online, Santee Cooper has a unique opportunity to explore options for Summer Units 2 and 3 and their related assets that could allow someone to generate reliable, carbon emissions-free electricity on a meaningfully shortened timeline.”
The company said if the nuclear project can’t be finished, it wants interested companies to propose ‘’alternatives’’ at the V.C. Summer site in Fairfield County about 25 miles northwest of Columbia.
But because of the fiasco that followed the initial construction project, Santee Cooper says it has no plans to own or operate the nuclear units. Dominion Energy owns the site and operates the existing V.C. Summer reactor, which was built decades ago. Santee Cooper owns much of the leftover equipment.
Dominion Energy also has previously said it did not want to restart construction of the two reactors at V.C. Summer, but the company said in a statement Wednesday that “If the project is successfully completed, we would consider operating it.’’
When Santee Cooper and SCE&G, Dominion’s predecessor, quit the project, they left ratepayers on the hook for billions of dollars. Customers are still paying for the work, even though the project has been abandoned.
Under a law approved by the Legislature more than 15 years ago, the utilities had permission to charge ratepayers upfront, instead of seeking state approval to charge customers after the project was completed, the typical process. Some of SCE&G’s top executives were prosecuted criminally after failing to fully inform investors and the public about growing construction problems.
Nuclear safety watchdog Tom Clements said Santee Cooper is misguided to try and finish the project. It is relying on a little-used type of reactor, the AP 1000, and there are no guarantees equipment still on the site would be suitable today for a construction restart, he said. The project also would also face scrutiny from the U.S. Nuclear Regulatory Commission. A license for the project was canceled after the companies walked away
“I think it is wholly impractical,’’ he said.
Santee Cooper said a lot has been learned about the AP 1000 since 2017.
Clements and Leslie Minerd, a Columbia environmentalist who worked with Clements against the V.C. Summer expansion in 2017, also cited concerns that two new reactors would create more radioactive waste that would need to be disposed of.
“This is still no solution for the nuclear waste we have from power plants across the country,’’ Minerd said. “This just adds to it.’’
What types of companies would be interested in finishing the Summer project remain to be seen, but there has been discussion that companies with data centers could be among them. Data centers, like those operated by Google, draw enormous amounts of energy.
Santee Cooper’s announcement this week was expected.
Staton told state legislators during a hearing Jan. 15 about the company’s plans. The utility’s announcement also follows a recommendation by the S.C. Governor’s Nuclear Advisory Council, which issued a report in September saying that it is worth examining a restart of the two abandoned units.
Meanwhile, Davis, R-Beaufort, has spearheaded efforts in the Legislature encouraging Santee Cooper to issue the request for proposals to restart the nuclear project. His resolution has not been approved by the Legislature, but Davis said 37 of 46 senators support the measure..
“The joint resolution is important because it lets these potential bidders know that this is something worthwhile for them to spend money on,’’ Davis said in an interview. “It’s an important message to send in regard to this asset, which has a troubled history.’’
According to plans, a company called Centerview Partners LLC will put out the request for proposals from those interested in the V.C. Summer project. Those interested have until May 5 to provide responses to Centerview.
The V.C. Summer project was one of two under construction in the country when SCE&G and Santee Cooper walked away from the project following months of concern about the expense. The project involved a new type of nuclear reactor, which contributed to delays in putting the new units together.
Since that time, two new units have been built at the Vogtle nuclear site in Georgia, as well as in other parts of the world, that rely on the technology that was used at Summer. Santee Cooper says the technology has been proven at the Vogtle site and elsewhere.
Interest in restarting the V.C. Summer project comes at a time of growing debate about how to meet the state’s energy demands. A major bill has been introduced in the Legislature to make things easier for power companies to establish new sources of energy, such as a large natural gas plant in Colleton County. Critics say that bill could come at a cost to solar power and cut corners on environmental regulations.
This story was originally published January 22, 2025 at 6:01 PM.
