McMaster favors restarting failed nuclear project that hit ratepayers in the wallet
Gov. Henry McMaster expressed support this week for restarting a nuclear expansion project that was never finished after utilities charged ratepayers billions of dollars for its cost, then determined eight years ago that the effort was too expensive and time-consuming to finish.
But as momentum builds among some legislators to study completing the expansion, skepticism remains from other lawmakers about the risk and reality of such a complex and expensive project in South Carolina.
During a legislative meeting Thursday, Sens. Chip Campsen, R-Charleston, and Russell Ott, D- Calhoun, peppered top utility executives with questions about the potential pitfalls of cranking up construction at the Fairfield County site.
Ott said he’s not opposed to studying whether the project can be completed, but he needs to know more.
“We all … need to come up with many questions to make sure that we think about the potential pitfalls of something like this,’’ Ott said, noting that he doesn’t want a repeat of the 2017 nuclear construction debacle.
“I just don’t want us to be blinded by the desire and the hope of turning a bad situation into something good that we end up having additional problems.’’
Campsen, saying there was no performance bond to cover costs from the failed project, pressed Dominion Energy and Santee Cooper officials about whether ratepayers would bear any risk for a restart. Customers are still paying for the construction project, even though it was not completed.
Both Jimmy Staton, the chief executive at Santee Cooper, and Dominion’s South Carolina leader, Keller Kissam, said they have no intention of exposing ratepayers to additional risks from the project.
“We do not intend to take that risk,’’ Staton said during Thursday’s meeting.
The idea is to have a consortium of companies finish the project, instead of Santee Cooper and Dominion, although Dominion would entertain the idea of running the plants if finished, Staton and Kissam said. Santee Cooper has put out requests for proposals for companies to express interest in completing the project privately.
Staton told senators Santee Cooper has seen ample interest from companies that might want to restart the project. Santee Cooper’s request for proposals gives companies interested in finishing the project until May 5 to provide their plans. Santee Cooper sent out seven non-disclosure agreements Wednesday to companies interested in the project, Staton said.
“I would expect to have more of those in the coming days,’’ he said. ‘I would tell you we have an incredibly robust interest in these facilities.’’
The project site, about 25 miles northwest of Columbia, has a number of partially finished buildings adjacent to V.C. Summer’s existing nuclear reactor, which began in the early 1980s and provides about 1,000 megawatts of energy. Some equipment that was not sold after the project shut down in 2017 also remains on the property.
Interest is rising in restarting the Summer expansion because state leaders and utility officials say South Carolina is running low on power. As the state grows and recruits more industry, it needs additional power supplies, particularly as it moves away from coal as an energy source, they say.
The two major projects under most discussion are restarting V.C. Summer and building a large natural gas plant in the Canadys community of rural Colleton County. That plant would be on the site of an old coal-fired power plant.
In his state of the state speech Wednesday, McMaster was clear about South Carolina’s need for more energy supplies – and completing two reactors at the V.C. Summer site is high on the list.
“I believe that restarting these two reactors will not only help fuel our state’s future power needs, but will also usher in a nuclear power renaissance across the country, one that will spur nationwide investment and construction of new nuclear power generation,’’ McMaster said in his speech, which was broadcast statewide. “This will provide America with ample, clean, resilient energy for the future and deter challenges to our national security.’’
McMaster indicated support for changing rules and regulations to make building nuclear and natural gas power plants easier. A major House bill under consideration this year would put some limits on rules overseeing the environment and consumer protection. Some lawmakers say existing rules could delay the ability to build power plants. Kissam said during Thursday’s meeting he supports permitting reform.
“Limitations and obstacles on the state’s ability to receive and utilize natural gas must be removed,’’ the governor said. “We must prepare now for a future driven by nuclear power generation on scales both large and small. And we must identify any modifications or additions to existing laws, regulations, policies, or procedures that may be necessary to meet these needs.’’
The V.C. Summer project is considered by many to be the largest construction failure in the state’s history.
Launched after legislators changed rules to make construction easier, the project moved along quietly until problems began to surface in 2016. Cost overruns and delays raised questions, and the bankruptcy of a major contractor, Westinghouse, eventually doomed the project in 2017.
Some top utility executives were criminally charged for what prosecutors said was a failure to keep investors and the public informed about troubles that were occurring. Ultimately, the companies spent $9 billion before quitting the effort. Ratepayers had been charged upfront for the costs of construction, a departure from the traditional process that allows costs to be recovered from customers when construction is finished.
Completing the V.C. Summer project would cost billions more dollars and likely become a time-consuming process. One idea being floated in the Legislature is to entice private companies that use large amounts of energy, such as Google, to help pay for construction.
A Google official made no such commitment during a legislature meeting earlier in the week, but did say the company is a supporter of nuclear power.
Former Public Service Commissioner Tom Ervin told The State that completing the V.C. Summer project would be difficult, expensive and could take years. He was doubtful major energy users like Google would kick in enough money, if anything, to make a difference.
“That’s kind of wishful thinking,’’ he said. “You’re talking about spending billions of dollars over probably seven to 10 years by the time you get the permitting, you get the regulatory approvals, environmental approvals and then you put it out for construction bids.’’’
Of V.C. Summer, he said “it remains to be seen whether anything but that site itself would be useful going forward. We would welcome that kind of investment, but I think it’s unlikely.’’
This story has been updated with a comment from Jimmy Staton.
This story was originally published January 30, 2025 at 12:51 PM.
