Why South Carolina should be excited about reviving the V.C. Summer nuclear plant | Opinion

Imagine spending $9 billion on a project that never sees completion. That’s the stark reality of the nuclear reactors Santee Cooper abandoned at the V.C. Summer power station in Fairfield County in 2017.

The unfinished reactors are symbols of stalled ambition and sunk costs, burdening utility customers forced to pay for construction before it was done and hindering our state’s progress. But now, there’s a real opportunity to turn this story around, and it’s one that all South Carolinians should champion.

You might be asking: Why revisit a project that’s been such a costly failure? How do we ensure history doesn’t repeat itself? What’s in it for me as a ratepayer or a resident of South Carolina?

These are all valid questions, and they deserve clear answers.

Santee Cooper’s recent decision to solicit private-sector bids to purchase and complete the unfinished reactors at the V.C. Summer site addresses these concerns head-on and offers a pathway to significant benefits for our state.

Here’s why completing this project is critical and how it addresses key concerns.

Right now, $5.7 billion of the total spent on these reactors remains in the utilities’ rate base, keeping monthly bills higher for customers of Santee Cooper and Dominion Energy, which acquired Santee Cooper’s partner on the project.

If private-sector companies take it over, that financial burden could be lifted. Completed reactors would remove those sunk costs, providing direct relief to ratepayers and ensuring fairer energy costs moving forward.

The current system forces all South Carolinians to subsidize the energy needs of private companies, like data centers with enormous power demands. A private-sector completion of V.C. Summer’s Units 2 and 3 would shift this burden, requiring the companies that need this energy to shoulder the costs instead of ratepayers. This approach aligns costs with actual usage, creating a more equitable system.

Finishing the reactors would add 2,200 megawatts of carbon-free energy to our grid, reinforcing South Carolina’s leadership in nuclear power generation. Nuclear energy accounted for 55% of our in-state electricity production in 2022, the third highest in the nation. This project would not only sustain but also enhance our competitive edge in this critical sector, ensuring we remain a leader in clean, reliable energy.

It’s natural to be wary of revisiting a project with a troubled past, but several factors make success far more likely today:

1. The AP1000 reactors at V.C. Summer faced first-of-a-kind challenges when construction began. Since then, two reactors in Georgia and four in China have been successfully completed, providing valuable lessons and streamlining construction processes.

2. Recent inspections confirm that Units 2 and 3 remain in excellent condition, providing a solid foundation for resuming work.

3. New federal incentives such as tax credits, grants and loan guarantees significantly reduce the financial risks of building nuclear projects. These incentives could cover up to 40% of construction costs and secure loans for 80% of the reactors’ completed value.

4. The private sector has shown increasing interest in nuclear investments, with partnerships like that of Constellation and Microsoft to restart Three Mile Island’s Unit 1 demonstrating new funding models.

Santee Cooper’s request for proposals to complete Units 2 and 3 is a critical first step, with responses due in May. This process will reveal whether private companies are willing to commit their capital and expertise to finish the reactors. However, for this initiative to succeed, it’s essential that South Carolina’s state leaders send a clear message of support.

The South Carolina General Assembly and Gov. Henry McMaster must act decisively to encourage private-sector investment. A joint resolution expressing support sponsored by 37 of the state’s 46 senators is working its way through the Statehouse.

This legislation must move swiftly through the process and reach the governor’s desk to ensure robust and competitive bidding while strengthening applications for federal incentives.

This is a pivotal moment for South Carolina. Completing the V.C. Summer reactors would offer relief for ratepayers, a fairer energy cost structure, cleaner power and a renewed position of leadership in nuclear energy. But this opportunity requires decisive action and broad support.

Please contact your state senator and urge them to advance this critical legislation. With the right leadership and private-sector engagement, we can turn a costly failure into a transformative success for South Carolina.