$2.7 billion offered to finish V.C. Summer nuclear project for Santee Cooper
THE STATE
If the South Carolina-operated utility and an assets management firm can strike a deal to finish two abandoned nuclear reactors in Fairfield County, Santee Cooper will receive $2.7 billion, CEO Jimmy Staton told the board Monday morning. Santee Cooper would also own up to 25% of the two new nuclear reactors at V.C. Summer once operational, including a quarter of the energy generated, said its spokesperson Mollie Gore. The reactors are expected to generate 2,200 megawatts of electricity.
The utility chose Brookfield Asset Management in late October to finish the two, partially completed nuclear reactors at V.C. Summer after a monthslong selection process. Now, Santee Cooper has revealed more details on the agreement. It will solely work with Brookfield on the project. Brookfield is a New York-based company with over $1 trillion in assets across multiple sectors, including renewable energy. It already owns $3 billion in assets in South Carolina.
Construction of the two nuclear reactors was abandoned less than a decade ago. In 2017, utilities Santee Cooper and now defunct SCE&G walked away from the V.C. Summer project amid rising costs and delays. Ratepayers spent about $9 billion on the effort, without generating any electricity. In October, Staton told reporters the utility would use any funds from the deal with Brookfield to pay off debt associated with the initial failed construction. If Brookfield and Santee Cooper strike a deal, the utility will receive $2.7 billion for the assets, Staton told the board. Santee Cooper won’t receive the $2.7 billion until Brookfield and the South Carolina utility finalize a deal, which could take 18-24 months, according to a news release.
The push to produce energy at V.C. Summer comes as data centers and population growth has increased the projected demand for power in South Carolina. Santee Cooper projects its electric load to increase by 18% by 2030, and 32% by 2035, according to a presentation from the utility. The Trump administration has also encouraged the use of nuclear energy through executive orders, in addition to maintaining tax credits for the energy source when other renewables’ benefits were axed in the budget reconciliation bill. Additionally, days after Santee Cooper announced its partnership with Brookfield, the federal government announced a plan to help build $80 billion in AP 1000 nuclear reactors with Brookfield, according to a news release.
The federal partnership with Brookfield is not related to Santee Cooper’s deal with the company. The nuclear reactors at V.C. Summer will also be AP 1000s, which were designed and sold by Westinghouse, a company involved in the original construction plans. Brookfield acquired Westinghouse out of bankruptcy in 2018. Westinghouse owns a nuclear fuel plant south of Columbia and employs about 2,000 people.
New details on V.C. Summer deal The Santee Cooper board of directors voted to enter a memorandum of understanding with Brookfield on Monday morning. The agreement comes six weeks after the two companies’ initially agreed to begin vetting a plan to complete V.C. Summer. During the board meeting, Staton revealed new financial details of the project and an updated timeline. Santee Cooper does not want to pass along any capital costs of completing the reactors to consumers.
The utility will be reimbursed for expenses associated with working with Brookfield to make a deal, Staton said Monday. “It’s really going to give us an opportunity to return to our customers the value of the the investment that they’ve already made,” Staton said after thanking the board for approving the memorandum of understanding.
Over the next several months, Brookfield and Santee Cooper will choose a project manager and engineering, procurement and construction companies, according to a presentation. The companies will also make sure the project is feasible before making a final investment decision. Santee Cooper will receive the $2.7 billion once a final deal is struck.