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SCE&G's share of nuke expansion project rises to $7.2B

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SCE&G's share of nuke expansion project rises to $7.2B

's share of construction costs for the nuclear expansionproject has climbed to about $7.2 billion.

Projectedgross construction costs have increased by approximately $96 million since theend of 2015, the SCANACorp. utility said in its latest quarterly report filed May 6 withthe Public Service Commission of South Carolina. The report covers constructionmilestones and costs as of March 31.

SCE&Gand state-owned utility Santee Cooper, legally known as the , are building two 1,117-MW nuclear units at V.C. Summernear Jenkinsville, S.C.

SCE&G's55% share of the project cost has now climbed from $6.3 billion, as approved byregulators in 2009, to $7.2 billion, including escalation and allowance forfunds used during construction. The new units are still expected to be finishedat the end of August 2019 and 2020, respectively, according to the report.

Theonline dates have been pushed backfrom the original dates of April 2016 and January 2019 because of anddelays reported bythe consortium building the reactors, initially consisting of andChicago Bridge & Iron Co.N.V.

However,SCE&G has reachedsettlements with the South Carolina Office of Regulatory Staff andthe South Carolina Energy Users Committee over the rising costs and withWestinghouse, which has takenover as the contractor for V.C. Summer and a delayed nuclearexpansion project in Georgia.

Aspart of the settlement with Westinghouse, SCE&G can a $7.6 billionfixed-price option to cover its construction costs. Payments under thefixed-price option would be based on "actual results" instead of theconstruction calendar.

Thecompany has indicated that it will make a decision on this option in the secondquarter.

SCE&Gsaid in its latest report that 110 out of 146 Base Load Review Act milestoneshave been completed as of March 31. "Of the remaining 36milestones, 31 milestones have been delayed by 14 months or less," thereport stated.