Santee Cooper, the state owned utility in South Carolina that is minority owner of the now suspended V.C. Summer nuclear power plant expansion project, already knows what it is getting for Christmas – the Fairfield County site of the two-reactor project that Santee Cooper and majority owner South Carolina Electric and Gas (SCE&G) called a halt to this summer.
In its latest reconciliation gesture to appease angry customers and state politicians after pulling the rug out from under a project after $9 billion had been spent, SCANA, the parent corporation of SCE&G, said this week that it would gift the site to Santee Cooper in the hopes that it will be adequately maintained so that the project can be completed someday in the future.
The unknown at present is whether or not the state will accept the gift, which could turn out to be a headache rather than a windfall, given the responsibilities and expenses that come with maintaining an enormous construction site.
Halting the project has shaken the state from ratepayers to the governor's residence. When the project was called off, ratepayers had already spent about $2 billion just to pay interest on debt associated with the project, resulting in an average rate hike of $27 per month, according to the Associated Press.
Besides ongoing maintenance and security costs for Santee Cooper if they accept the gift, there are tax implications behind the gesture, as well, The State reported. By walking away from the site, SCANA would argue that it is entitled to a $2 billion deduction in their taxes. Part of that tax write-off would be applied towards SCANA's debt, while some would be applied to lowering ratepayer bills, SCANA has said.
Santee Cooper, which owns 45 percent of the project, has already incurred $4 billion in debt due to the expansion project that was halted approximately halfway to completion. SCE&G, as part of the deal, would take $240 million in unpaid bills off of Santee Cooper's books, while Santee Cooper would be responsible for what is estimated to be $15 million a year in maintenance and security costs.