Westinghouse Electric Company Chief Executive Officer Jose Emeterio Gutiérrez.said the company was “extremely disappointed” at the decision by Santee Cooper and the South Carolina Electric and Gas Company to back away from its commitments to the V.C. Summer power plant expansion project, which was to deploy two AP1000 reactors designed by Westinghouse.
“While we respect Santee Cooper’s decision, we are extremely disappointed,” said José Emeterio Gutierrez, Westinghouse president and chief executive officer. “The South Carolina economy is sure to feel the negative impact of losing over five thousand high-paying, long-term jobs, as well as not having available the reliable, clean, safe and affordable energy these units would provide. Also, at a time when other nuclear plants are being retired, the U.S. energy sector is sure to feel the stunting impact of walking away from these two nuclear units.”
Westinghouse released the statements on Tuesday while announcing that the company had reached a bankruptcy milestone by submitting its five year business plan to the company's debtor-in-possession financing lenders and unsecured creditors committee on July 27. In its five year plan, the company said it would reduce its global workforce by 7 percent as part of its restructuring efforts.
Various news sources, including Reuters, reported in July that Westinghouse would likely be sold to a U.S.-based company by the end of 2018.
“Our five-year plan provides Westinghouse stakeholders, including our employees, customers and future investors, insight into how we will achieve conservative, sustainable growth over the term,” Gutiérrez said. “We have already begun to align our operations to the plan and look forward to moving through the Chapter 11 proceedings in a swift manner.” Current reports indicate that Westinghouse will remain under Chapter 11 protections through March 2018.
The financial plan “integrates Westinghouse’s strategic initiatives, competitive landscape and market dynamics into a five-year financial forecast. Comprised of strategic transformation initiatives resulting in savings of $205 million in run rate earnings before interest, taxes, depreciation and amortization (EBITDA) over the five-year term, the plan supports the successful operation of the company’s core businesses as well as the company’s New Projects Business. One component of these savings will be adjustment of the company’s global headcount; for fiscal year 2017 this will be approximately seven percent,” the company said.
The nuclear power industry and the global business community are interested in the fate of various Westinghouse projects beyond the V.C. Summer expansion project, which was to culminate in the commissioning of two new reactors. Westinghouse has also been in discussions with India over a possible deal involving six Westinghouse model reactors. The company has said discussions continue despite the bankruptcy filing.
“Meanwhile, the many benefits of the AP1000 plant design, including its passive safety features and strong licensing pedigree, continue to be recognized worldwide,” the company said. “ Work continues on two AP1000 units at Georgia Power’s Vogtle site, under a long-term services agreement, and the world’s first four AP1000 units are nearing successful completion at the Sanmen and Haiyang sites in China.”