SCANA confirms delay in V.C. Summer 2 and 3 schedule

SCANA (NYSE:SCG) confirmed Aug. 11 that completion of the V.C. Summer 2 and 3 nuclear units in Fairfield County, S.C., is going to take longer than previously planned, a delay that the company has been hinting at for months.

The company now expects substantial completion of Unit 2 is expected to occur in late 2018 or the first half of 2019 and that the substantial completion of Unit 3 may be approximately 12 months later.

The substantial completion date currently approved by state regulators for Unit 2 is March 15, 2017 (with an 18-month contingency period). The consortium now expects the substantial completion of Unit 2 to occur in late 2018 or during the first half of 2019 with Unit 3 being substantially complete approximately 12 months later.

Utility South Carolina Electric & Gas (SCE&G) COO Steve Byrne  said the company does not currently have a cost increase figure from the consortium of Chicago Bridge & Iron (NYSE:CBI) and Westinghouse Electric.

SCANA officials said that the consortium has indicated for months there would be some schedule slippage, but the consortium has now been more definitive about the timetable.

SCANA officials said that 100 of the 146 milestone associated with the two new nuclear units have been met. SCANA officials said the timing of completion of certain “modules” coming from CB&I in Lake Charles, La., are the primary reason for the delay.

Byrne expects that the first cost proposal from the consortium  “will be something that I don’t like.” Nevertheless, SCANA expects to get the cost issue confirmed by the end of the year, Byrne said.

In addition, SCANA expects to make a regular update filing with the South Carolina Public Service Commission Aug. 14.

 The consortium’s proposed completion dates are “preliminary” do not reflect all efforts that may be possible to mitigate delay, nor has SCE&G accepted this new schedule, SCANA officials said.

SCANA had not received the information prior to its recent second quarter earnings call on July 31 or it would have said so then.

SCANA officials said they have given credit ratings agencies “heads up” about the delay. SCANA officials the recent delay won’t affect its plans to purchase an additional 5% of the two new units from the share controlled by minority owner Santee Cooper.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.