The South Carolina Public Power and Water Utility Board has approved a significant agreement, paving the way for a potential sale of the partially constructed VC SummerAP1000 units to Brookfield Asset Management. This move marks a pivotal moment in the project's history, as Santee Cooper, the utility company, has been in negotiations with Brookfield since October. The memorandum of understanding (MoU) establishes a formal feasibility period, aiming to complete the units and unlock a range of benefits.
The deal offers Santee Cooper a substantial cash payment of USD2.7 billion, contingent on reaching a Final Investment Decision (FID) and committing to the construction. Additionally, Santee Cooper will secure a 25% ownership share, proportional to the capacity, once the units become operational. This ownership stake could be subject to adjustments based on the final construction costs.
The agreement also outlines a clear path to FID, estimated to take 18-24 months. Brookfield is tasked with determining initial feasibility, setting a target date for FID, and crafting an economic development plan. This plan must prioritize local talent and resources, including South Carolina companies and the workforce, educational partnerships, and investment in workforce development, particularly for veterans. Santee Cooper will collaborate with Brookfield on feasibility evaluations and detailed construction planning.
This development is particularly notable given the project's history. Construction at VC Summer began in 2013, but it faced a setback in 2017 when the reactor vendor, Westinghouse, filed for bankruptcy. The project owners, Scana subsidiary South Carolina Electric & Gas Company (SCE&G) and Santee Cooper, decided to halt construction. SCE&G, now known as Dominion Energy South Carolina, transferred its interest to Santee Cooper in 2018. Santee Cooper then initiated a competitive bidding process to find a third party to complete the unfinished nuclear units.
The approved MoU signifies a crucial step towards completing the VC Summer project, offering a sustainable and reliable energy source for South Carolina while positioning the state at the forefront of the nation's nuclear resurgence.
_80831.jpg)
