South Carolina Electric & Gas forecasts spending on its share of two new reactor units under construction at the V.C. Summer Nuclear Station is about $292 million below the capital cost schedule approved by state regulators.
SCE&G, which will own 55% of the $9.8 billion project, disclosed the figure in a recent quarterly update to the S.C. Public Service Commission. The utility’s partner is state-operated Santee Cooper.
Lower interest rates and having nearly two-thirds of the contract price fixed or fixed with agreed-upon inflation factors are holding down costs, said executives of SCE&G’s parent, Cayce-based energy provider SCANA.
Under the state’s Base Load Review Act, SCE&G has filed for an average 2.5% electric rate increase to cover the nuclear project’s borrowing costs.
SCE&G estimates that by paying financing costs while construction is under way, as opposed to waiting until the project is completed, should lower the cost of building the units by about $1 billion...
Read the full article at GSA Business.