nuclear-news

South Carolina new nuclear reactors might have license, but costs are looking too great

Summer Nuclear Unit Already Behind As It Gets Federal Green Light, AOL Energy, By Margaret Ryan  April 3, 2012 The long-expected federal decision giving SCANA a license to build two new nuclear reactors in South Carolina came along with news that project has already encountered delays and cost overruns. ….
Cost estimates are being given as about $9.8 billion for the Summer
units, without financing costs, and $14 billion for the Vogtle units,
including financing costs.

Overruns Spark Discussion

News emerged in February that SCANA and Southern were in talks with
Toshiba-owned Westinghouse and project manager Shaw over some $400
million in cost overruns – about $340 million at Summer and the
balance at Vogtle.

The day before the NRC licensing vote, SCANA’s South Carolina Electric
& Gas unit announced a “preliminary agreement” with Westinghouse and
Shaw for SCANA and Summer partner Santee Cooper to pick up $138
million of the overrun.

According to reports filed with state regulators and company
statements, part of the cost at Summer stems from unanticipated
problems with the bedrock that are complicating construction.
Other problems for both sites stem from NRC’s restudy of the AP1000
shield building, and from manufacturing delays due to NRC quality
assurance issues with modular fabrication at Shaw’s Louisiana
plant…..
Nuclear critics who oppose the new units leaped on news of the cost
overruns as proof the projects will run far beyond estimates and
further evidence both should be halted. State regulators in both
Georgia and South Carolina have so far backed the projects and allowed
some costs to be recovered.

April 4, 2012 - Posted by Christina Macpherson | business and costs