nuclear-news

The fixed price option could give greater cost and schedule certainty to customers of Santee Cooper and South Carolina Electric & Gas Co. (SCE&G), joint owners of the new nuclear project.

The state-owned utility’s board also approved the sale of $831 million in revenue obligation bonds, primarily to finance the ongoing nuclear construction project. A portion of the proceeds will be used to refinance existing utility debt……..

Santee Cooper owns 45 percent of the nuclear expansion project, and SCE&G owns 55 percent. The two utilities negotiated an amended EPC Agreement with Westinghouse Electric Co. LLC in October, featuring terms that incentivize schedule adherence and shift financial risk to Westinghouse for any additional delays in the current scope of work. The amended EPC Agreement also offers a fixed price option, and Santee Cooper’s authorization to proceed is contingent upon SCE&G receiving approval this fall of a related petition being considered by the South Carolina Public Service Commission.

Exercising this option will increase Santee Cooper’s budget for the nuclear project by about 20 percent……..

The 2016BD bond sale included $508 million in tax-exempt series B bonds and $323 million in taxable series D bonds. The series B issue includes $91.3 million in refunding bonds, which provide $9 million in net present value savings. The term “tax exempt” means exempt from federal and South Carolina income taxes for South Carolina residents under current law……http://www.berkeleyind.com/20160709/160709801/santee-cooper-works-toward-fixing-costs-to-complete-nuclear-station