nuclear-news

Trump cuts Westinghouse reactors deal

October 30, 2025, https://beyondnuclear.org/trump-cuts-westinghouse-reactors-deal/

On October 28, 2025, the Trump White House announced its commitment to stake at least $80 billion of US federal dollars to initiate yet another very risky run at new construction of Westinghouse Electric Company’s  AP1000 nuclear stations. This is the follow-up to his May 23, 2025 executive orders to “unleash” more atomic power in the nation. Only this time, the Trump deal entitles the federal government, the designated buyer of the new reactors, to a 20% equity stake thereafter in Westinghouse’s returns in excess of $17.5 billion. Trump’s financing deal was cut with Westinghouse’s newest parent companies Brookfield Asset Management and Cameco, after the March 29, 2021 Westinghouse bankruptcy as of “the largest historic builder of nuclear power plants in the world.” At the time of the bankruptcy, Westinghouse was a wholly owned subsidiary of Japan’s Toshiba Corporation. Toshiba itself only narrowly escaped the financial meltdown.

On his latest visit to Asia, President Trump signed a nuclear deal with Japan newest, most hawkish and first woman Prime Minister, Saneae Takaichi, also announced on October 28^th with an agreement to invest  hundreds of billions of dollars in US critical infrastructure including in Trump’s pledge to domestically build new Westinghouse AP1000 reactor units and small modular reactors in the United States conditional on the involvement of Japanese contractors.

The Trump deal doesn’t specify just how much US taxpayer money will be spent on the new Westinghouse units Trump wants to build.

But one thing should be clear, significant financial risks are still there. Only four Westinghouse AP1000 units were ever financed in the US and remain a testament to nuclear power high risk, recurring and gross failure to financially control runaway cost-of-completion and time-to-completion estimates.  Those new AP-1000 project orders were the only four units that managed to muster financing in South Carolina (V.C. Summer Units 2 & 3) and Georgia (Vogtle Units 3 & 4) of 34 US units announced in the 2007 launch with much ballyhoo of a so-called “nuclear renaissance.”  The two projects’ financing was only made possible by the two state regulators indenturing their electricity ratepayers to Construction Work In Progress (CWIP) charges through their respective Public Utility Commissions levying a series of customer rate hikes in advance of electricity usage to guarantee construction financing.  Otherwise, without public ratepayer on the hook for the advanced financing, a total of 30 other proposed new “advanced” reactor units (including 8 additional AP1000 units) were cancelled and withdrawn nationwide without a shovel in the ground.

South Carolina’s V.C. Summer AP1000 construction project was abandoned in 2017 with $10 billion in sunk costs and shrouded in FBI arrests, federal criminal convictions and guilty pleas by two high ranking SCANA utility executives, CEO Kevin Marsh, and Vice President Stephen Byrne, pleaded guilty to defraud South Carolina state regulators and its ratepayers after being charged with the crime by the U.S. Attorney’s office. Additionally, two Westinghouse Electric executives, Carl Churchman, a Vice President, pled guilty to making related false statements to the FBI investigators and sentenced to serve house detention and Jeffrey A. Benjamin, Senior Vice President for new plants and major products, who plead guilty to conspiracy to commit wire and securities fraud and serving one year and a day in federal prison.

Georgia’s Vogtle AP1000 two-unit project was eventually completed seven years behind the schedule to start operations in 2023 and 2024 with their original estimated combined cost of construction ballooning from $14 billion to an estimated $36.8 billion.  Due to the expansion, massive rate hikes and prolonged delay, the Vogtle nuclear power station is now the largest and most expensive generator of electricity by atomic power in the United States.

In other related news, on Friday, October 24, 2025, South Carolina’s Santee Cooper Board of Directors unanimously voted to authorized the state-owned utility to sign a letter of intent to ask Brookfield Assets Management, previously mentioned as one of Westinghouse’s parent companies, to sign a Memorandum of Understanding (MOU) to take over the completion of the previously abandoned and only partially built nuclear reactors.

Santee Cooper’s CEO Jimmy Stanton was quoted by The State news service to pledge that, “There are no additional financial risks for our customers at all”. The Letter of Intent is meant to be the first step in a new permitting for the completion of construction project and then obtaining a federal license for full power operations.  The original Nuclear Regulatory Commission (NRC) combined construction and operating license that Santee Cooper and SCE&G held is no longer valid following their 2017 abandonment of construction. The new licensee, assuming that to be Brookfield Assets or its qualified proxy, will need to go back to the US NRC and the state to reacquire the necessary  permits to restart what is now called “the greatest construction failure in state history.” Santee Cooper has said it does not plan to hold the federal construction permit. Customers of Dominion Energy, the VC Summer Unit 1 new operator, are already on the hook to pay roughly 5% of their monthly bills for the original expansion project.

November 1, 2025 - Posted by Christina Macpherson | business and costs, politics, USA