“Robust” interest in Summer’s partially constructed reactors
Santee Cooper is satisfied with the response generated by its initial request for proposals to buy what remains of the Summer-2 and -3 nuclear power plant project in South Carolina. The RFP was issued in January and the application window closed May 5.
Without providing specifics, the utility announced that it received several proposals from construction, utility, financial, and technology firms from across the globe.
Jimmy Staton, Santee Cooper’s president and chief executive, said he is pleased with the level of response and promised a deliberate review process.
Quotable: “The depth and breadth of experience represented by the responding entities is encouraging, and we are committed to giving the review of responses the level of seriousness that it needs and deserves,” Staton said.
“We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI-driven data center demand, and the tech industry’s zero-carbon targets,” Stanton said at the outset of the RFP. “Considering the long timelines required to bring new nuclear units on line, Santee Cooper has a unique opportunity to explore options for Summer Units 2 and 3 and their related assets that could allow someone to generate reliable, carbon emissions–free electricity on a meaningfully shortened timeline.”
A closer look: South Carolina public utility Santee Cooper and partner South Carolina Electric & Gas (SCE&G) had big plans to build Summer-2 and -3 units, both housing Westinghouse AP1000 reactors, at the site where the 966-MWe Summer-1 reactor has operated for decades.
They applied for combined construction and operating licenses (COLs) in March 2008, and the Nuclear Regulatory issued them in 2012. But after years of costly delays on the project and the bankruptcy of Westinghouse, the partnership fell apart in 2017.
Just before the project halted, Nuclear News reported in June 2017 that the construction project was “about 64 percent complete in [engineering, procurement, and construction] terms.” As chronicled in indictments and settlements, the fallout from the project was ugly. Ultimately, the courts left Santee Cooper with ownership of nonnuclear assets at the site.
In 2018, SCE&G transferred its share of the assets to Santee Cooper and a final settlement in 2020 gave full ownership and rights to sell all nonnuclear equipment.
What’s next: Santee Cooper is working with Centerview Partners LLC and J.P. Morgan to review submissions and manage next steps. The process is expected to take 9–18 months, which includes time for the entities chosen for the project to complete necessary due diligence.
“Santee Cooper’s motivation in this process is to maximize the value of the assets at [the site in] Jenkinsville for the benefit of our customers,” Staton said. “Santee Cooper does not want to own or operate these units, but if we can enable someone else to bring these units online, then South Carolina also benefits from the additional emissions-free capacity the units would provide.”
Because the NRC terminated the COLs for the two reactors in March 2019—at the request of the project owners—any purchaser would need to reapply for construction and operating licenses. However, the previously approved COLs for the site should give the new owner a leg up in the process.
For that reason, V.C. Summer stands out as “the only site in the U.S. that could deliver 2,200 MW of nuclear capacity on an accelerated timeline.”
