An article in The Post and Courier stated the rate hikes that SCE&G wants are to pay for the additional costs for the new reactors at the V.C. Summer Nuclear Station. It appears that the state’s Base Load Review Act lets SCE&G charge “its customers for construction as the nuclear project proceeds.”
SCE&G wants an additional $852 million to pay for overruns and delays. I would think that the contracts to build the nuclear station would have to include a time frame for when project phases would have to be met and a quote for the expenses of the contractor. It possibly could include a time frame for completion of the project also. If such items in the contracts are not met, a fine should be imposed on the contractors.
Instead, SCE&G just puts in a request to increase our rates because it has allowed the cost of the project to jump to $4 billion.
An additional rate increase would be the ninth rate increase for this one project.
If the construction can’t be held to the original cost, it would seem the wrong people are handling the contracts — or they just don’t care, since they just pass any additional costs to us.
We have already paid an additional $1.1 billion in our bills for this project and now they want more. If this rate increase goes into effect, there will just be another in six months.
Maybe if the new rate increase is not granted, SCE&G will look a little more carefully at what is causing such expensive cost overruns.