In 2013, SCANA started the construction of V.C. Summer nuclear unit 2 and unit 3. The construction project valued at $10 billion is one of the largest and most expensive in the history of South Carolina.
SCANA concealed that the nuclear power plant expansion project was experiencing problems
SCANA touted the progress of the nuclear power plant expansion project in its periodic filings with the SEC, press releases, earnings calls with Wall Street analysts, video presentations, and during its testimony with the South Carolina Public Service Commission (PSC) between 2015 and 2017.
SCANA’s false statements regarding the progress of the construction of V.C. Summer’s two new nuclear units allowed it to boost its stock price and sell $1 billion in corporate bonds at favorable rates. The energy company’s lies also enabled it to obtain regulatory approval to charge its customers more than $1 billion in increased rates to help finance the project.
In reality, the company’s nuclear power plant expansion project was plagued with substantial delays and cost overruns. It was impossible to complete the project by January 1, 2021, the deadline for receiving the $1.4 billion federal production tax credits. Its executives knew that the project is not feasible without the tax credits.
