MoU marks next step in potential VC Summer sale

Santee Cooper announced in October that it was in negotiations with Brookfield Asset Management about the potential completion of the units, triggering a six-week week initial project feasibility period. The memorandum of understanding (MoU) that has now been approved establishes a formal feasibility period regarding completing those units, the company said.

The deal terms include USD2.7 billion in cash to Santee Cooper should the parties reach a Final Investment Decision (FID) and commit to constructing the units, plus a targeted 25% ownership share for Santee Cooper, with proportional capacity, once the units begin commercial operation. The ownership benefits could be adjusted depending on the final cost of completing the units.

The agreement also establishes a path to FID, which is estimated to take 18-24 months. Under the MoU, Brookfield must, by 26 June 2026, determine initial feasibility, establish a target date for its FID, and develop a draft economic development plan that "considers a commitment" to using South Carolina companies and workforce, partnerships with the educational sector, investment in workforce development including providing opportunities to veterans, and engagement with communities and stakeholders. Santee Cooper will work with Brookfield on actions needed to evaluate feasibility, as well as actions related to detailed construction planning and analysis, needed to reach FID.

"Santee Cooper has negotiated a strong deal for our customers, including a cash payment that will significantly reduce the debt our customers have been paying, and future electric capacity they will receive from these units at no additional capital cost," Santee Cooper President and CEO Jimmy Staton said. "In addition to enabling completion of units that will generate over 2,000 megawatts in reliable, carbon-free electricity here, this deal also puts South Carolina at the front of the nation’s nuclear resurgence," he added.

Construction of the two units at VC Summer began in 2013. However, the owners of the Summer project - Scana subsidiary South Carolina Electric & Gas Company (SCE&G) and Santee Cooper - decided in August 2017 to abandon construction of the units following reactor vendor Westinghouse's filing for bankruptcy in March that year. Majority owner SCE&G (now Dominion Energy South Carolina) transferred its interest in the assets to Santee Cooper in 2018.

Earlier this year, Santee Cooper launched a competitive bidding process for the potential sale of the VC Summer assets to a third party who would complete the unfinished nuclear units.