Title : South Carolina Nuclear Reactors -- Update -- August 25, 2018; The Question: This Story Should Concern ... Exactly ... Whom?
link : South Carolina Nuclear Reactors -- Update -- August 25, 2018; The Question: This Story Should Concern ... Exactly ... Whom?
South Carolina Nuclear Reactors -- Update -- August 25, 2018; The Question: This Story Should Concern ... Exactly ... Whom?
Link to WSJ here.The primary owner of a power plant with two partially built nuclear reactors in South Carolina walked away from the $9 billion project last summer because of high construction costs and delays. Now no one wants to pay for it.
The utility overseeing the Virgil C. Summer plant is asking ratepayers across the Palmetto State to shoulder its construction expenses of $4.7 billion, citing a law passed last decade. But local lawmakers are trying to force South Carolina Electric & Gas Co. to pick up more of the tab.
A federal judge handed lawmakers an initial victory earlier this month, ruling that a temporary state-imposed rate cut for customers could stand. The utility, known by its acronym SCE&G, is appealing the decision.
This dust-up is part of a larger U.S. dispute over how much public support should be provided to support nuclear power at a time when the industry is struggling to compete with lower-cost natural gas and renewable energy.
The South Carolina plant and a similar project in Georgia both encountered massive cost overruns that led to the bankruptcy of nuclear project builder Westinghouse Electric Co. The company that owns the Georgia plant, which like the South Carolina project also received state support, said earlier this month that it would take an earnings charge to cover more than $1 billion in new cost overruns.
Okay, I'm getting way ahead of my headlights here, but this should be entertaining.Disclaimer: this is not an investment site. Comments, facts, opinions follow.
After the federal judge's ruling, SCE&G could take a financial hit.
What do SCE&G investors think?
SCANA (SCG) is the holding company for SCE&G.
SCG was up about 4% yesterday. What gives?
Back on January 3, 2018, Dominion announced it would buy SCE&G in an all-stock offer.
D also rose yesterday in trading, up less than 1%. D is "down" for the YTD and the past six months, but seems to be in a trading range, now.
Dominion's market cap: $50 billion.
The nuclear reactor tab: $5 billion.
After going through this, the bottom line(s) for me:
- the WSJ nuclear reactor story is a non-story for investors;
- it appears the parties involved will let this play out in court and investors appear unconcerned
- South Carolina ratepayers are going to get up to $1,000 in cash from Dominion when the deal closes
- what's not to like?
Thus Article South Carolina Nuclear Reactors -- Update -- August 25, 2018; The Question: This Story Should Concern ... Exactly ... Whom?
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