Nuclear

Shaw wins EPC for SCEG nuclear plants

27 May 2008 — The Shaw Group Inc. said that Westinghouse Electric Co. won an engineering, procurement and construction (EPC) contract for two AP1000 nuclear power units by South Carolina Electric & Gas Company (SCE&G).

The two 1,117-MW units are scheduled to be located at the V.C. Summer Nuclear Station in South Carolina. Known as V.C. Summer 2 and 3, the new units are scheduled for completion in 2016 and 2019, respectively, pending federal and state regulatory approval prior to construction.

Currently, SCE&G and South Carolina Public Service Authority (Santee Cooper) are joint owners and share operating costs and generating output of the existing 966 MW V.C. Summer plant, which began commercial operation in 1984. SCE&G is the plant operator. A similar arrangement will apply to the two additional units, with SCE&G accounting for 55 percent of the cost and output and Santee Cooper the remaining 45 percent. SCE&G executed the engineering, procurement and construction (EPC) contract on behalf of both companies.

The value of the contract is undisclosed. The cost for both units is said to be based on the contract price plus forecasted inflation, owner’s costs (site preparation, etc.) and contingencies. Upon completion the cost is estimated to be approximately $9.8 billion. SCE&G, a unit of SCANA Corporation, is expected to take on about $5.4 billion of that total and Santee Cooper, a state-owned electric and water utility in South Carolina, will reportedly assume about $4.4 billion.

SCE&G expects to file a combined application for a certificate of environmental compatibility, public convenience and necessity, and for a base load review order with the South Carolina Public Service Commission (PSC) and the South Carolina Office of Regulatory Staff (ORS). A combined construction and operating license (COL) application for the two units was submitted to the U.S. NRC on March 31. Approval of the COL is expected in 2011. Construction of the nuclear island for the first unit would begin soon after.

The EPC contract for V.C. Summer Units 2 and 3 is the second EPC contract for new nuclear power generation awarded to Shaw and Westinghouse, the nuclear division of Shaw’s power group and its consortium partner, in the past two months.