SCANA Corporation (with Santee Cooper)
V.C. Summer Nuclear Expansion Abandonment
Estimated impact: ~$9B spent with zero completed reactors; SCANA sold under distress; CEO criminal fraud conviction; ratepayers charged for a plant that never ran
SCANA and state-owned Santee Cooper committed to building two AP1000 reactors at the V.C. Summer site in South Carolina under a fixed schedule that assumed a first-of-a-kind reactor design could be built like a routine project. Schedule failures accumulated from the start; an independent Bechtel assessment documenting that the project could not meet its milestones was withheld from regulators while executives continued public assurances. When contractor Westinghouse went bankrupt in March 2017, the owners abandoned the project that July with roughly $9 billion spent and zero megawatts delivered. Ratepayers had been charged in advance under the state Base Load Review Act; SCANA’s CEO later pled guilty to federal fraud charges for concealing the schedule failures, and SCANA was absorbed by Dominion Energy.
Decision context
Whether to commit two regulated utilities to a multi-billion-dollar, first-of-a-kind nuclear construction program on a fixed schedule and budget, with cost recovery charged to ratepayers in advance, before the reactor design was construction-complete and before the contractor’s ability to deliver had been independently validated.
Decision anatomy
Red = risk factor present · Green = protective factor present
Biases present in the decision
★ Primary driver · Severity estimated from bias type and decision outcome
Toxic combinations
Reference class base rates
Across all 146 curated case studies in our library:
Lessons learned
- A first-of-a-kind nuclear build scheduled against the base rate of ROUTINE construction is the planning fallacy at its most expensive — every comparable AP1000 project was already running years late when the schedule was reaffirmed.
- Advance cost recovery (ratepayers billed before delivery) removed the natural financial circuit-breaker: the project could absorb overruns without triggering a stop decision, so sunk cost compounded for nine years.
- The Bechtel assessment was the disconfirming evidence the structure had no channel for — an independent report documenting unreachable milestones was buried rather than escalated, converting a recoverable schedule problem into securities fraud.
Source: U.S. v. Kevin Marsh, D.S.C. plea agreement (2020); SEC v. SCANA Corp. complaint (2020); Bechtel Corporation project assessment (2016, released 2017); South Carolina Public Service Commission dockets on the Base Load Review Act surcharges (SEC Filing)
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Workflows that fire on decisions like SCANA Corporation (with Santee Cooper)’s
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