South Carolina Electric & Gas / Westinghouse
V.C. Summer Nuclear Expansion Abandonment
Estimated impact: $9B in sunk costs; $2B charged to ratepayers for zero output
South Carolina abandoned construction of two AP1000 nuclear reactors at V.C. Summer after spending $9B. Westinghouse (the reactor builder) went bankrupt. Ratepayers were charged $2B for reactors that will never generate electricity. Internal documents showed executives knew the project was failing years before public disclosure.
Decision context
Whether to continue nuclear construction when internal cost estimates showed the project was billions over budget and years behind schedule, or disclose the true status to regulators and ratepayers.
Biases present in the decision
Toxic combinations
- Sunk Ship
- Blind Sprint
- Deadline Panic
Reference class base rates
Across all 146 curated case studies in our library:
Lessons learned
- Sunk cost fallacy: $9B already spent made abandonment seem more wasteful than continued spending, even when completion was economically impossible
- Planning fallacy in nuclear construction is extreme — no AP1000 reactor has been built on time or on budget globally
- Framing progress in terms of percentage complete rather than remaining cost disguised the accelerating overruns
Source: South Carolina House Legislative Oversight Committee investigation (2018); Westinghouse bankruptcy filing (2017) (Case Study)
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