SCANA Corp., already beneath federal and state scrutiny for the way it dealt with the now-abandoned V.C. Summer nuclear growth, has been served with a doc subpoena by the U.S. Securities and Exchange Commission (SEC).
SCANA stated in a information launch that it intends to completely cooperate with the investigation of the nuclear challenge. The growth follows a drastic drop within the firm’s share worth in late September.
SCANA and challenge accomplice Santee Cooper in mid-September obtained federal subpoenas for paperwork related to a much-guarded February 2016 evaluation report performed by Bechtel, documentation of conferences with the development and civil engineering agency, and documentation of website walkdowns and real-time observations on the half-built challenge.
South Carolina lawmakers on September 26 urged state regulation enforcement to conduct a legal investigation into how the challenge was dealt with. The measure got here after a number of legislative committee hearings, many targeted on the Bechtel audit. At one level, state lawmakers threatened to subpoena if the utilities didn’t launch it.
Bechtel—an organization that can take over building on the Vogtle AP1000 nuclear growth in Georgia—accomplished the evaluation three months earlier than SCANA requested regulators to extend its share of the challenge price and approve a fixed-price contract with Westinghouse, which ultimately filed for chapter safety in March 2017.
The two-unit challenge to construct first-of-their-kind AP1000 reactors was about 64% full in May, however it had been in limbo after Westinghouse’s chapter submitting.
The utility companions ultimately introduced their choice to desert the challenge on July 31. The key cause for SCANA’s choice was that the challenge could be “prohibitively costly.” For Santee Cooper, the choice was based mostly “largely on a complete evaluation of detailed schedule and value knowledge, from each challenge contractor Westinghouse Electric Co. and subcontractor Fluor Corp., first revealed after Westinghouse filed for chapter in March.”
SCANA is in the meantime additionally fielding a number of class-action fits alleging that its subsidiary South Carolina Electric & Gas (SCE&G) overcharged its prospects by elevating charges to pay upfront for the development of the challenge.
In late September, regulation agency Motley Rice filed a class-action go well with on behalf of SCANA shareholders alleging that the corporate made “false and deceptive statements and/or did not disclose hostile info relating to the development of the Nuclear Project, assuring buyers that prices spending [of an estimated $9 million] was prudent and substantial progress was being made, even when price overruns and different delays started to materialize.”
The go well with claims that because of these alleged false statements and omissions, “SCANA’s widespread inventory traded at artificially inflated costs throughout the Class Period,” which spanned between January 19, 2016, and September 22, 2017.
—Sonal Patel is a POWER affiliate editor (@sonalcpatel, @POWERmagazine)
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