FBI probes abandoned nuclear site

Regulators: SCE&G refuses to cooperate

Jerry Bellune
Posted 5/24/18

Federal agents are checking SC Electric & Gas’s abandoned nuclear site.

According to state regulators, the SCE&G Abandonment Manager reported that US Department of Justice officials …

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FBI probes abandoned nuclear site

Regulators: SCE&G refuses to cooperate

Posted

Federal agents are checking SC Electric & Gas’s abandoned nuclear site.

According to state regulators, the SCE&G Abandonment Manager reported that US Department of Justice officials planned to visit the VC Summer nuclear reactor site this week.

They expect up to 19 FBI agents will assist Justice Department personnel.

Ron Aiken of the Office of Regulatory Staff confirmed the plan but said he had no further information.

It has been reported that federal officials and a grand jury are investigating how and why SCE&G and its partner, Santee Cooper, abandoned the $9 billion nuclear construction project 10 months ago.

The FBI does not comment on investigations or what they are looking for.

That they are investigating the site suggests they are looking for evidence of criminal wrongdoing

Whether this will lead to criminal indictments is not yet known. But SCE&G officials and their parent corporation, Lexington County-based SCANA, already face numerous civil lawsuits.

SCE&G is still charging its 700,000 ratepayers $34 million a month as if construction was continuing.

SCE&G spokesman Eric Boomhower said his company is cooperating fully with regulators at the Office of Regulatory Staff about the ongoing investigations.

“We have been in regular contact with the agencies involved, and have voluntarily provided them with access to the nuclear construction site.

“The ORS asked SCE&G to keep them informed of events on the site, and SCE&G made them aware of the scheduled visit.”

Yet The State newspaper reported the ORS said SCE&G has refused to turn over records given to the FBI and other agencies investigating possible fraud.

SCE&G said it won’t release documents affecting attorney-client privilege.

These documents, according to The State, include the highly-critical Bechtel analysis that SCE&G and Westinghouse Electric were badly mismanaging the $9 billion nuclear project.

SC Electric &Gas says it gave up requested nuclear failure information.

State Office of Regulatory Staff attorney Jenny Pittman says this isn’t true.

The giant Lexington County-based power company has refused to give up records ORS says it could use to justify rolling back $34 million in monthly power bills.

This is what ratepayers are still paying for its abandoned $9 billion nuclear project.

Regulators say they need the records to understand how the project failed.

The information being withheld includes:

• Auditors’ reports.

• A 2016 estimate of the cost to finish the project.

• Records the FBI and other law enforcement agencies are checking for possible criminal fraud in what retired CEO Kevin Marsh and other company executives told the Public Service Commission about the project in requesting nine annual rate hikes.

• Details on the critical Bechtel report, a suppressed study that outlined massive problems with the project two years before SCE&G reluctantly revealed them.

The ORS attorney Jenny Pittman wrote in a May 9 letter that “many responses do not appear to comply in good faith’’ with laws requiring SCE&G to give up its records, The State newspaper reported.

ORS wants the records in trying to roll back a $27 monthly rate hike SCE&G continues to charge its 700,000 ratepayers for the mismanaged nuclear plant.

The Public Service Commission could order the records released prior to its scheduled hearings later this year on that and Dominion Energy’s proposed buyout of SCE&G’s Lexington County-based parent, SCANA Corporation.

SCE&G officials say they won’t give up some records including those about the long-secret Bechtel report.

They contend these are protected by confidential attorney-client privilege laws.

ORS’s attorney says that does not apply to the controversial Bechtel report.

Attorneys for Friends of the Earth and the Sierra Club in rate rollback cases before the PSC say they also have been rebuffed in their requests for records.

Bob Guild, a lawyer for the two environmental groups, said this isn’t surprising as SCE&G doesn’t want anyone to see potentially damning information.

In a letter to ORS, SCE&G said it might release some information of regulators sign an agreement to withhold it from the public.

ORS officials say they have not decided if they will agree to those terms.

“Ultimately, they’ll have to cough this stuff up,” Guild said. “They know they can play this waiting game.’’

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