S.C. Supreme Court overturns one SCE&G rate hike for nuclear project

[jpak]

http://www.charlestonbusiness.com/news/35429-s-c-supreme-court-overturns-one-sce-amp-g-rate-hike-for-nuclear-project?rss=0

The S.C. Supreme Court has overturned one of the rate hikes granted to SCE&G to pay for its two new nuclear reactors.

In a 3-2 ruling disclosed today, the court found that the utility should not have been granted $438 million in increases to cover contingency costs related to the $10 billion nuclear project that it shares with Santee Cooper. The S.C. Public Service Commission “abused its discretion” in awarding the costs to SCE&G, Justice Kaye G. Hearn wrote for the court.

A coalition of large power-using businesses, the S.C. Energy Users Committee, filed suit to block the increase. A majority of the court agreed with the users that the state’s Base Load Review Act, under which SCE&G is building the plants, does not allow for a rate increase to cover contingency costs that have not been spelled out.

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The ruling does not overturn all of SCE&G’s rate increases for the nuclear project. The PSC gave it permission to raise rates gradually by a total of 37% to pay for the reactors. SCE&G has estimated that its capital costs for the two reactors will be about $4.5 billion.

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[FBaggins]

1. "Despite high court ruling, SCE&G nuclear reactors to proceed fairly smoothly"

http://charleston.thedigitel.com/politics/despite-high-court-ruling-sceg-nuclear-reactors-pr-23018-0810

[Kolesar]

2. And I thought that First Energy was the most mismanaged generating utility! eom