SCG - SCANA

[ValueMaven]

Has anyone looked at this?  It's a interesting special situation...very complex, but it looks like the state of south carolina is trying to force public losses on a $2bn nuke power-planet that SCG analyzed and walked away from ON TO the public shareholders of SCG.  It's a very interesting utility, with a nice yield.  down 50% from its peak. 

[JRM]

Add on to that a lawsuit where shareholders are suing SCANA management for awarding themselves millions in bonuses while knowing that construction was behind schedule and over budget.  I don't know how these things usually play out, but hopefully shareholders can claw back these bonuses.  This is negligible, though, for a multi-billion dollar company.

 

I worked at a nuclear power plant for 9 years as an engineer, so this will be an interesting story to watch play out.  Like you said, this is complicated.  However, not unprecedented.

 

These situations were common following the Three Mile Island incident in the 1970's.  It would be worth researching uncompleted plants from this period and its effect on the investors/utility as well as situations with a similar rate-relief structure in a regulated environments.  Duke comes to mind. 

 

I don't know what claim they think they have against SCANA.  Rate relief was approved by the state on behalf of the rate payers. The risks were known (if not fully understood) upfront.  Then the rate payers protest and want construction stopped.  Then they sue to get their rates refunded.  They shouldn't be allowed to have it both ways.

[rb]

Yea, I'm interested in this one too. But it has the whole nuke mess and I've been kinda busy and didn't have time to untangle all of that.