South Carolina Electric & Gas Company (SCE&G), one of
the principal subsidiaries of the U.S. power company
), completed the nuclear island basemat for V.C. Summer Unit 2 in
South Carolina. This marks the first ever nuclear concrete
placement in the U.S. in three decades.
BROOKFIELD INFR (BIP): Free Stock Analysis
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SCANA CORP (SCG): Free Stock Analysis Report
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Construction of two 1,117-megawatt (MW) nuclear electric
generation units at the site of V.C. Summer Nuclear Station
(Summer Station) is expected to generate 600 to 800 permanent
jobs. The first unit is expected to be commissioned in 2017 and
the second in 2018. Partners involved in this new nuclear energy
project are SCE&G, a South Carolina, state-owned power
company Santee Cooper, CB&I, Westinghouse Electric Co. and
The concrete basemat provides groundwork for the containment and
auxiliary buildings inside the nuclear island. The six feet (1.8
meters) thick basemat required about 7,000 cubic yards of
concrete to cover an area about 250 feet long and 160 feet at its
widest section. The company has been able to complete a surface
totaling 32,000 square feet with 51.5 hours of nonstop concrete
Currently about 1,550 workers are engaged in the construction of
the two Summer reactors, where the 966-MW Unit 1 has operated for
30 years. The employment will eventually rise to about 3,000
workers within three to four years. SCANA and its partner Santee
Cooper expect to expend more than $9 billion to fabricate these
two Westinghouse AP1000 reactors at V.C. Summer.
The new units are a strategic fit in the rapidly growing state of
South Carolina. The nuclear units are expected to drive earnings
growth at SCE&G. SCANA's capex is bound to escalate with the
construction of the two nuclear projects but once the costs are
recognized in the rate base, the earnings power of the company is
surely to improve.
SCANA retains a Zacks Rank #2 (short-term Buy rating). There are
other utility companies that may well be considered. These are
Brookfield Infrastructure Partners L.P
Huaneng Power International, Inc.
Otter Tail Corporation
), all with a Zacks Rank #1 (Strong Buy).