DOCKETING INFORMATION H

)

) )

BEFORE THE

Petition of South Carolina Electric & Gas Company for ) PUBLIC SERVICE COMMISSION

OF SOUTH CAROLINA Updates and Revisions to Schedules Related to the ) Construction of a Nuclear Base Load Gene.-ation Facility ) at Jenkinsville, South Carolina )

COVER SHEET

(Please type or print)

) )

) ) )

DOCKET

NUMBER: 2016- E

Submitted by: K. Chad Burgess SC Bar Number: 69456 -----------------------------Address: _S_C_A_N_A_C_o_r__..p_. _ _______ _

220 Operation Way MC C222

Telephone:

Fax:

803-217-8141

803-217-7810

Cayce, SC 29033 Other: Email: chad. [email protected]

NOTE: The cover sheet and information contained herein neither replaces nor supplements the filing and service of pleadings or other papers

as required by law. This form is required for use by the Public Service Commission of South Carolina for the purpose of docketing and must

be filled out completely.

DOCKETING INFORMATION (Check all that apply)

D Emergency Relief demanded in petition 0 Request for item to be placed on Commission's Agenda expeditiously D Other:

-----------------------------------------------------------------------------------

1 INDUSTRY (Check one)

~ Electric

0 Electric/Gas

D Electric/Telecommunications

D Electric/Water

D Electric/Water/Telecom.

D Electric/Water/Sewer

D Gas

D Railroad

D Sewer

D Telecommunications

D Transpmtation

D Water

D Water/Sewer

D Administrative Matter

D Other:

NATURE OF ACTION (Check all that apply)

D Affidavit

D Agreement

D Answer

D Appellate Review

D Application

0 Letter

D Memorandum

0 Motion

D Objection

~Petition

D Request

D Request for Ce1tification

D Request for Investigation

D Resale Agreement

D Resale Amendment

D Brief 0 Petition for Reconsideration D Reservation Letter

D Ce1tificate

D Comments

D Complaint

D Consent Order

D Discovery

D Exhibit

0 Petition for Rulemaking

D Petition for Rule to Show

Cause

0 Petition to Intervene

D Petition to Intervene Out of

Time

D Prefiled Testimony

D Promotion

0 Expedited Consideration D Proposed Order

D Interconnection Agreement D Protest

D Interconnection Amendment D Publisher's Affidavit

D Late-Filed Exhibit D Report

D Response

D Response to Discovery

D Return to Petition

D Stipulation

D Subpoena

STATE OF SOUTH CAROLINA

Petition of South Carolina Electric & Gas Company forUpdates and Revisions to Schedules Related to theConstruction of a Nuclear Base Load Generation Facilityat Jenlcinsville, South Carolina

)

) BEFORE THE) PUBLIC SERVICE COMMISSION) OF SOUTH CAROLINA)

) COVER SHEET)

)

) DOCKET

) NUMBER: 2016 - - E))

(Please type or print)Submitted by: K. Chad Bur ess

Address: SCANA Cor .

220 0 eration Wa MC C222

Ca ce, SC 29033

SC Bar Number: 69456

Telephone: 803-217-8141

Fax: 803-217-7810

Other:Email: chad.bur ess scana.corn

NOTE: The cover sheet and information contained herein neither replaces nor supplements the filing and service of pleadings or other papers

as required by law. This form is required for use by the Public Service Commission of South Carolina for the purpose of docketing and must

be filled out completely.

DOCKETING INFORMATION (Checlc all that apply)

Emergency Relief demanded in petition Request for item to be placed on Commission's Agenda expeditiouslyOther:

NATURE OF ACTION (Check all that apply)

El Electric

Electric/Gas

Affidavit

Agreement

Letter

Memorandum

Request

Request for Certification

Electric/Telecommunications

Electric/Water

Electric/Water/Telecom.

Electric/Water/Sewer

Gas

Railroad

Sewer

Telecommunications

Answer

Appellate Review

Application

Brief

Certificate

Comments

Complaint

Consent Order

Motion

Objection

H Petition

Request for Investigation

Resale Agreement

Resale Amendment

Petition for Rulemaking

Petition for Rule to Shoiv

Cause

Petition to Intervene

Petition to Intervene Out of

Time

Response

Response to Discovery

Return to Petition

Stipulation

Petition for Reconsideration Reservation Letter

Transportation

Water

Water/Sewer

Administrative Matter

Other:

Discovery

Exhibit

Expedited Consideration

Interconnection Agreement

Interconnection Amendment

Late-Filed Exhibit

Prefiled Testimony

Promotion

Proposed Order

Protest

Publisher's Affidavit

Report

Subpoena

F I L I N G

The Honorable Jocelyn G. Boyd Chief Clerk/ Administrator

May 26,2016

Public Service Commission of South Carolina 101 Executive Center Drive Columbia, South Carolina 29210

K. Chad Burgess Director & Deputy General Counsel

[email protected]

RE: Petition of South Carolina Electric & Gas Company for Updates and Revisions to Schedules Related to the Construction of a Nuclear Base Load Generation Facility at Jenkinsville, South Carolina Docket No. 2016- -E

Dear Ms. Boyd:

Enclosed for filing pursuant to S.C. Code Ann § 58-33-270(E) (2015) is South Carolina Electric & Gas Company's ("SCE&G") Petition for Updates and Revisions to Schedules Related to the Construction of a Nuclear Base Load Generation Facility at Jenkinsville, South Carolina ("Petition").

Also enclosed for filing and consideration by the Public Service Commission of South Carolina is a draft Notice of Filing and Hearing and Prefile Testimony Deadlines ("Notice"). SCE&G is proposing a hearing date of October 4, 2016, which takes into account the statutory deadline for an order in this matter.

By copy of this letter, we are providing the South Carolina Office of Regulatory Staff with a copy of the Petition and the draft Notice and include a certificate of service to that effect.

If you have any questions, please do not hesitate to contact us.

KCB/krns Enclosures

Very truly yours,

I(CI~~ K. Chad Burgess

cc: C. Dukes Scott M. Anthony James Nanette S. Edwards Jeffrey M. Nelson, Esquire Dawn Hipp Shannon Bowyer Hudson, Esquire

(all via electronic mail and U.S. First Class Mail w/enclosures)

SCPOWER FOR LIVING

K. Chad BurgessDirector gr Deputy General Counsel

chad.bur ess scene,corn

May 26, 2016

VIA ELECTRONIC FILING

The Honorable Jocelyn G. BoydChief Clerk/AdministratorPublic Service Commission of South Carolina101 Executive Center DriveColumbia, South Carolina 29210

RE; Petition of South Carolina Electric & Gas Company for Updates and Revisions toSchedules Related to the Construction of a Nuclear Base Load Generation Facilityat Jenlunsville, South CarolinaDocket No. 2016- -E

Dear Ms. Boyd:

Enclosed for filing pursuant to S.C. Code Ann It 58-33-270(E) (2015) is South CarolinaElectric & Gas Company's ("SCE&G") Petition for Updates and Revisions to Schedules Relatedto the Construction of a Nuclear Base Load Generation Facility at Jenkinsville, South Carolina("Petition").

Also enclosed for filing and consideration by the Public Service Commission of SouthCarolina is a draft Notice of Filing and Hearing and Prefile Testimony Deadlines ("Notice").SCE&G is proposing a hearing date of October 4, 2016, which takes into account the statutorydeadline for an order in this matter.

By copy of this letter, we are providing the South Carolina Office of Regulatory Staff witha copy of the Petition and the draft Notice and include a certificate of service to that effect.

If you have any questions, please do not hesitate to contact us.

Very truly yours,

K. Chad Burgess

KCB/kmsEnclosures

cc: C. Dukes Scott M. Anthony JamesNanette S. Edwards Jeffrey M. Nelson, EsquireDawn Hipp Shannon Bowyer Hudson, Esquire

(all via electronic mail and U.S. First Class Mail w/enclosures)

SERVICE COMMISSION OF SOUTH CAROLINA

CLERK'S OFFICE

NOTICE OF FILING AND H E A R I N G AND P R E F I L E T E S T I M O N Y D E A D L I N E S

D O C K E T NO. 2 0 1 6 - - E

P E T I T I O N O F S O U T H C A R O L I N A E L E C T R I C & G A S C O M P A N Y F O R U P D A T E S AND R E V I S I O N S

T O S C H E D U L E S R E L A T E D T O T H E C O N S T R U C T I O N O F A N U C L E A R B A S E L O A D G E N E R A T I O N

F A C I L I T Y A T J E N K I N S V I L L E , S O U T H C A R O L I N A

In O r d e r No. 2 0 0 9 - 1 0 4 ( A ) , d a t e d M a r c h 2 , 2 0 0 9 , the P u b l i c S e r v i c e C o m m i s s i o n o f S o u t h C a r o l i n a ( " C o m m i s s i o n " )

a u t h o r i z e d S o u t h C a r o l i n a E l e c t r i c & G a s C o m p a n y ( " S C E & G " o r " C o m p a n y " ) to c o n s t r u c t a n d o p e r a t e t w o 1, 117

n e t m e g a w a t t n u c l e a r f a c i l i t i e s ( " U n i t s " ) to be l o c a t e d at t h e V i r g i l C . S u m m e r N u c l e a r S t a t i o n s i t e n e a r

J e n k i n s v i l l e , S o u t h C a r o l i n a . In a c c o r d a n c e with the B a s e L o a d R e v i e w A c t , S . C . C o d e A n n . § 5 8 - 3 3 - 2 1 0 et seq., in Order No. 2009-1 04(A), the Commission approved an estimated capital cost for the Units of $4.5 billion in 2007 dollars and $6.3 billion with escalation. In Order No. 2010-12, in Docket No. 2009-293-E, the Commission approved SCE&G's request to, among other things, approve an updated schedule of capital costs for the project. The updated capital cost schedule did not alter the total estimated capital cost for the Units of $4.5 billion in 2007 dollars but changed the forecasted timing of cash flows.

In Order No. 2011-345, the Commission approved an updated capital cost schedule for the Units which also removed all projected contingency costs as required by the decision of the South Carolina Supreme Court in South Carolina Energy Users Comm. v. South Carolina Pub. Serv. Comm'n, 388 S.C. 486, 697 S.E.2d 587 (2010). In Order No. 2012-884, the Commission approved an estimated capital cost for the Units of $4.5 billion in 2007 dollars and a new milestone schedule reflecting substantial completion dates for Units 2 and 3 of March 15,2017, and May 15, 2018, respectively. The South Carolina Supreme Court affirmed the Commission's ruling in all respects. South Carolina Energy Users Comm. v. South Carolina Elec. & Gas, 410 S.C. 348, 764 S.E.2d 913 (2014).

In Order No. 2015-661 , the Commission approved an updated construction schedule with new substantial completion dates for Units 2 and 3 of June 19, 2019, and June 16, 2020, respectively and an updated capital cost estimate of $5.2 billion in 2007 dollars. No appeal was taken from Order No. 2015-661 .

In October 2015, SCE&G signed an Amendment to the Engineering, Procurement and Construction Agreement for the project (the "Amendment") which resh·uctured the project construction team, revised key terms of the construction contract, established new liquidated damages and completion incentives for the contractor, resolved outstanding claims between the pmties, granted SCE&G a fixed price option for the remaining work required under the construction contract and extended the substantial completion dates for each unit by approximately two months.

On May 26, 2016, SCE&G filed a Petition with the Commission, pursuant to S.C. Code Ann. § 58-33-270(E), seeking an order approving an updated construction schedule and capital cost schedule for the Units. The updated construction schedule reflects new guaranteed substantial completion dates for Units 2 and 3 of August 31 , 2019, and August 31, 2020, respectively. The new capital cost schedules reflect additional costs associated with the Amendment and with certain change orders outside the Amendments. It also reflects additional Owner's costs principally associated with the Amendment and the change in the guaranteed substantial completion dates, and additional costs to upgrade ce1tain project-related transmission equipment. In total, the capital cost schedule reflects approximately $807 million in additional cost that have been identified since the issuance of Order No. 2015-661 . The elements of the cost are set fmth in more detail in the Petition.

The capital cost estimate for which the Company seeks Commission approval in this proceeding is $6.8 billion in 2007 dollars and $7.7 billion with escalation. In its filing, the Company states that it may seek to update its capital cost estimates during the pendency of these proceedings if additional cost items are identified or if cash flow schedules are updated.

S.C. Code Ann. § 58-33-270(E) authorizes SCE&G to petition the Commission for modification of any of the schedules related to the construction of a base load generation facility . This statute provides that such requests shall be granted if, after a hearing, the Commission finds that the changes are not the result of imprudence on the pmt of SCE&G. In the Petition, the Company states "SCE&G's actions associated with the Amendment and all changes in

Public Service Commission of South Cai'Oiina • Attention: Clerk's Office • Post Office Drawer 11649 • Columbia, SC 29211

PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA

CLERK'S OFFICE

NOTICE OF FILING AND HEARING AND PREFILE TESTIMONY DEADLINES

DOCKET NO. 2016- -E

PETITION OF SOUTH CAROLINA ELECTRIC & GAS COMPANY FOR UPDATES AND REVISIONSTO SCHEDULES RELATED TO THE CONSTRUCTION OF A NUCLEAR BASE LOAD GENERATIONFACILITY AT JENKINSVILLE, SOUTH CAROLINA

In Order No. 2009-104(A), dated March 2, 2009, the Public Service Commission of South Carolina ("Commissionw)authorized South Carolina Electric & Gas Company (eSCE&Gw or "Company") to construct and operate two 1,117net megawatt nuclear facilities (eUnitsw) to be located at the Virgil C. Summer Nuclear Station site nearJenkinsville, South Carolina. In accordance with the Base Load Review Act, S.C. Code Ann. I) 58-33-210 el seqw inOrder No. 2009-104(A), the Commission approved an estimated capital cost for the Units of $4.5 billion in 2007dollars and $6.3 billion with escalation. In Order No. 2010-12, in Docket No. 2009-293-E, the Commissionapproved SCE&G's request to, among other things, approve an updated schedule of capital costs for the project.The updated capital cost schedule did not alter the total estimated capital cost for the Units of $4.5 billion in 2007dollars but changed the forecasted timing of cash flows.

In Order No. 2011-345, the Commission approved an updated capital cost schedule for the Units which alsoremoved all projected contingency costs as required by the decision of the South Carolina Supreme Court in SouthCarolina Ener Users Comm. v. South Carolina Pub. Serv. Comm'n, 388 S.C. 486, 697 S.E.2d 587 (2010). InOrder No. 2012-884, the Commission approved an estimated capital cost for the Units of $4.5 billion in 2007 dollarsand a new milestone schedule reflecting substantial completion dates for Units 2 and 3 of March 15, 2017, and May15, 2018, respectively. The South Carolina Supreme Coutx affirmed the Commission's mling in all respects. SouthCarolina Ener Users Comm. v. South Carolina Elec. & Gas, 410 S.C. 348, 764 S.E.2d 913 (2014).

In Order No. 2015-661, the Commission approved an updated construction schedule with new substantialcompletion dates for Units 2 and 3 of June 19, 2019, and June 16, 2020, respectively and an updated capital costestimate of $5.2 billion in 2007 dollars. No appeal was taken from Order No. 2015-661.

In October 2015, SCE&G signed an Amendment to the Engineering, Procurement and Construction Agreement forthe project (the "Amendment") which restructured the project construction team, revised key terms of theconstruction contract, established new liquidated damages and completion incentives for the contractor, resolvedoutstanding claims between the patties, granted SCE&G a fixed price option for the remaining work required underthe construction contract and extended the substantial completion dates for each unit by approximately two months.

On May 26, 2016, SCE&G filed a Petition with the Commission, pursuant to S.C. Code Ann. tj 58-33-270(E),seeking an order approving an updated construction schedule and capital cost schedule for the Units. The updatedconstruction schedule reflects new guaranteed substantial completion dates for Units 2 and 3 of August 31, 2019,and August 31, 2020, respectively. The new capital cost schedules reflect additional costs associated with theAmendment and with certain change orders outside the Amendments. It also reflects additional Owner's costsprincipally associated with the Amendment and the change in the guaranteed substantial completion dates, andadditional costs to upgrade certain project-related transmission equipment, In total, the capital cost schedule reflectsapproximately $807 million in additional cost that have been identified since the issuance of Order No. 2015-661.The elements of the cost are set forth in more detail in the Petition.

The capital cost estimate for which the Company seeks Commission approvai in this proceeding is $6.8 billion in

2007 dollars and $7.7 billion with escalation. In its filing, the Company states that it may seek to update its capitalcost estimates during the pendency of these proceedings if additional cost items are identified or if cash flowschedules are updated.

S.C. Code Ann. t) 58-33-270(E) authorizes SCE&G to petition the Commission for modification of any of theschedules related to the construction of a base load generation facility. This statute provides that such requests shallbe granted if, afler a hearing, the Commission finds that the changes are not the result of imprudence on the part ofSCE&G. In the Petition, the Company states eSCE&G's actions associated with the Amendment and all changes in

Public Service Comtuissiou of South Caroliua ~ Aneutioui Clerk's Office ~ Post Office Drawer 11G49 ~ Coliuuii, SC 29211

p r u d e n t . "

A c o p y o f t h e c o m p a n y ' s P e t i t i o n c a n be f o u n d on t h e C o m m i s s i o n ' s w e b s i t e a t w w w . p s c . s c . g o v u n d e r D o c k e t N o .

2 0 1 6 - _ _ -E. A d d i t i o n a l l y , a c o p y o f t h e P e t i t i o n is a v a i l a b l e from t h e o f f i c e o f S o u t h C a r o l i n a E l e c t r i c & G a s

C o m p a n y at 2 2 0 O p e r a t i o n Way , M a i l C o d e C 2 2 2 , C a y c e , S o u t h C a r o l i n a 2 9 0 3 3 .

P L E A S E T A K E N O T I C E t h a t a h e a r i n g , p u r s u a n t to 10 S.C. C o d e A n n . Regs. 1 0 3 - 8 1 7 a n d S.C. C o d e Ann. § 5 8 -

3 3 - 2 7 0 on t h e a b o v e m a t t e r h a s b e e n s c h e d u l e d to b e g i n on T u e s d a y , O c t o b e r 0 4 , 2 0 1 6 , a t 1 0 : 3 0 a . m . , a n d

c o n t i n u i n g t o O c t o b e r 5

1

h a n d O c t o b e r 6

1

\ a n d f u r t h e r c o n t i n u e d a f t e r t h e s e d a t e s , i f n e c e s s a r y , b e f o r e t h e

C o m m i s s i o n in t h e C o m m i s s i o n ' s H e a r i n g R o o m a t 101 E x e c u t i v e C e n t e r D r i v e , S a l u d a B u i l d i n g , C o l u m b i a , S o u t h

C a r o l i n a 2 9 2 1 0 for the p u r p o s e o f r e c e i v i n g t e s t i m o n y and e v i d e n c e from all i n t e r e s t e d p a r t i e s .

Any p e r s o n w h o w i s h e s t o p a r t i c i p a t e in this m a t t e r as a p a r t y o f r e c o r d s h o u l d f i l e a P e t i t i o n to I n t e r v e n e in

a c c o r d a n c e w i t h t h e C o m m i s s i o n ' s R u l e s o f P r a c t i c e and P r o c e d u r e on o r b e f o r e J u l y 15, 2 0 1 6 . F o r the r e c e i p t o f

future C o m m i s s i o n c o r r e s p o n d e n c e , p l e a s e i n c l u d e an e m a i l a d d r e s s in the P e t i t i o n t o I n t e r v e n e . Please refer to Docket No. 2016-__ -E am/mail a copy to all other parties in this docket. Any person who wishes to testify and present evidence at the hearing should notify, in writing, the Commission; the Office of Regulatory Staff at 1401 Main Street, Suite 900, Columbia, South Carolina 29201; K. Chad Burgess, Director and Deputy General Counsel, SCANA Corporation, 220 Operation Way, Mail Code C222, Cayce, South Carolina 29033 , on or before July 15, 2016. Please refer to Docket No. 2016-__ -E.

INSTRUCTIONS TO ALL PARTIES OF RECORD (Applicant, Petitioners, and Intervenors only): All Parties of Record must pre file testimony with the Commission and with all patties of record. Pre filed Testimony Deadlines: Applicant's Direct Testimony Due: ; Other Parties of Record Direct Testimony Due: _____ ; Applicant's Rebuttal Testimony Due: ; and Other Patties of Record Surrebuttal Testimony Due: . All Prefiled Testimony Deadlines are subject to the information as posted on www.psc.sc .gov under Docket No. 2016-__ -E.

For the most recent information regarding this docket, including changes in scheduled dates included in this Notice, please refer to www.psc.sc.gov and Docket No. 2016-__ -E.

PLEASE TAKE NOTICE that any person who wishes to have his or her comments considered as part of the official record of this proceeding MUST present such comments in person to the Commission during the hearing.

Persons seeking information about the Commission's procedures should contact the Commission at (803) 896-5100 or visit its website at www.psc.sc.gov.

5/26/ 16

Public Service Commission of South Carolina • Attention: Clerk's Office • Post Office Dt"awer 11649 • Cohnnhia, SC 29211

the construction schedule and forecast of capital costs reflected in Exhibit 1 and Exhibit 2 have been reasonable andprudent."

Apyfhpy'Pff hf 6 he ff 'm»~d et ~ .

2016- -E. Additionally, a copy of the Petition is available from the office of South Carolina Electric & GasCompany at 220 Operation Way, Mail Code C222, Cayce, South Carolina 29033.

PLEASE TAKE NOTICE that a hearing, pursuant to 10 S.C. Code Ann. Regs. 103-817 and S.C. Code Ann. tj58-33-270 on the above matter has been scheduled to begin on Tuesday, October 04, 2016, at 10:30 a.m., andcontinuing to October 5'" and October 6'", and further continued after these dates, if necessary, before theCommission in the Commission's Hearing Room at 101 Executive Center Drive, Saluda Building, Columbia, SouthCarolina 29210 for the purpose of receiving testimony and evidence from all interested parties.

Any person who wishes to participate in this matter as a party of record should file a Petition to Intervene inaccordance with the Commission's Rules of Practice and Procedure on or before July 15, 2016. For the receipt offuture Commission correspondence, please include an email address in the Petition to Intervene. Please refer foDoc/ref /Vo. 2016- -E nrrtl mnil o copy lo rill of/ref parries in /iris rloclref. Any person who wishes to testify andpresent evidence at the hearing should notify, in writing, the Commission; the Office of Regulatory Staff at 1401Main Street, Suite 900, Columbia, South Carolina 29201; K. Chad Burgess, Director and Deputy General Counsel,SCANA Corporation, 220 Operation Way, Mail Code C222, Cayce, South Carolina 29033, on or before July IS,2016. Plense refer fo Doc/ref /6/o. 2016- -E.

INSTRUCTIONS TO ALL PARTIES OF RECORD (Applicant, Petitioners, and Intervenors only):All Parties of Record must prefile testimony with the Commission and with all parties of record. Prefiled TestimonyDeadlines: Applicant's Direct Testimony Due; ; Other Parties of Record Direct Testimony Due:

; Applicant's Rebuttal Testimony Due:; and Other Parties of Record SurrebuttalTestimony Due: All Prefiled Testimony Deadlines are subject to the information as posted on

d D 2 ly 2626- .-P.,

For the most recent information regarding this docket, including changes in scheduled dates included in this Notice,pf f mm dD k lo 2626 .P--PLEASE TAKE NOTICE that any person who wishes to have his or her comments considered as part of theofficial record of this proceeding MUST present such comments in person to the Commission during the hearing.

Persons seeking information about the Commission's procedures should contact the Commission at (803) 896-51006

5/26/16

Public Service Commission of Soutlt Carolina 'tteutiom Clerk's Office 'ost Office Drawer 11669 'olounkia, SC 29211

T H E P U B L I C S E R V I C E C O M M I S S I O N

O F

S O U T H C A R O L I N A

D O C K E T NO. 2 0 1 6 - -E

In Re: Petition of South Carolina Electric ) & Gas Company for Updates and ) Revisions to Schedules Related to the ) Construction of a Nuclear Base Load ) Generation Facility at Jenkinsville, South ) Carolina ) -----------------------------

PETITION FOR UPDATES AND REVISIONS TO THE CAPITAL

COST SCHEDULE AND THE CONSTRUCTION SCHEDULE

South Carolina Electric & Gas Company ("SCE&G" or the "Company") hereby

petitions the Public Service Commission of South Carolina (the "Commission") for an

order approving an updated capital cost schedule and updated construction schedule for the

construction of two 1,117 net megawatt nuclear units (the "Units") to be located at the V.C.

Summer Nuclear Station site near Jenkinsville, South Carolina. This petition (the

"Petition") is filed pursuant to the provisions of the Base Load Review Act ("BLRA"), S.C.

Code Ann. § 58-33-270(E) (2015). In accordance with the provisions of the BLRA,

SCE&G would respectfully show to the Commission the following:

1

BEFORE

THE PUBLIC SERVICE COMMISSION

OF

SOUTH CAROLINA

DOCKET NO. 2016- -E

In Re: Petition of South Carolina Electric& Gas Company for Updates andRevisions to Schedules Related to theConstruction of a Nuclear Base LoadGeneration Facility at Jenkinsville, SouthCarolina

) PETITION FOR UPDATES AND

) REVISIONS TO THE CAPITAL) COST SCHEDULE AND THE) CONSTRUCTION SCHEDULE)

)

South Carolina Electric & Gas Company ("SCE&G" or the "Company") hereby

petitions the Public Service Commission of South Carolina (the "Commission") for an

order approving an updated capital cost schedule and updated construction schedule for the

construction of two 1,117 net megawatt nuclear units (the "Units") to be located at the V.C.

Summer Nuclear Station site near Jenkinsville, South Carolina. This petition (the

"Petition") is filed pursuant to the provisions ofthe Base Load Review Act ("BLRA"), S.C.

Code Ann. $ 58-33-270(E) (2015). In accordance with the provisions of the BLRA,

SCE&G would respectfully show to the Commission the following:

INTRODUCTION

1. SCE&G is a corporation duly organized and existing under the laws of the

State of South Carolina, with its principal offices at 220 Operation Way, Cayce, South

Carolina, 29033.

2. SCE&G 1s engaged in the business of generating, transmitting, and

delivering electricity and providing electric service to the public for compensation.

SCE&G owns and operates an integrated electric utility system that serves approximately

702,000 customers in 24 counties in central and southern South Carolina.

3. Corporate legal counsel for SCE&G in this proceeding are as follows:

K. Chad Burgess Matthew W. Gissendanner South Carolina Electric & Gas Company Mail Code C222 220 Operation Way Cayce, SC 29033 (803) 217-8141 chad. [email protected] matthew .gissendanner@scana. com

Private legal counsel for SCE&G in this proceeding is as follows:

Belton T. Zeigler Womble Carlyle Sandridge & Rice, LLP 1727 Hampton Street Columbia, SC 29201 (803) 454-7720 belton.zeigler@wcsr .com

All correspondence and any other matters relative to this proceeding should be

addressed to these representatives.

2

I. INTRODUCTION

1. SCE&G is a corporation duly organized and existing under the laws of the

State of South Carolina, with its principal offices at 220 Operation Way, Cayce, South

Carolina, 29033.

2. SCE&G is engaged in the business of generating, transmitting, and

delivering electricity and providing electric service to the public for compensation.

SCE&G owns and operates an integrated electric utility system that serves approximately

702,000 customers in 24 counties in central and southern South Carolina.

3. Corporate legal counsel for SCE&G in this proceeding are as follows:

K. Chad BurgessMatthew W. GissendannerSouth Carolina Electric & Gas CompanyMail Code C222220 Operation WayCayce, SC 29033(803) [email protected]@scana.corn

Private legal counsel for SCE&G in this proceeding is as follows:

Belton T. ZeiglerWomble Carlyle Sandridge & Rice, LLP1727 Hampton StreetColumbia, SC 29201(803) [email protected]

All correspondence and any other matters relative to this proceeding should be

addressed to these representatives.

B L R A O R D E R S

4. In Order No. 2009-1 04(A), the Commission made prudency determinations

and approved the proposed construction schedule and forecasted capital cost schedule for

the Units. The approved capital cost was $4.5 billion in 2007 dollars. 1

5. In Order No. 2010-12, the Commission approved SCE&G's request to

update these schedules to reflect timing changes in cash flows based on updated

construction schedules. The guaranteed substantial completion dates ("GSCDs") and

capital cost forecasts for the Units did not change.

6. In Order No. 2011-345, the Commission approved the Company's request to

remove contingency costs from its cost schedules as required by the order of the South

Carolina Supreme Court in South Carolina Energy Users Comm. v. South Carolina Pub.

Serv. Comm'n, 388 S.C. 486, 697 S.E.2d 587 (2010). Order No. 2011-345 reduced the

total estimated capital cost for the Units to approximately $4.3 billion.

7. In Order No. 2012-844, the Commission approved a new milestone schedule

for the Units reflecting an approximate nine month delay in the Nuclear Regulatory

Commission ("NRC") issuance of the Combined Operating Licenses ("COLs") for the

Units. The Commission also approved a forecasted capital cost schedule for the Units of

approximately $4.5 billion.

1 Unless otherwise noted, all amounts reflect SCE&G's portion of the cost of the Units in 2007 dollars.

3

PRIOR BLRA ORDERS

4. In Order No. 2009-104(A), the Commission made prudency determinations

and approved the proposed construction schedule and forecasted capital cost schedule for

the Units. The approved capital cost was $4.5 billion in 2007dollars.'.

In Order No. 2010-12, the Commission approved SCE6'cG's request to

update these schedules to reflect timing changes in cash flows based on updated

construction schedules. The guaranteed substantial completion dates ("GSCDs") and

capital cost forecasts for the Units did not change.

6. In Order No. 2011-345, the Commission approved the Company's request to

remove contingency costs from its cost schedules as required by the order of the South

Carolina Supreme Court in South Carolina Ener Users Comm. v. South Carolina Pub.

Serv. Comm'n, 388 S.C. 486, 697 S.E.2d 587 (2010). Order No. 2011-345 reduced the

total estimated capital cost for the Units to approximately $4.3 billion.

7. In Order No. 2012-844, the Commission approved a new milestone schedule

for the Units reflecting an approximate nine month delay in the Nuclear Regulatory

Commission ("NRC") issuance of the Combined Operating Licenses ("COLs") for the

Units. The Commission also approved a forecasted capital cost schedule for the Units of

approximately $4.5 billion.

'nless otherwise noted, all amounts reflect SCE&G's portion of the cost of the Units in 2007 dollars.

O r d e r N o . 2 0 1 2 - 8 8 4 w a s a p p e a l e d to the S o u t h C a r o l i n a S u p r e m e C o u r t . T h e

S u p r e m e C o u r t a f f i r m e d t h e C o m m i s s i o n ' s rulings in all r e s p e c t s . See S o u t h C a r o l i n a

E n e r g y U s e r s C o m m . v. S o u t h C a r o l i n a E l e c . & Gas, 410 S.C. 3 4 8 , 7 6 4 S . E . 2 d 913 (2014).

9. I n O r d e r N o . 2 0 1 5 - 6 6 1 , t h e C o m m i s s i o n a p p r o v e d S C E & G ' s r e q u e s t for a

n e w c o n s t r u c t i o n m i l e s t o n e s c h e d u l e t i e d to n e w s u b s t a n t i a l c o m p l e t i o n d a t e s for t h e U n i t s

o f June 19, 2 0 1 9 , a n d J u n e 16, 2 0 2 0 , and to u p d a t e t h e c a p i t a l c o s t s o f t h e U n i t s to

a p p r o x i m a t e l y $ 5 . 2 b i l l i o n .

10. N o a p p e a l w a s t a k e n from O r d e r No. 2 0 1 5 - 6 6 1 .

II. FACTUAL BACKGROUND FOR THE REQUEST

11. The current request seeks to update construction schedules and capital cost

schedules to reflect:

a. Changes in construction schedule and costs associated with the October 2015 Amendment to the EPC Contract (the "Amendment");

b. Updated Owner's costs associated with new GSCDs for the Units, certain switchyard costs and other changes principally associated with the changes in the project due to the Amendment;

c. Costs associated with change orders which are being negotiated individually or are otherwise not resolved through the Amendment; and

d. Additional costs to upgrade transmission equipment at the Unit 1 Switchyard to allow it to operate reliably as connected to the grid through the new Units 2 and 3 Switchyard.

12. Construction on the Units continues to progress. As of May 2016,

approximately 3,700 contractor and subcontractor personnel were on site. A majority of

4

8. Order No. 2012-884 was appealed to the South Carolina Supreme Court. The

Supreme Court affirmed the Commission's rulings in all respects. See South Carolina

Ener Users Comm. v. South Carolina Elec. & Gas, 410 S.C. 348, 764 S.E.2d 913 (2014).

9. In Order No. 2015-661, the Commission approved SCE&G's request for a

new construction milestone schedule tied to new substantial completion dates for the Units

of June 19, 2019, and June 16, 2020, and to update the capital costs of the Units to

approximately $ 5.2 billion.

10. No appeal was taken from Order No. 2015-661.

H. FACTUAL BACKGROUND FOR THE RE VEST

11. The current request seeks to update construction schedules and capital cost

schedules to reflect:

a. Changes in construction schedule and costs associated with theOctober 2015 Amendment to the EPC Contract (the "Amendment");

b. Updated Owner's costs associated with new GSCDs for the Units,certain switchyard costs and other changes principally associated withthe changes in the project due to the Amendment;

c. Costs associated with change orders which are being negotiatedindividually or are otherwise not resolved through the Amendment;and

d. Additional costs to upgrade transmission equipment at the Unit 1

Switchyard to allow it to operate reliably as connected to the gridthrough the new Units 2 and 3 Switchyard.

12. Construction on the Units continues to progress. As of May 2016,

approximately 3,700 contractor and subcontractor personnel were on site. A majority of

S o u t h C a r o l i n a residents, and a p p r o x i m a t e l y t w o dozen South

C a r o l i n a b a s e d c o m p a n i e s h a v e i m p o r t a n t s u b c o n t r a c t s for the c o n s t r u c t i o n .

A. The 2015 Amendment to the EPC Contract

13. In early September of2015, CB&I and Westinghouse Electric Company, Inc.

("WEC") (collectively the "Consortium") approached SCE&G and Santee Cooper about

CB&I's desire to exit the project. High-level negotiations ensued.

14. On October 27, 2015, the parties reached an agreement to amend the

Engineering, Procurement and Construction Agreement (the "EPC Contract') under which

the Units are being built.

15. This Amendment allowed CB&I to exit the project and required WEC to take

sole responsibility for the project going forward.

16. WEC's parent company, Toshiba, reaffirmed its guarantee of the EPC

Contract.

17. The Amendment resolved most outstanding disputes under the EPC

Contract, including disputes concerning milestone and progress payments, productivity

and efficiency related costs, and most disputed change orders and notices of changes.

18. The Amendment, including all other benefits discussed below, increased the

EPC Contract price by $137.5 million compared to the estimate approved in Order No.

2015-661.

5

the craft workers are South Carolina residents, and approximately two dozen South

Carolina based companies have important subcontracts for the construction.

A. The 2015 Amendment to the KPC Contract

13. In early September of2015, CB&I and Westinghouse Electric Company, Inc.

("WEC") (collectively the "Consortium") approached SCE&G and Santee Cooper about

CB&I's desire to exit the project. High-level negotiations ensued.

14. On October 27, 2015, the parties reached an agreement to amend the

Engineering, Procurement and Construction Agreement (the "EPC Contract') under which

the Units are being built.

15. This Amendment allowed CB&I to exit the project and required WEC to take

sole responsibility for the project going forward.

16. WEC's parent company, Toshiba, reaffirmed its guarantee of the EPC

Contract.

17. The Amendment resolved most outstanding disputes under the EPC

Contract, including disputes concerning milestone and progress payments, productivity

and efficiency related costs, and most disputed change orders and notices of changes.

18. The Amendment, including all other benefits discussed below, increased the

EPC Contract price by $ 137.5 million compared to the estimate approved in Order No.

2015-661.

U n d e r c e r t a i n a s s u m p t i o n s , t h e C o n s o r t i u m ' s o u t s t a n d i n g q u a n t i f i a b l e c l a i m s

and d i s p u t e s a g a i n s t S C E & G w h i c h w e r e r e s o l v e d t h r o u g h t h e A m e n d m e n t c o u l d h a v e

b e e n v a l u e d at $ 2 2 4 m i l l i o n o r m o r e .

20. T h e $ 1 3 7 . 5 m i l l i o n i n c r e a s e in E P C c o s t d o e s n o t i n c l u d e t h e e f f e c t o f

r e v e r s i n g a c r e d i t o f $ 8 5 . 5 m i l l i o n for l i q u i d a t e d d a m a g e s w h i c h h a d b e e n i n c l u d e d in p r i o r

c o s t e s t i m a t e s . T h e $ 8 5 . 5 m i l l i o n in l i q u i d a t e d d a m a g e s w o u l d h a v e b e e n fully e a r n e d

based on t h e f o r e c a s t s o f c o m p l e t i o n dates for t h e U n i t s w h e n t h e p r i o r e s t i m a t e s w e r e

made.

21. T h e A m e n d m e n t s e t n e w GSCDs o f A u g u s t 31, 2 0 1 9 , a n d A u g u s t 31, 2020,

for t h e U n i t s .

22. T h e A m e n d m e n t i n c r e a s e s l i q u i d a t e d d a m a g e s a n d c o m p l e t i o n i n c e n t i v e s

and ties c e r t a i n p e n a l t i e s to S C E & G ' s r e c e i p t o f F e d e r a l P r o d u c t i o n T a x C r e d i t s ( " P T C s " ) .

23. If schedules are met for both Units, the benefit to customers of the PTCs,

when grossed up for taxes, will be approximately $2.2 billion.

24. The liquidated damages for missing the GSCDs could be as much as $186

million per Unit, which is over four times the current maximum of $43 million per Unit.

25. The Amendment made important changes in the contractual terms of the EPC

Contract governing future change orders due to change in law provisions, which reduce the

opportunity for WEC to make future claims based on legal and regulatory changes.

26. At the time the EPC Contract was executed, the NRC had approved the

design for the AP1000 Unit through Design Control Document Revision 16 (DCD-Rev.

6

19. Under certain assumptions, the Consortium's outstanding quantifiable claims

and disputes against SCE&G which were resolved through the Amendment could have

been valued at $224 million or more.

20. The $ 137.5 million increase in EPC cost does not include the effect of

reversing a credit of $85.5 million for liquidated damages which had been included in prior

cost estimates. The $ 85.5 million in liquidated damages would have been fully earned

based on the forecasts of completion dates for the Units when the prior estimates were

made.

21. The Amendment set new GSCDs of August 31, 2019, and August 31, 2020,

for the Units.

22. The Amendment increases liquidated damages and completion incentives

and ties certain penalties to SCE&G's receipt of Federal Production Tax Credits ("PTCs").

23. If schedules are met for both Units, the benefit to customers of the PTCs,

when grossed up for taxes, will be approximately $2.2 billion.

24. The liquidated damages for missing the GSCDs could be as much as $ 186

million per Unit, which is over four times the current maximum of $43 million per Unit.

25. The Amendment made important changes in the contractual terms of the EPC

Contract governing future change orders due to change in law provisions, which reduce the

opportunity for WEC to make future claims based on legal and regulatory changes.

26. At the time the EPC Contract was executed, the NRC had approved the

design for the AP1000 Unit through Design Control Document Revision 16 (DCD-Rev.

S C E & G to w i t h h o l d d i s p u t e d p a y m e n t s p e n d i n g

a c t i o n by t h e d i s p u t e r e s o l u t i o n board. T h i s r i g h t is s e c u r e d b y a r e f u n d a b l e d e p o s i t o f

$41.3 million. P r e v i o u s l y , S C E & G was r e q u i r e d to p a y 9 0 % o f a n y i n v o i c e it d i s p u t e d

w h i l e t h e d i s p u t e w a s b e i n g r e s o l v e d .

29. T h e A m e n d m e n t e l i m i n a t e s c a l e n d a r - b a s e d p a y m e n t s . All p a y m e n t s w i l l

n o w be t i e d to t h e a c c o m p l i s h m e n t o f s p e c i f i c c o n s t r u c t i o n m i l e s t o n e s .

30. T h e n e w c o n s t r u c t i o n m i l e s t o n e b a s e d p a y m e n t s c h e d u l e is b e i n g d e v e l o p e d

by t h e p a r t i e s a n d w i l l b e d e t e r m i n e d by t h e d i s p u t e r e s o l u t i o n b o a r d i f t h e p a r t i e s are n o t

s u c c e s s f u l .

31. WEC has e n g a g e d F l u o r C o r p o r a t i o n , N u c l e a r D i v i s i o n , h e a d q u a r t e r e d in

G r e e n v i l l e , S o u t h C a r o l i n a , as a c o n s t r u c t i o n m a n a g e r for t h e p r o j e c t . F l u o r has e x t e n s i v e

7

16). The NRC has subsequently approved revisions through DCD-Rev. 19. WEC had

claimed entitlement to additional compensation for items necessary to conform to the

DCD-Rev.19. The Amendment expressly requires WEC to provide Units that fully meet

DCD-Rev. 19, which is the latest revision approved by the NRC, without further price

adjustment.

27. The Amendment creates a dispute resolution board to resolve commercial

disputes between the parties. Rulings on disputed amounts of less than $2.75 million are

final and binding. Rulings on disputes that exceed $2.75 million only affect rights during

construction and may be challenged in court at the completion of the project. Lawsuits may

not be brought under the EPC Contract until the project is completed.

28. The Amendment allows SCE&G to withhold disputed payments pending

action by the dispute resolution board. This right is secured by a refundable deposit of

$4L3 million. Previously, SCE&G was required to pay 90'lo of any invoice it disputed

while the dispute was being resolved.

29. The Amendment eliminates calendar-based payments. All payments will

now be tied to the accomplishment of specific construction milestones.

30. The new construction milestone based payment schedule is being developed

by the parties and will be determined by the dispute resolution board if the parties are not

successful.

31. WEC has engaged Fluor Corporation, Nuclear Division, headquartered in

Greenville, South Carolina, as a construction manager for the project. Fluor has extensive

P u m p e d S t o r a g e , C o p e Coal S t a t i o n , J a s p e r C o m b i n e d C y c l e N a t u r a l Gas

F a c i l i t y , U r q u h a r t U n i t s 1 a n d 2 R e p o w e r i n g and W a t e r e e a n d W i l l i a m s S t a t i o n S 0 2

S c r u b b e r s .

32. W E C has g r a n t e d S C E & G an i r r e v o c a b l e o p t i o n to c o n v e r t t h e E P C C o n t r a c t

to a f i x e d - p r i c e a g r e e m e n t for a t o t a l EPC C o n t r a c t p r i c e .

33. U n d e r t h a t o p t i o n , t h e p r i c e o f t h e w o r k n e c e s s a r y t o c o m p l e t e t h e U n i t s is

fixed at $ 3 . 3 4 5 b i l l i o n w i t h l i m i t e d e x c e p t i o n s for c e r t a i n T i m e a n d M a t e r i a l s ( T & M )

s c o p e s o f w o r k v a l u e d a t a p p r o x i m a t e l y $38.3 million. A l l a m o u n t s p a i d u n d e r the E P C

C o n t r a c t a f t e r J u n e 30, 2 0 1 5 , a r e c r e d i t e d to this p r i c e .

34. T h i s p r i c e c o v e r s all r e m a i n i n g w o r k u n d e r t h e E P C C o n t r a c t ( w i t h t h e

l i m i t e d e x c e p t i o n s for c e r t a i n T & M w o r k ) from J u n e 30, 2 0 1 5 , t o c o m p l e t i o n , e x c e p t future

c h a n g e orders w h i c h a r e O w n e r - d i r e c t e d o r b a s e d on c h a n g e d c i r c u m s t a n c e s .

3 5. T r a n s m i s s i o n C o s t s a n d O w n e r ' s costs r e m a i n the r e s p o n s i b i l i t y o f S C E & G .

36. T h e A g r e e m e n t p r o v i d e s for the e x t e n s i o n o f c e r t a i n e q u i p m e n t and

c o m p o n e n t w a r r a n t e e s t o c o r r e s p o n d to t h e n e w G S C D s .

37. T h e A g r e e m e n t e l i m i n a t e s c e r t a i n b o n u s e s t h a t W E C c o u l d h a v e e a r n e d i f

the actual e l e c t r i c a l g e n e r a t i o n from the U n i t s e x c e e d e d g u a r a n t e e d or a n t i c i p a t e d

mm1mums.

38. T h e f i x e d p r i c e o f f e r e d r e p r e s e n t s an i n c r e a s e o f $ 5 0 5 . 5 4 m i l l i o n in t h e t o t a l

c o s t o f t h e p r o j e c t n e t o f t h e $ 1 3 7 . 5 m i l l i o n a d j u s t m e n t in p r i c e t h a t is o t h e r w i s e p a r t o f t h e

8

mega-project experience and was a contractor for construction of V.C. Summer Unit 1,

Fairfield Pumped Storage, Cope Coal Station, Jasper Combined Cycle Natural Gas

Facility, Urquhart Units 1 and 2 Repowering and Wateree and Williams Station SOz

Scrubbers.

32. WEC has granted SCE&G an irrevocable option to convert the EPC Contract

to a fixed-price agreement for a total EPC Contract price.

33. Under that option, the price of the work necessary to complete the Units is

fixed at $3.345 billion with limited exceptions for certain Time and Materials (T&M)

scopes of work valued at approximately $38.3 million. All amounts paid under the EPC

Contract after June 30, 2015, are credited to this price.

34. This price covers all remaining work under the EPC Contract (with the

limited exceptions for certain T&M work) from June 30, 2015, to completion, except future

change orders which are Owner-directed or based on changed circumstances.

35. Transmission Costs and Owner's costs remain the responsibility of SCE&G.

36. The Agreement provides for the extension of certain equipment and

component warrantees to correspond to the new GSCDs.

37. The Agreement eliminates certain bonuses that WEC could have earned if

the actual electrical generation from the Units exceeded guaranteed or anticipated

minimums.

38. The fixed price offered represents an increase of $505.54 million in the total

cost of the project net of the $ 137.5 million adjustment in price that is otherwise part of the

$ 5 0 5 . 5 4 m i l l i o n r e p r e s e n t s a p p r o x i m a t e l y 7 . 4 % o f t h e f o r e c a s t e d c o s t s c h e d u l e f o r a l l i t e m s

n e e d e d to c o m p l e t e t h e U n i t s w h i c h w a s a p p r o v e d in O r d e r N o . 2 0 1 5 - 6 6 1 .

39. S C E & G h a s g i v e n n o t i c e to W E C t h a t t h e C o m p a n y w i l l e x e r c i s e t h i s o p t i o n

s u b j e c t to f o r m a l c o n c u r r e n c e b y S a n t e e C o o p e r a n d a p p r o v a l o f t h e C o m m i s s i o n .

B. Owner's Cost Revisions

40. Owner's costs include the cost of SCE&G's New Nuclear Development

("NND") team which is primarily responsible for meeting SCE&G's obligations as owner

of the project and as the holder of active NRC licenses to construct and operate the Units.

41. SCE&G's NND team is comprised of over 550 individuals and IS

supplemented by dedicated experts from Santee Cooper. The team is comprised of

individuals with diverse skill sets including highly-skilled professionals in engineering,

nuclear construction management, quality assurance/quality control, training, operational

readiness, and other disciplines. The NND team draws support as needed from the staff of

V.C. Summer Nuclear Unit 1 ("Unit 1 ") and elsewhere from within SCE&G and SCAN A.

42. Extending the duration of the construction project will require SCE&G to

maintain its NND effort in place to support the completion of Units 2 and 3 for an additional

two months for each Unit.

43. In addition, SCE&G has determined that certain upgrades are required to the

Unit 2 and 3 Switchyard which will be treated as Owner's cost. The cost associated with

these upgrades is approximately $1.7 million.

9

Amendment and the reversal of the $ 85.5 million credit for liquidated damages credit. This

$505.54 million represents approximately 7.4'/o of the forecasted cost schedule for all items

needed to complete the Units which was approved in Order No. 2015-661.

39. SCE&G has given notice to WEC that the Company will exercise this option

subject to formal concurrence by Santee Cooper and approval of the Commission.

B. Owner's Cost Revisions

40. Owner's costs include the cost of SCE&G's New Nuclear Development

("NND") team which is primarily responsible for meeting SCE&G's obligations as owner

of the project and as the holder of active NRC licenses to construct and operate the Units.

41. SCE&G's NND team is comprised of over 550 individuals and is

supplemented by dedicated experts from Santee Cooper. The team is comprised of

individuals with diverse skill sets including highly-skilled professionals in engineering,

nuclear construction management, quality assurance/quality control, training, operational

readiness, and other disciplines. The NND team draws support as needed from the staff of

V.C. Summer Nuclear Unit 1 ("Unit 1") and elsewhere from within SCE&G and SCANA.

42. Extending the duration of the construction project will require SCE&G to

maintain its NND effort in place to support the completion ofUnits 2 and 3 for an additional

two months for each Unit.

43. In addition, SCE&G has determined that certain upgrades are required to the

Unit 2 and 3 Switchyard which will be treated as Owner's cost. The cost associated with

these upgrades is approximately $ 1.7 million.

$ 2 0 . 8 million.

C. Cost Associated with Individual Change Orders

45. The Amendment did not resolve change orders and potential change orders

that post-date December 31, 2015, and listed several specific change orders which would

be subject to individual negotiation outside of its terms.

46. Since the date of the Amendment, SCE&G has itemized additional costs

falling outside of the Amendment that are associated with several change orders.

47. These change order-related costs are associated with the following items:

a. Security upgrades and integration of site security systems between the

Units.

b. Updates to life-of-project costs under certain change orders that carry

over year to year. These updates are required to reflect the new GSCDs for the

Units.

c. Costs associated with

(i) additional training support that SCE&G has requested from WEC,

(ii) additional computer simulators to support the training of operating personnel,

(iii) updating site drainage studies in light of current site layout,

(iv) relocating two transmission structures based on updated wetlands delineations,

10

44. SCE&G forecasts that the change in the GSCDs for the Units and other cost

principally associated with the Amendment, as well as certain switchyard costs, will

increase Owner's costs by approximately $20.8 million.

C. Cost Associated with Individual Chan e Orders

45. The Amendment did not resolve change orders and potential change orders

that post-date December 31, 2015, and listed several specific change orders which would

be subject to individual negotiation outside of its terms.

46. Since the date of the Amendment, SCE&G has itemized additional costs

falling outside of the Amendment that are associated with several change orders.

47. These change order-related costs are associated with the following items:

a. Security upgrades and integration of site security systems between the

Units.

b. Updates to life-of-project costs under certain change orders that carry

over year to year. These updates are required to reflect the new GSCDs for the

Units.

c. Costs associated with

(i) additional training support that SCE&G has requested from WEC,

(ii) additional computer simulators to support the training ofoperatingpersonnel,

(iii) updating site drainage studies in light of current site layout,

(iv) relocating two transmission structures based on updated wetlandsdelineations,

10

50. T h a t i n t e g r a t i o n has i n c l u d e d c o n n e c t i n g t h e U n i t 1 S w i t c h y a r d to the grid

t h r o u g h t h e n e w s w i t c h y a r d s e r v i n g U n i t s 2 and 3 and m a k i n g t h e u p g r a d e s n e e d e d to allow

t h e U n i t 1 s w i t c h y a r d t o o p e r a t e r e l i a b l y in this c o n f i g u r a t i o n .

51. R e c e n t e v a l u a t i o n s o f t h e s w i t c h y a r d s h a v e s h o w n t h e n e e d to a d d a d d i t i o n a l

c a p a c i t o r s in t h e U n i t 1 s w i t c h y a r d to e n s u r e t h a t it o p e r a t e s r e l i a b l y i n t h i s c o n f i g u r a t i o n .

52. T h e c o s t o f t h e s e a d d i t i o n a l c a p a c i t o r s is a p p r o x i m a t e l y $4.3 m i l l i o n .

I I I . U P D A T E D C O N S T R U C T I O N S C H E D U L E

53. A t t a c h e d t o this f i l i n g as Exhibit 1 is an updated construction milestone

schedule for the project which aligns all milestones as approved in Order No. 2015-661 to

the new GSCDs and to the current construction schedules.

54. SCE&G requests that the Commission approve Exhibit 1 as the revised

construction schedule for the project. As to all matters pertaining to the schedule revisions

11

(v) adding a third floor to the service building to accommodateadditional workshops and staff, and

(vi) setting up a secure repository for escrowed software anddocumentation.

48. The additional costs associated with these change orders is approximately

$ 52.5 million.

D. Transmission Cost Revisions

49. The cost of the project includes the cost of transmission facilities and

upgrades necessary to integrate the Units onto SCE&G's transmission grid.

50. That integration has included connecting the Unit 1 Switchyard to the grid

through the new switchyard serving Units 2 and 3 and making the upgrades needed to allow

the Unit 1 switchyard to operate reliably in this configuration.

51. Recent evaluations of the switchyards have shown the need to add additional

capacitors in the Unit 1 switchyard to ensure that it operates reliably in this configuration.

52. The cost of these additional capacitors is approximately $4.3 million.

III. UPDATED CONSTRUCTION SCHEDULE

53. Attached to this filing as Exhibit I is an updated construction milestone

schedule for the project which aligns all milestones as approved in Order No. 2015-661 to

the new GSCDs and to the current construction schedules.

54. SCE&G requests that the Commission approve Exbibit I as the revised

construction schedule for the project. As to all matters pertaining to the schedule revisions

11

O r d e r No. 2009-1 0 4 ( A ) , the C o m m i s s i o n r e q u i r e s S C E & G to p r o v i d e and

annual u p d a t e on c o n s t r u c t i o n p r o g r e s s . S C E & G i n t e n d s to p r o v i d e t h e 2016 u p d a t e

t h r o u g h t h e t e s t i m o n y o f w i t n e s s e s in t h i s docket.

IV. UPDATED COST FORECASTS

56. Attached to this filing as Exhibit 2 is an updated capital cost schedule for the

Units. The timing of all cash flows has been updated to reflect the current construction and

payment schedules.


capital cost schedule for the project. As to all matters pertaining to the capital cost updates

reflected on Exhibit 2, SCE&G requests the Commission to affirm that SCE&G's actions

associated with these schedule changes have been reasonable and prudent.

58. The updated capital cost schedule set forth in Exhibit 2 also reflects the most

current inflation indices applied as mandated by the Commission in Order No. 2009-

104(A).

59. For ease of reference, Exhibit 3 provides information showing the variation

between the capital cost schedule approved by the Commission in Order No. 2015-661 and

the capital cost schedule contained in Exhibit 2.

60. Exhibit 4 provides a summary reconciliation of the changes in forecasted

costs shown on Exhibit 2 to those approved in Order No. 2015-661. Also shown is a

12

reflected on Exbibit 1, SCE&G requests the Commission to affirm that SCE&G's actions


55. By Order No. 2009-104(A), the Commission requires SCE&G to provide and

annual update on construction progress. SCE&G intends to provide the 2016 update

through the testimony of witnesses in this docket.

IV. UPDATED COST FORECASTS

56. Attached to this filing as Exhibit Z is an updated capital cost schedule for the

Units. The timing of all cash flows has been updated to reflect the current construction and

payment schedules.


capital cost schedule for the project. As to all matters pertaining to the capital cost updates

reflected on Exhibit 2, SCE&G requests the Commission to affirm that SCE&G's actions


58. The updated capital cost schedule set forth in Exbibit 2 also reflects the most

current inflation indices applied as mandated by the Commission in Order No. 2009-

104(A).

59. For ease of reference, Exhibit 3 provides information showing the variation

between the capital cost schedule approved by the Commission in Order No. 2015-661 and

the capital cost schedule contained in Exiiibir 2.

60. Exbibii 4 provides a summary reconciliation of the changes in forecasted

costs shown on Exhibit 2 to those approved in Order No. 2015-661. Also shown is a

12

O r d e r N o . 2 0 1 5 - 6 6 1 t o t h o s e c u r r e n t l y

i n effect.

V. LEGAL STANDARDS AND CONCLUSIONS

61. Pursuant to S.C. Code Ann. § 58-33-270(E), when a utility petitions for

adjustments in the construction schedule or capital cost schedule for a project being

constructed under the BLRA, the Commission "shall grant the relief requested if, after a

hearing, the commission finds: (1) as to the changes in the schedules, estimates, findings,

or conditions, that the evidence of record justifies a finding that the changes are not the

result of imprudence on the part of the utility .... "

62. SCE&G's actions associated with the Amendment and all changes in the

construction schedule and forecast of capital costs reflected in Exhibit 1 and Exhibit 2

have been reasonable and prudent.

63. SCE&G will continue to monitor and evaluate the construction schedule and

schedule of capital costs. To the extent future revisions or updating of Exhibit 1 or Exhibit

2 or other revisions under S.C. Code Ann. § 58-33-270(E) are required, SCE&G will

propose such changes for review by the Commission, either through updating Exhibit 1

and Exhibit 2 during this proceeding or through future filings and proceedings.

VI. REQUEST FOR RELIEF

WHEREFORE, South Carolina Electric & Gas Company respectfully requests that

the Commission set the current matter for hearing and thereafter, pursuant to S.C. Code

Ann. § 58-33-270(E),

13

comparison of the escalation indices in effect under Order No. 2015-661 to those currently

in effect.

V. LEGAL STANDARDS AND CONCLUSIONS

61. Pursuant to S.C. Code Ann. tj 58-33-270(E), when a utility petitions for

adjustments in the construction schedule or capital cost schedule for a project being

constructed under the BLRA, the Commission "shall grant the relief requested if, after a

hearing, the commission finds: (1) as to the changes in the schedules, estimates, findings,

or conditions, that the evidence of record justifies a finding that the changes are not the

result of imprudence on the part of the utility...."

62. SCE&G's actions associated with the Amendment and all changes in the

construction schedule and forecast of capital costs reflected in Exhibit 1 and Exhibit Z

have been reasonable and prudent.

63. SCE&G will continue to monitor and evaluate the construction schedule and

schedule of capital costs. To the extent future revisions or updating ofExhibit 1 or Exbibir

2 or other revisions under S.C. Code Ann. tj 58-33-270(E) are required, SCE&G will

propose such changes for review by the Commission, either through updating Exbibii 1

and Exhibit Z during this proceeding or through future filings and proceedings.

VI. RE UEST FOR RELIEF

WHEREFORE, South Carolina Electric & Gas Company respectfully requests that

the Commission set the current matter for hearing and thereaIIer, pursuant to S.C. Code

Ann. II 58-33-270(E),

13

U n i t s u n d e r S . C . C o d e A n n . § 5 8 - 3 3 - 2 7 5 ( A ) .

C. E n t e r a f i n d i n g t h a t n o n e o f t h e s e c h a n g e s a r e t h e r e s u l t o f a n y i m p r u d e n c e o n t h e

p a r t o f S C E & G .

D. A l l o w S C E & G t o p r o v i d e t h e a n n u a l u p d a t e o n c o n s t r u c t i o n p r o g r e s s as r e q u i r e d

b y O r d e r N o . 2 0 0 9 - 1 0 4 ( A ) t h r o u g h i t s w i t n e s s e s i n t h i s d o c k e t .

E. G r a n t o t h e r r e l i e f as m a y b e a p p r o p r i a t e .

C a y c e , S o u t h C a r o l i n a

M a y 2 6 , 2 0 1 6

R e s p e c t f u l l y s u b m i t t e d ,

Kf(!:{jk Matthew W. Gissendanner South Carolina Electric & Gas Company Mail Code C222 220 Operation Way Cayce, SC 29033 (803) 217-8141 chad. [email protected] matthew .gissendanner@scana. com

Belton T. Zeigler Womble Carlyle Sandridge & Rice, LLP 1727 Hampton Street Columbia, SC 2920 1 (803) 454-7720 [email protected]

Attorneys for South Carolina Electric & Gas Company

14

A. Approve the exercise of the fixed price payment option.

B. Approve the updated construction schedule attached as Exhibit 1, and the updatedcapital cost schedule attached as Exliibir 2, as they may be amended during thependency of this proceeding, to be the operative schedules for construction of theUnits under S.C. Code Ann. II 58-33-275(A).

C. Enter a finding that none of these changes are the result of any imprudence on thepart of SCE&G.

D. Allow SCE&G to provide the annual update on construction progress as requiredby Order No. 2009-104(A) through its witnesses in this docket.

E. Grant other relief as may be appropriate.

Respectfully submitted,

Matthew W. GissendannerSouth Carolina Electric & Gas CompanyMail Code C222220 Operation WayCayce, SC 29033(803) 217-8141chad.burgess [email protected]

Belton T. ZeiglerWomble Carlyle Sandridge & Rice, LLP1727 Hampton StreetColumbia, SC 29201(803) [email protected]

Attorneys for South Carolina Electric & Gas Company

Cayce, South CarolinaMay 26, 2016

14

E X H I B I T S

E X H I B I T 1 - An updated milestone schedule for the Units.

EXHIBIT 2- An updated capital cost schedule for the Units which, if approved, will

replace Exhibit F of the original Combined Application for a Certificate of

Environmental Compatibility and Public Convenience and Necessity and

for a Base Load Review Order for the Construction and Operation of a

Nuclear Facility in Jenkinsville, South Carolina, as approved in Order No.

2009-104(A) and as updated in Order Nos. 2010-12, 2011-345, 2012-884,

and 2015-661.

EXHIBIT 3 - A schedule showing the variation between the capital cost schedule

approved by the Commission in Order No. 2015-661 and the capital cost

schedule contained in Exhibit 2 . .

EXHIBIT 4 - A schedule showing the reconciliation of the gross construction dollars

shown in Exhibit 2 to those approved by the Commission in Order No.

2015-661. Also shown is a comparison of the escalation indices in effect

under Order No. 2015-661 to those currently in effect.

15

LIST OF EXHIBITS

EXHIBIT 1 — An updated milestone schedule for the Units.

EXHIBIT 2 — An updated capital cost schedule for the Units which, if approved, will

replace Exhibit F of the original Combined Application for a Certificate of

Environmental Compatibility and Public Convenience and Necessity and

for a Base Load Review Order for the Construction and Operation of a

Nuclear Facility in Jenkinsville, South Carolina, as approved in Order No.

2009-104(A) and as updated in Order Nos. 2010-12, 2011-345, 2012-884,

and 2015-661.

EXHIBIT 3 — A schedule showing the variation between the capital cost schedule

approved by the Commission in Order No. 2015-661 and the capital cost

schedule contained in Exhibit 2.

EXHIBIT 4 — A schedule showing the reconciliation of the gross construction dollars

shown in Exhibit 2 to those approved by the Commission in Order No.

2015-661. Also shown is a comparison of the escalation indices in effect

under Order No. 2015-661 to those currently in effect.

15

ID Order No . 2015-661 Description

1 Approve Engineering Procurement and Construction Agreement

2 Issue POs to nuclear component fabricators for Units 2 & 3 Containment Vessels

3 Contractor Issue PO to Passive Residual Heat Removal Heat Exchanger Fabricator- First Payment- Unit 2

4 Contractor Issue PO to Accumulator Tank Fabricator- Unit 2

5 Contractor Issue PO to Core Makeup Tank Fabricator- Units 2 & 3

6 Contractor Issue PO to Squib Valve Fabricator- Units 2 & 3

7 Contractor Issue PO to Steam Generator Fabricator- Units 2 & 3

8 Contractor Issue Long Lead Material PO to Reactor Coolant Pump Fabricator- Units 2 & 3

9 Contractor Issue PO to Pressurizer Fabricator- Units 2 & 3

10 Contractor Issue PO to Reactor Coolant Loop Pipe Fabricator- First Payment- Units 2 & 3

11 Reactor Vessel Internals -Issue Long Lead Material PO to Fabricator- Units 2 & 3

12 Contractor Issue Long Lead Materia l PO to Reactor Vessel Fabricator- Units 2 & 3

13 Contractor Issue PO to Integrated Head Package Fabricator- Units 2 & 3

14 Control Rod Drive Mechanism Issue PO for Long Lead Material to Fabricator- Units 2 & 3- first payment

15 Issue POs to nuclear component fabricators for Nuclear Island structural CA20 Modules

16 Start Site Specific and balance of plant detailed design

17 Instrumentation & Control Simulator- Contractor Place Notice to Proceed- Units 2 & 3

18 Steam Generator -Issue Fina l PO to Fabricator for Units 2 & 3

19 Reactor Vessel Internals- Contractor Issue PO for Long Lead Material (Heavy Plate and Heavy Forgings) to Fabricator- Units 2 & 3

20 Contractor Issue Final PO to Reactor Vessel Fabricator- Units 2 & 3

21 Va ri able Frequency Drive Fabricator Issue Transformer PO- Units 2 & 3

22 Start clearing, grubbing and grading

23 Core Makeup Tank Fabricator Issue Long Lead Material PO- Units 2 & 3

24 Accumulator Tank Fabricator Issue Long Lead Material PO- Units 2 & 3

25 Pressurizer Fabricator Issue Long Lead Material PO- Units 2 & 3

26 Reactor Coolant Loop Pipe- Contractor Issue PO to Fabricator- Second Payment- Units 2 & 3

27 Integrated Head Package - Issue PO to Fabricator- Units 2 and 3- second payment

28 Control Rod Drive Mechanisms- Contractor Issue PO for Long Lead Materia l to Fabricator- Units 2 & 3

29 Contractor Issue PO to Passive Residua l Heat Remova l Heat Exchanger Fabricator- Second Payment- Units 2 & 3

30 Start Parr Road intersection work

31 Reacto r Coolant Pump -Issue Final PO to Fabricator- Units 2 & 3

32 Integrated Head Packages Fabricator Issue Long Lead Material PO- Units 2 & 3

33 Design Finalization Payment 3

34 Start site development

35 Contractor Issue PO to Turbine Generator Fabricator- Units 2 & 3

36 Contractor Issue PO to Main Transformers Fabricator- Units 2 & 3

37 Core Makeup Tank Fabricator Notice to Contractor Receipt of Long Lead Material- Units 2 & 3


39 Turbine Generator Fabricator Issue PO for Condenser Material- Unit 2

40 Reacto r Coolant Pump Fabricator Issue Long Lead Material Lot 2- Units 2 & 3

41 Passive Residua l Heat Removal Heat Exchanger Fabricator Receipt of Long Lead Material- Units 2 & 3


Start erection of construction buildings, to include craft facilities for personnel, tools, equi pment; first aid faci lit ies; field offices for site

43 management and support personnel; temporary warehouses; and construction hiring office

44 Reactor Vessel Fabricator Notice to Contractor of Receipt of Flange Nozzle Shell Forging- Unit 2

45 Design Fina lization Payment 6

46 Instrumentation and Control Simulator- Contractor Issue PO to Subcontractor for Rad iation Monitor System- Units 2 & 3

47 Reactor Vessel Internals- Fabricator Start Fit and Welding of Core Shroud Assembly- Unit 2

48 Turbine Generator Fabricator Issue PO for Moisture Separator Reheater/Feedwater Heater Material- Unit 2

-- ___ 1~---- -- Rea~o~~oolant Loop Pipe Fabricator Acceptance of Raw Material- Unit 2

South Carolina Electric & Gas Company

Order No. 2015-661 Date

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Revised Completion Date

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Unit

Exhibit 1 Page 1 of 3

Exhibit 1

Page1 of 3

Trackm9 ID Order No 2015-661 DescnpiionDt'dts No.

2015661 DateRevised

Completion Date Unit

Issue PO t u I rcompollentfabricatorsforUnlU2lk3containmentVesselsContractor Issue PO to Passive Residual Heat Removal Heat Exchanger Fabncator- First Payment-Unit 2

Co tractorlssuePQtoAccumulatorTankFabricator-Unlt25 ContractorlssuePQtoC r M k upT kF b t -U t 2IL36 C t G I u PQtoSquibyalveFabncator-Unrts2IL37 contramorlss *pot st mG*n r t rF bi t -Unt 2&3

Contractorlssue Lang Lead Matenal PD to Reactor Co I nt Pump F brw t r-Unt 28 3

9 C ntr m I POt P«i F bn t -Unm2IL3

C pitCompleteCompleteCompleteCo pl tCompleteC pit0 mpi teC pit

Cont pl

CompleteCmpltCompleteColl Pl t0 mpi tC pitO pl tComplete

10

12

1314

1516

18

192021

222324

25

26

2728

29

30

31

32

33

35

36

37

38

39

40

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42

43

45

46

47

49

0 ntramor Issue pote Reactor coolant Loop Hpe Fabdcator- First Payment- Units 2 lk 3

R t rV Ii t mi -I sueLongLeadMaterialPOtofabrlcater-Unlts2ik3ContractorlssueLongLeadMatenalPDtoiie ctorVe elF bri t r-Unit 283Contractor issue PD to lntegr ted H d P k g F b I t - U ts 2 IL 3

0 t IR dDI M h I I u PQf Lo gL adMaterialtoFabricator-Unts2IL3-firstpaymentiss e POs ton I r mpo ntf bn t ra for Nuslear island structural CA20 ModulesSt HSit Sp if db I nceofpla tdetaReddeslgninstrumentation&ContolSIm I t r-0 nt rt Pl N tl t Pr d ~ Unit zlt 3

Steam Generator- Issue Final PD to Fabncator for Units 2 & 3

R actor V ss I Interrlals-Contractor Issue PO for Long Lead Material (Heavy Plate and Heavy Forgings) to Fabricator- Units 2 8 3

Contractor Issue FInal PO to Reactor Vessel Fabricate - Umts 2 & 3

VariableFreq *nWDH eF bric t rl Tr nN rm PQ-Units2!k3Startcleanng,grubbing ndgr d 8C reM k pT nkF brl t rl L ngz dM t I IPQ-U t 2IL3Accumulator Tank Fabricator Issue long Lead Matenal PQ- Unrts 2 & 3

Pressurizer Fabricator issue Long Lead Matenal PO- Units 2 Ik 3

Reactor Coolant Loop Pipe - Contractor Issue PQ to Fabricator- Second Payment - Umts 2 & 3

IntegratedHeadPackage-IssuePOtoF brc tor-Units2 ndS- * ndp ym tCnt IgdDH M hnrm-0 t G I PofrLngL dMt lit Fbri t -Unit283Cont actor issue PO to Passive Residual Heat Removal Heat Exchanger Fabricator-Second Payment- Units 2 8 3

Reactor Coolant Pump -Issue Final PO to Fabncator- Units 2 8 3

Integratedhe dP ck ge F bn t rl u L gL dM t I IPO-U ts2IL3D ignFn li ti nP y t3Stmit dVIP t0 nt cm I u PoteTurbineGeneratorFabrlcator-Units 2ik3

Core Makeup Tank Pa b nestor Notice to Contractor Receipt of Long Lead Maten at - Unrts 2 Ik 3

Design Fina laotian Payment 4

R t C I t Pump Fabric ter Issue Long Lead Materialkot 2-Units 2!k 3

PassiveResidualHeatRemo alHeatExchangerF bric torR* wpt fL ngL dM t*ri I-U t 2IL3

strt rmwn f nt m nb Idng,t nid wftf lit f p nl,t I, quip t;f t idf ilit,fid M f it

man gement ndsupportp r nn kt mporaww houses;andconstructionhiringoffice

R morVe elFabricatorNoticetoContractorofReceiptofFlangeNotzleShellForgmg-Unit2Design Finalization Payment 6

nstrumentabonandControlsim I t r-C tr t rl Pot 5 b t m f rR di ti M it Syt ~ U it 28 3

t rV II t I -F b I t St HFit dW Idi g fC ShoudA bly-Unit2bi 6 t rF b I t rl su POforMoistu eSeparatorReheater/FeedwaterHeaterMaterwl-Unit2

0 I tL pPip F bd t A«pt fRawM t rial-Unit2

CompleteComplete0 mpi tCo pitCompleteCo pl teCompleteC mpl tComplete

CompleteCompleteC pitC pitC pitCompleteCompleteCompleteCompleteCmpltComplete

C pl t

Complete

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CompleteComplete

Co pl tCompleteC pitC pitComplete0 mplbne

Complete

Co plate

Complete

C mpl te

C mpl t

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CompleteCompleteCo plateC pl tCompleteCo plat0 mpleteCo pitC pitCompleteC pitCo pitCIPltCompleteCompleteCompleteCompleteC pl tCo pl te

Complete

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CompleteCmpltComplete

CompleteComplete

C pitC pit0 mpi teCompleteComplete

C mplete

Complete

C pitComplete

C pitComplete

CompleteComplete0 mpi t

South Carolina Electnc & Gas Company

I D O r d e r N o . 2 0 1 5 - 6 6 1 D e s c r i p t i o n

so R e a c t o r Vessel I n t e r n a l s - F a b r i c a t o r S t a r t W e l d N e u t r o n S h i e l d S p a c e r Pads t o A s s e m b l y - U n i t 2

51 Control Rod Drive Mechanisms- Fabricator to Start Procurement of Long Lead Material- Unit 2

52 Contractor Notified that Pressurizer Fabricator Performed Cladding on Bottom Head - Unit 2

53 Start excavation and foundation work for the standa rd plant for Unit 2

54 Steam Generator Fabricator Notice to Contractor of Receipt of 2nd Steam GeneratorTubesheet Forging- Unit 2

55 Reactor Vessel Fabricator Notice to Contractor of Outlet Nozzle Welding to Flange Nozzle Shell Completion- Unit 2

56 Turbine Generator Fabricator Notice to Contractor Condenser Fabrication Started- Unit 2

57 Complete preparations for receivi ng the first module on site for Unit 2

58 Steam Generator Fabricator Notice to Contractor of Receipt of 1st Steam Generator Transition Cone Forging- Unit 2

59 Reactor Coolant Pump Fabricator Notice to Contractor of Manufacturing of casing Completion- Unit 2

60 Reactor Coolant Loop Pipe Fabricator Notice to Contractor of Machining, Heat Treating & Non-Destructive Testing Completion- Unit 2

61 Core Makeup Tank Fabricator Notice to Contractor of Satisfactory Completion of Hydrotest - Unit 2

62 Polar Crane Fabricator Issue PO for Main Hoist Drum and Wire Rope - Units 2 & 3

63 Control Rod Drive Mechanisms- Fabricator to Start Procurement of long lead Material- Unit 3

64 Turbine Generator Fabricator Notice to Contractor Condenser Ready to Ship- Unit 2

65 Start placement of mud mat fo r Unit 2

66 Steam Generator Fabricator Notice to Contractor of Receipt of 1st Steam Generator Tubing- Unit 2

67 Pressurizer Fabricator Notice to Contractor of Welding of Upper and Intermediate Shells Completion- Unit 2

68 Reactor Vessel Fabricator Notice to Contractor of Closure Head Cladding Completion- Unit 3

69 Begin Unit 2 first nuclear concrete placement

70 Reactor Coolant Pump Fabricator Notice to Contractor of Stator Core Completion- Unit 2

71 Fabricator Start Fit and Welding of Core Shroud Assembly- Unit 2

72 Steam Generator Fabricato r Notice to Contractor of Complet ion of 1st Steam Generator Tubing Installat ion- Unit 2

73 Reactor Coolant Loop Pipe - Shipment of Equipment to Site - Unit 2

74 Control Rod Drive Mechanism- Ship Remainder of Equipment (Latch Assembly & Rod Travel Housing) to Head Supplier- Unit 2

75 Pressurizer Fabricator Notice to Contractor of Welding of Lower Shell to Bottom Head Completion- Unit 2

76 Steam Generator Fabricator Notice to Contractor of Completion of 2nd Steam Generator Tubing Installation - Unit 2

77 Design Finalization Payment 14 78 Set module CA04 for Unit 2 79 Passive Residual Heat Removal Heat Exchanger Fabricator Notice to Contractor of Final Post Weld Heat Treatment- Unit 2

80 Passive Residual Heat Removal Heat Exchanger Fabricator Notice to Contractor of Completion of Tubing- Unit 2

81 Polar Crane Fabricator Notice to Contractor of Girder Fabrication Completion- Unit 2

82 Turbine Generator Fabricator Notice to Contractor Condenser Ready to Ship- Unit 3 83 Set Containment Vessel ring #1 for Unit 2

84 Reactor Coolant Pump Fabricator Delivery of casings to Port of Export- Unit 2

85 Reactor Coolant Pump Fabricator Notice t o Contractor of Sta tor Core Completion- Unit 3

86 Reactor Vessel Fabricator Notice to Contractor of Receipt of Core Shel l Forging- Unit 3

87 Contractor Notified that Pressurizer Fabricator Performed Cladding on Bottom Head - Unit 3

88 Set Nuclear Island structural module CA03 for Unit 2

89 Squib Valve Fabricator Notice to Contractor of Completion of Assembly and Test for Squib Valve Ha rdware- Unit 2

90 Accumulator Tank Fabricator Notice to Contractor of Satisfactory Completion of Hydrotest- Unit 3

91 Polar Crane Fabricator Notice to Contractor of Electric Panel Assembly Completion- Unit 2

92 Start containment la rge bore pipe supports for Unit 2

93 Integrated Head Package - Shipment of Equipment to Site- Unit 2

94 Reactor Coolant Pump Fabricator Notice to Contractor of Final Stator Assembly Completion - Unit 2

95 Steam Generator Fabricator Notice to Contractor of Completion of 2nd Steam Generator Tubing Installation- Unit 3

96 Steam Generator Fabricator Notice to Contractor of Satisfactory Completion of 1st Steam Generator Hydrotest - Unit 2

97 Start concrete fill of Nuclear Island structural modules CAOl and CA02 for Unit 2

98 Passive Residual Heat Removal Heat Exchanger- Delivery of Equipment to Port of Entry- Unit 2

99 Refueling Machine Fabricator Notice to Contractor of Satisfactory Completion of Factory Acceptance Test- Unit 2


Order No. 2015-661 Date

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12/28/2015

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7/18/2016

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6/20/2016

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12/10/2016

Complete Complete

Unit

Unit 2

Unit 2


Exhibit 1

Page2of3

Traclung ID Order No 20TGGBI DescnpbonOrder No

20IGBBI DateReused

Completion Date Unt

50

51

52

53

54

55

56

57

53

59

R m Vessellnt n le-Fabric t rst HWeldN utronShreldSp e PadstoAs*mbly-Unit2Control Rod DriveMechanisms-FabricatortogtartProcu ementofLo gLead Matelot-Unit2C bumor Notifi d th t pres ru r Fabricator p rformed cladding on Bottom Head-Unit 2

St H ti df d to rkf rthest d dpi ntforunt2st G t Fb«t Nt t c t m fR pt f2dst G t Tb h tFqdg-Umt2ReactorV eel Fabricator Notlceto Contractorof Dutlet Nozzle Weldmgto Flange NozzleSheg Completion- Unit 2

Tui» 6 eratorF bi to Nob t Co tra t 0 de s rF bi tionst rt d-Umt2C plate pr pa ti sforre I I gth f t d I o sit f U t2Ste m Gener t r Fabncator Notme to Contractor of Receipt of 1st Steam Generator Transition Cone Forging- Un t 2

ReactorCoolantPumpFabricatorN tic toContrart fManuf mui gofca I gC pletio -U t2

C plat

Complete

Compt te

Dmpl t

Ompl t

C mplete

0 pitComplete

O mplete

Complete

Co pitComplme

C pitC pl tCo pl tComplete

Complete

Complete

Complete

Complet

60

61

6263

Re m 0 I tto 0 pipe F b mto N tl etocontramo of Machrnmg, He tTreatinglL Non Destruct e Testing completion ~ Unlt2Core Makeup Tank Fabricator Notice to Contractor of Satisfactory Completion of Hyd ot st- Un t 2

Polar Crane Fabncator Issue PO for Main Hoist Drum and Wire Rope -Units 2 8 3

0 nt lilodDi M h nlsms-F b« tortost HP u ament fLongLeadM t rql-Unit3

Co pl tCompleteCompleteO plate

Complot

CompleteCompleteCo pit

64 T bi 6 t F b imtorN t t Co t t 0 d R dyto ship-U it 2 Complet Complet

66

67

68

6970

71

72

737475

7677787980

8182838485

873839

91

929394

95

96979899

Start placement of mud mat for Unit 2

Steam Generator Fabricator Notice to Contractor of Receipt of 1st Steam Generator Tubing- Unit 2

Pressunzer Fabricator Notice to Contractor of Weld ng of Upper and Intermediate Shells Completion - Unit 2

R ctorV ss IF bricatorNoti t ContractorofClosureHeadCI ddingCompl tmn-Unit3Begin Unit 2 first nuclear concrete placementReamorcoolantpu pFabricatorNoticetocontractorofstatorcorecompletion-Umt2F brcatorst rtmt ndWelding fc mshr dA mbly-0 t2Steam Generator Fabricator Notice to Contractor of Completion of 1st Steam Generator Tubing instaRatlon -Unit 2

Reactor Coolant Loop Pipe- Sh pment of Equ pment to 5 te - Unit 2

0 ntrolRodD Meehan m-ShpR m nd fEq p ent(l thAsemblylkR dT elH I g)toHe ds ppber-Unit2Press rzerF brm t rNotmet C nt ctorofW id gofko rsh RtoBott H dComplet n-Unit2St» G t Fb t Nt t 0 t trf0 pit f2dst G t Tblgl tgt -0 t2D g Fnadzado P y nt145 tmoduleCA04forU it2pa i e Residual H t Removal H t Dr hanger Fabri tor Note to contractor of Frn I post weld He t Treatment-Unit 2Passive Residual Heat Removal Heat Exchanger Fabncator flotice to Contractor of Completion of Tubing- Unit 2

Polar Crane Fabncator Notice to Contractor of Girder Fabrication Completion - Umt 27 bineGenert rF bncatorN tr tocont m rc d*nserR dyt Ship-Unit3

Reactor Coolant Pump Fabricator Delivery of Casings to Port of Export - Unit 2R m rcoolantpu pfabdcatordodmtocontractorofstamrcoreco pl ton-Unit3R toryesselF brq torNotcet 0 ntmmorofR iptofComsh UF gmg-U n3Co tractorNotf dthatP casu F brc torP H dCladdi g BottomH d-Unit35 tNuclearlsla d tructuralmoduleCA03forUnit2Sq bv Iv F b t rNotc t o t ctorofc pl to ofA blyandTestf squibvalveH m e-U it2A mul ter Ta kF bricatorNoti t Co tractor fs dsfactoNC plmionofHyd t st-Unit3P I Cran F bi t Not t C t ctor fEI m P IA blyCo pit -Unit2Start containment I rge bore pip* pports for Un t2Integrated Head Package-Shipment of Equipment to 5 te- Unit 2

Reactor Cooiant Pump Fabricator Notice to Contractor of Final Stator Assembly Completion-Unit 2

Steam Generator Fabricator Notice to Contractor of Completion of 2nd Steanl Generator Tubing InstaRatlon -Unit 3

SteamGeneratorF bdcatorNodcetoContra«torofs ti factoryCompl tionoflstst mGenerato Hyd otest-U t2start oncrete f 0 of Nuclear Island mrumural module cadi and EA02 for Unit 2

Passive Residual Heat Removal Heat Exchanger- Delivery of Equipment to Port of Entry - Unit 2ilefu sling Machine Fabricator Notice to Contractor of Satisfactory Completion of Factory Ameptance Test- Unit 2

Complete

Complete0 plateCo pietC pl te0 plateCo tpl tComplete

C pl teC mpleteCompleteCompleteCompleteCompleteCompleteCompl tCo plateCompleteCompleteCompleteCompleteCompleteComplete

12/28/2015CompleteO pl teCompleteCompleteO mpletComplet

CompleteComplete7/18/2016C mpleteComplete

Complete

Complete0o plateCo r st p I et

CompleteConlpl tComplet

Complete

CompletCompleteCompleteCom letsCompleteCompleteCompleteOmpl tColt pl tComplete0 mpleteCompleteCompl teCompleteCom lets6/20/2016CompleteCo pl tCompleteCompleteC pl tC pl tCompleteComplete

12/10/2016Compt teComplete

Unit 2

unt2

South Carolina Electnc 6 Gas Company

O r d e r No . 201~61 Description

100 Deliver Reactor Vessel Interna ls to Port of Export- Unit 2

101 Set Unit 2 Containment Vessel #3

102 Steam Generator- Contractor Acceptance of Equipment at Port of Entry- Unit 2

103 Turbine Generator Fabricator Notice to Contractor Turbine Generator Ready to Ship - Unit 2 104 Pressurizer Fabricator Notice to Contractor of Satisfactory Completion of Hydrotest - Unit 3 105 Polar Crane- Shipment of Equipment to Site- Unit 2

106 Receive Unit 2 Reactor Vessel on site from fabricator 107 Set Unit 2 Reactor Vessel

108 Steam Generator Fabricator Notice to Contractor of Completion of 2nd Channel Head to Tubesheet Assembly Welding- Unit 3

109 Reactor Coolant Pump Fabricator Notice to Contractor of Final Stator Assembly Completion- Unit 3

110 Reactor Coolant Pump- Shipment of Equipment to Site (2 Reactor Coolant Pumps)- Unit 2

111 Place first nuclear concrete for Unit 3

112 Set Unit 2 Steam Generator

113 Main Transformers Ready to Ship- Unit 2 114 Complete Unit 3 Steam Generator Hydrotest at fabricator

115 Set Unit 2 Containment Vessel Bottom Head on base mat legs

116 Set Unit 2 Pressurizer Vessel

117 Reactor Coolant Pump Fabricator Notice to Contractor of Satisfactory Completion of Factory Acceptance Test- Unit 3

118 Deliver Reactor Vessel Internals to Port of Export- Unit 3

119 Main Transformers Fabricator Issue PO for Material - Unit 3

120 Complete welding of Unit 2 Passive Residua l Heat Removal System piping

121 Steam Generator- Contractor Acceptance of Equipment at Port of Entry- Unit 3

122 Refueling Machine- Shipment of Equipment to Site- Unit 3

123 Set Unit 2 Po la r Crane

124 Reactor Coolant Pumps- Shipment of Equipment to Site- Unit 3

125 Main Transformers Ready to Ship- Unit 3

126 Spent Fuel Storage Rack - Shipment of Last Rack Module- Unit 3

127 Start electrical cable pulling in Unit 2 Auxiliary Building

128 Complete Unit 2 Reactor Coolant System cold hydro

129 Activate class lE DC power in Unit 2 Auxiliary Building

130 Complete Unit 2 hot functional test

131 Install Unit 3 ring 3 for containment vessel

132 load Unit 2 nuclear fuel

133 Unit 2 Substantial Completion

134 Set Unit 3 Reactor Vessel

135 Set Unit 3 Steam Generator #2

136 Set Unit 3 Pressurizer Vessel

137 Complete welding of Unit 3 Passive Residual Heat Removal System piping

138 Set Unit 3 polar crane 139 Start Unit 3 Shield Building roof slab rebar placement

140 Start Unit 3 Auxiliary Building electrical cable pulling

141 Activate Unit 3 Auxiliary Building class lE DC power

142 Complete Unit 3 Reactor Coolant System cold hydro 143 Complete Unit 3 hot functional test

144 Complete Unit 3 nuclear fuel load

145 Begin Unit 3 full power operation

146 Unit 3 Substantial Completion


Order No. 201~61 Date

Complete

8/23/2016 Complete

Complete

Complete 12 31 2015

Complete

8/9/2016

Complete

10/30/2015

5/30/2016 Complete

10/10/2016

Complete Complete

Complete

8/23/2016

1/31/2017

12/31/2016

Complete

1/16/2017

1/30/2016

3/27/2016

12/19/2016

4/30/2017

Complete

Complete

11/29/2016

2/19/2018

6/22/2017

5/23/2018

2/27/2017

12/21/2018

6/19/2019 5/26/2017 9/22/2017 11/27/2017 1/29/2018

12/18/2017 5/11/2018

6/23/2017 3/13/2018 2/26/2019 5/26/2019

12/19/2019

5/20/2020 6/16/2020


Complete

2/15/2017 Complete

Complete

Complete 6/30/2016

Complete 9/2/2016

Complete

6/30/2016

2/28/2017 Complete

11/17/2016

Complete Complete

Complete

5/11/2017 7/1/2017

8/11/2017

Complete

5/19/2017

10/30/2016

5/15/2017

6/28/2017

9/1/2017

Complete

Complete

10/6/2016

8/16/2018

11/1/2017 11/17/2018

11/29/2017

5/10/2019

8/31/2019 12/14/2017 2/21/2018 3/30/2018 4/11/2018

5/24/2018 7/7/2019

5/18/2017 9/21/2018 8/15/2019 11/11/2019

3/11/2020

7/12/2020 8/31/2020

Unit

Unit2

Unit2

Unit 2

Unit3

Unit2

Unit2

Unit 2

Unit 3

Unit 3

Unit 2

Unit3

Unit3

Unit2

Unit3

Unit 2

Unit2

Unit2

Unit2

Unit3

Unit 2

Unit2

Unit3

Unit3

Unit3 Unit3

Unit 3 Unit3 Unit 3 Unit3

Unit3 Unit3

Unit3

Unit3 Unit 3


Exhibit 1

Page 3 of 3

Tra cia rrp ID Order No. 2015-661 DescnplionOrder No

201SGBI DateReused

Completion Date Un t

100101102

103104105

106107

108

109

110

112

113

115

116117

118

119

120

121

122

123

124

125

126127

128

129

130

131

132

133134135

136137

138139

140141142143

144145146

Deliver Reactor Vessel Internals to Port of Export- Unit 2

Set Unit 2 Containment Vessel ¹3

Turbine Generator Fabricator Notice to Contractor Turbirre Generator Ready to Ship -Unit 2

P I Fbr trNt t Cnt t fStf tmCo plat fHyd t t-Uit3P I 0 n -Shipm ntMEqwpm tt St -unt2Receive Unit 2 Reactor Vessel one te from fabricator

St G to F bi t rh ti t C ntmmorofC pl ti f2 dCh IH dt Tub h tA blyW idlng-Unit3Reactor Coolant Pump Fabricator Notice to Contractor of Final Stator Assembly Completion- Unit 3

Reactor Coolant Pump -Shipment of Equipment to Site (2 Reactor Coolant Pumpsf - Unit 2

Placefirstnuclear oncreteforunit35 LU it 251 G

Main Transformers Ready to Ship- Unit 2

Complete Un t 3 Steam Gener tor Hydrotest t fabricatorSetunit7.ContainmentVesselBottomHeadonb sematlegs5 t Unit 2Pr uHt V

ReactorcooiantpumpFabdcatorNodcetoc4ntractorofsadsfactorycompledonofFamoryAcceptan eT st-Urit3Deliver Reactor Vessel Internals to Port of Export- Unit 3

Main Transformers Fabrtcator Issue PD for Material - Unit 3

Complete eldirrgof Unlt 2 Passive ResidualHe tRemoml System pipmgSt 6 t -O t t A pt fEq p nttPN fstm-UmtsRefueling Machine -Shipment of Equipment to Site -Unit 3

Set Unit 2 Polar Crane

Reactor Coolant Pumps -Shipment of Equipment to Site - Unit 3

Spent Fuel Storage Rack-Shipment of Last Rack Module- Unit 3Start electncal cable pulling in Unit 2 Auxrliary Budding

Co plate unit2 ReactorCoolantsyste mid hyd

Activate class 1E DC power in Unit 2 Auxili ry BuildingComplete Unit 2 hot functional testInstall Unit 3 nng 3 for conte mm ant vessel

Unit 2 Substantial CompletionSet Unit 3 Reactor Vessel5 IU it351 6 I ¹2Set Un t 3 Pressurizer VesselComplete welding of Unit 3 Passive Residual Heat Removal System piping

Set Unit 3 polar craneStart Unit 3 Shield Building roof slab rebar placementStart Unit 3 Auxiliary Building electrics I cable pullingActwate Unit 3 Auxiliary Building class 1E DC powerComplete Unit 3 Reactor Coolant System cold hydroComplete Unit 3 hot functional testComplete Unit 3 nuclear fuel load

Begin Unit 3 fog power operationUn t 3 Substant at Completion

Complete8/23/2016Corrlplata

C pitComplete

12 31 2015

Complete8/9/2016

Complete

10/30/20155/30/2016Co pl t

10/10/2016C mpl tC mpleteC pit8/23/20161/31/201712/31/2016Complete

1/16/20171/30/2016

3/27/201612/19/2016

4/30/2017Complete

C pl t11/29/20162/19/2018

6/22/20175/23/20182/27/201712/21/20186/19/20195/26/20179/22/201711/27/20171/29/201812/18/20175/11/20186/23/20173/13/20182/26/20195/26/201912/19/20195/20/20206/16/2020

c mplm2/15/2017Co pitC pitCorltpl t6/30/2016Complete9/2/2016Complete6/30/20162/28/2017C pit

11/17/2016CompleteDmpl tCo pl te5/11/20177/1/20178/11/2017Complete5/19/201710/30/2016

5/15/20176/28/20179/1/2017Complete

C mplete10/6/20168/16/2018

11/1/201711/17/201811/29/20175/10/20198/31/201912/14/20172/21/20183/30/20184/11/20185/24/20187/7/20195/18/20179/21/20188/15/201911/11/20193/11/20207/12/20208/31/2020

Unt2

untrz

Unit 2

U it3U R2

U t2

Unit 2

Urtrt 3

Urlrt 3

Unit 2

Ur It 3

U R3unrzU it3

Unt2U 12

unit Z

Umt 2

Ul it 3

Unit 2

Unit 2

Unit 3

Unit 3

Unit 3U 13

0 R3U it3Unit 3U 83Unit 3UnitsUn t 3

Unt3Umt 3

South Carolina Electnc 6 Gas Company

C O N S T R U C T I O N E X P E N D I T U R E S

( T h o u s a n d s o f $ )

V . C . S u m m e r U n i t s 2 a n d 3 - S u m m a r y o f S C E & G C a p i t a l C o s t C o m p o n e n t s

A c t u a l t h r o u g h M a r c h 2 0 1 6 * p l u s

P r o j e c t e d

Actual

Plant Cost Categories Total 2007 2008 2009 2010 I!!1.1 2012 2013 2014 2015 I Fixed with No Adjustment 3,682,407 4,628 35,199 22,066 67,394 50,551 66,057 22,960 11,634 366,348 Finn with Fixed Adjustment A 266,750 63,250 27,500 24,200 75,075 42,900 7,700 26,125 Finn with Fixed Adjustment 8 238,868 5,499 35,768 49,513 39,371 45,043 31,048 22,834 9,791 Finn with Indexed Adjustment 873,741 45,869 148,713 115,172 137,871 118,769 150,530 129,994 26.822 Actual Craft Wages 133,306 312 1,937 9,779 11,682 21,091 25,217 38,785 24,503 Non-Labor Costs 406,936 1,271 31,255 79,778 9,298 65,227 70,154 105,390 44,564 Time & Materials 60,816 1,013 155 1,004 764 1,878 2,300 4,055 2,048 Owners Costs 828,196 17,096 8,198 15,206 23,743 29,276 43,643 47,245 51,807 56,885 Transmission Costs 333,781 26 724 927 11,964 51,677 56,593 46,439 44,401

Total Base Project Costs(2007 $) 6,824,801 21,723 97,386 319,073 374,810 314.977 488,461 448,947 418,639 601,486

Total Project Escalation 531,496 3,519 20,930 23,741 34,084 74,485 88,622 93,326 54.891

I Total Revised Project Cash Flow 7,356,296 21,723 100,905 340,003 398,551 349,061 562,946 537,569 511,965 656,378

Cumulative Project Cash Flow(Revised) 21,723 122,629 462,632 861,183 1,210,244 1,773, 190 2,310,759 2,822,724 3,479,101

AFUDC(Capitalized Interest) 322,365 645 3,497 10,564 17,150 14,218 18,941 27,722 26,131 22.202

Gross Construction 7,678,661 22,368 104,403 350,567 415,701 363,278 581,886 565,291 538,096 678,580

Construction Work in Progress 22,368 126,771 477,338 893,039 1,256,317 1,838,203 2,403,495 2,941.590 3,620.170

•Applicable index escalation rates for 2016 are estimated. Escalation is subject to restatement when actual indices for 2016 are final.

Notes: Current Period AFUDC rate applied I 5.82:fl

Escalation r.1tes vary from reporting period to reporting period according to the terms of Commission Order 2009-104(A). These projections reflect current esc3lation rates. Future ch3nges in e:scal3tion rates could substatially change these projections. The AFUDC rate applied is the current SCE&G rate. AFUDC rates can vary with changes in market interest rates, SCE&G's embedded cost of capital, capitalization ratios, construction work in process, and SCE&G's short..tenn debt outstanding.

Pro·ected

2016 2017 2018 2019 2020 756,148 1,124,943 771,249 321,164 62,067

0 (0)

6,761 9,413 24,329 6,686 410 112,546 126,257 127,821 106,102 62,372 58,990 48,860 13,180

934,445 1,309,473 936,579 433,952 124,849

21,636 33,205 43,409 25,071 14,576

956,081 1.342,678 979,988 459,023 139,425J

4,435,182 5,777,860 6,757,849 7,216,871 7,356,296

33,869 61,224 53,994 23.345 8,863

989,950 1,403,902 1,033,982 482,367 148,288

4,610,121 6,014,023 7,048,005 7,530,373 7,678,661

Exhibit 2

RESTATED and UPDATED CONSTRUCT(ON EXPENDITURES(Thousands of 8)

V.C. Summer Units 2 and 3- Summary of SCE&G Capital Cost Components

Actual through March 20( 6* plusPro ected

Plant Cost CategoriesRbd thN Adl*t t

R thR edAdj stmentARhm ithRmdAdj *tm ntsR dhl d dAdj *tAm I C tlw 9Nona.ab ro *tTi ltm t0 m Ce*t

Total3,682,4D7

266,750238,868873,741133,306406,938

60,816828,196333,781

20D74,628

17,D96

200835,199

5 49945.869

3121,2711,0138,198

26

200922,06663,25035,768

148,71 31,937

31,255155

15,206724

201067,39427,50049,513

115,1729.779

79,778I,DD4

23,743927

A t

201150,55124,20D39.371

137,87111.682

9,298764

29,27611,964

201266,05775,07545,D43

118,76921,09165,227

1,87843,64351,677

201322,96042,90031,D48

150,53025.21 77D,154

2,3DD

47,24556,593

201411,6347,700

22.834120 99438,785

105,3904,055

51,80746,439

2015366,348

26,1259,791

26,82224,50344,564

2,D48se.ss544,401

2016756,148

00

(0)6,761

112,54658,990

20171,124,943

9,41 3126.25748,860

2018771,249

24,329127.821

13,180

2019321,164

6,686108,502

202062,067

41062,372

Total Base project Costs(2D07 3)

Total Project Escalation

6,824,801

531,496

21,723 97,386 319,073

3,519 20,930

374,810

23,741

314.977

34,084

488,461

74,485

ml8,947

88,622

418,639

93,326

601,486

54,891

934,445

21,636

1,309,473

33,205

936,579

43,409

433,952

25,071

124,849

14,576

Total Revised Pro act Cash Flow 7,356,296 21,723 100.905 340,003 398 551 349,061 562 946 537,569 511 965 656 378 956.081 1,342 678 979,988 459.023 139.425

Cumulative Project Cash Flow(aemaedj

AFUDC(Capitalized Interest)

Gross Construction

Construction Work in Progress

21,723 122,629 462,632 8613183 1.210.244 1,773.190 2,310,759 2,822,724 3,479,101 4,435,182 5,777,86D 6,757,849 7,216,871 7,356.296

322.365 645 3,497 10,564 17,150

7,678,661 22,368 104,403 35D,567 415,701

14,21 8

363,278

18,941 27,722 26,131 22,202 33,869

581,886 565,291 538,096 678,580 989,95D

61.224 53,994 23,345 8,863

1,403,902 1,033,982 482,367 149,288

22,368 126,771 477,338 893,039 1,256,317 1,838,203 2,403,495 2,941,590 3,620,170 4,61D,121 6,014,023 T,D49,005 7,530,373 7,678,661

'Appl bl d ht m *I 5515 b t d.E It blent t I t h em liCh *I Zelg I

N

0 tp 'AFUDC t ppa d 5.55'4

p m gp nmt p d gp ' m't tb 5 tc '** om zgeb-154(A).Ib* Pram Ilm \ Im I .Ft u 9 'm I Id btthsru g th* p jmrb AFUDD t ppl d a ~ tacEao t AFUDD I m dh h g I mmht em to *,9CErc'md d *tm Pit I, Pd I t emhh *t m d P *, daCE4ch h n4 debt t* 4 S.

S C P S C O r d e r 2015-661

( T h o u s a n d s o f $ )

V.C. S u m m e r U n i t s 2 a n d 3 - S u m m a r y o f S C E & G C a p i t a l C o s t C o m p o n e n t s

A c t u a l t h r o u g h M a r c h 2016 * p l u s

P r o i e c t e d

P l a n t C o s t C a t e g o r i e s T o t a l 2007 2008 2009 2010 Fixed with No Adjustment 3,426,890 - - -Finn with Fixed Adjustment A - - - -Firm with Fixed Adjustment 8 (165,068) - - -Firm with Indexed Adjustment (672,257) - - -Actual Craft Wages (465,907) - - -Non-Labor Costs (545,626) - - -Time & Materials (24,966) - -Owners Costs 20,827 - - -Transmission Costs 4,269 - -

Total Base Project Costs(2007 $) 1,578.162 - --

Total Project Escalation (768,990) - -

I Total Revised Project Cash Flow 809,172 - - -

Cumulative Project Cash Flow(Revised)

AFUDC(Capitalized Interest) 42,575

Gross Construction 851 ,747


•Applicable index escalation rates for 2016 3re estimated. Escalation is subject to resbtcment when actual indices for 2016 are final. These projections reflect current escalation rates. Future changes in escalation rates could substatially change these projections.

-----

----

Actual

2011 2012 2013 - - -- - -- - -- - -- - -

- ---

- - -- -

- - -

- - -

2014 ----

(633) (1.797)

(76) (163) (768)

(3,437)

3,436

(1)

(1)

(1)

(1)

Pro·ected

2015 2016 2017 2018 2019 2020 336,383 735,214 1,11 5,343 771 ,193 363,927 104,830

- - - - -(40,412) (45,095) (26,827) (27,858) (19,537) (5,339)

(213,569) (197,013) (138,958) (44,043) (51,832) (26,842) (58,627) (127,343) (161,221 ) (95,431) (22,652) -(88,423) (171,543) (165,087) (95,771) (22,781) (223) (17,418) (19,531) (8,161) 15,844 4,302 274 (39,251) 6,249 16,891 10,558 12,685 13,860 (20,175) (5,804) 18,546 12,470 - -

(141,493) 175,134 650,526 546,762 264,112 86,560

(141 ,803) (226,290) (207,107) (108,138) (67,600) (21,489)

(283,296 (51 ,156) 443,418 438,623 196,512 65,071 I

(283,297) (334,453) 108,965 547,589 744.101 809,172

(8,299) (1 0,556) 21 ,341 23,009 11 ,816 5,265

(291 ,596) (61 ,712) 484,759 461 ,633 208,328 70,336

(291 ,597) (353,309) 111,450 573,083 781,411 851,747

Exhibit 3

Chan e from SCPSC Order 2016-661

(Thousands of 3)

V.C. Summer Units 2 and 3 - Summary of SCE&G Capital Cost Components

Actual through March 2016* plusPro ected

Plant Cost CategoriesR d ith N Adi *t I

Rnn ahRmdAdj *bnbntAR IhR dAdj *t tsR thl d dAdj *t tam ai evan wases

Ti hut0 nera ccats

Total3,426,890

(tss,oss)(672,251)(465,907)(545,626)

(24,966)2D,827

4,289

2007 2008 2009 2010A I

2011 2012 2013 2014

(633)(1,797)

(76)(163)(76 8)

2015336,383

(40.412)(213,569)

(58,627)(88.423)tl 7,41 8)(39,251)(20,175)

2016735,214

(45,095)t197,01 3)(127,343)(171,543)(19,531)

6,249(5.804)

20171,115,343

(26.827)(I 36,958)(161.221)(165,D87)

(8,161)16,89118,546

P

2018771,193

(27,858)(44,043)(95,431)(95,771)15,64410,55812,470

2019363.921

(19,537)(51.832)(22,652)(22,781)

4.30212,685

2020104.830

(5,339)(26.842)

(223)274

13,860

Total Base projem Casts(2007 Sl

Total Project Escalation

1,578,162

(768,9901

t3,437l (141,493l 175,134 650,526 546,762 264,112

3.436 (141,8D3) (226.290) (207,107) (108,138) (67,6M) (21,489)

Total Revised Pro ect Cash Flow 809,172 I 283 296 51 156 443 418 438,623 196 512 65,071

Cumulahve Project Cash Flow(Revised)

AFUDC(Capitalized Interest)

Gross Construction


42,575

851.741

(I) (283,297l (334,453) ID8.965 547,589 7461DI 809,172

8 299 (10 556 21 341 23 009 11 816 5 265

(ll (291,596) t61,712) 464.759 461,633 208,328 70,338

(I) (291,597) (353.309) 111,450 573,083 781,411 851,747

'Apse bl id *Mb t*i Zeta b I*4.5*4m I biut tt t b u lid *I Zble b ITb* pm~ Ilo t * Iti I .Ft d e*i It I Id*b*ttilfrd 9 tb* p I b

RECONCILIATION TO ORDER No. 2015-661 AND BLRA INDICES COMPARISON

RECONCILIATION TO ORDER No. 2015-661 (Thousands of $)

Revised Forecast Current Filing $ 7,678,661 Forecast Order No. 2015-661 $ 6,826,914

Change $ 851,747

Reconciliation: Change in Base Project Costs(2007 $) $ 1,578,162 Change in Project Escalation $ (768,990) Change in AFUDC $ 42,575

Net $ 851,747

BLRA ESCALATION INDICES COMPARISON

BLRA Indices Order No. 2015-661 Jan 2016 Update Escalation Rates Escalation Rates

HW All Steam Index: One Year Rate 2.52% 2.58% Five Year Average 3.21% 2.79% Ten Year Average 4.35% 3.76% HW All Steam/Nuclear Index: One Year Rate 2.52% 2.75% Five Year Average 3.21% 2.86% Ten Year Average 4.38% 3.80% HW All Transmission Plant Index: One Year Rate 1.68% 1.48% Five Year Average 2.63% 1.89% Ten Year Average 4.05% 3.11% GOP Chained Price Index: One Year Rate 1.55% 1.00% Five Year Average 1.55% 1.64%

Exhibit 4

RECONCILIATION TO ORDER No. 2015-661 AND BLRA INDICES COMPARISON

RECONCILIATION TO ORDER No. 2015-661 Thousands of

Revised Forecast Current FilingForecast Order No. 2015-661

Change

$ 7,678,661$ 6,826,914

$ 851,747

Reconciliation:Change in Base Project Costs(2007 $ )

Change in Project EscalationChange in AFUDC

Net

$ 1,578,162$ (768,990)$ 42,575$ 851,747

BLRA ESCALATION INDICES COMPARISON

BLRA Indices

HW All Steam Index:One Year RateFive Year Avera eTen Year Avera eHW All Steam/Nuclear Index:One Year RateFive Year Avera eTen Year Avera eHW All Transmission Plant Index:One Year RateFive Year Avera eTen Year Avera eGDP Chained Price Index:One Year RateFive Year Avera e

Order No. 2015-661Escalation Rates

2.52%3.21%4.35%

2 52%3 21%4 38%

1.68%2 63%4.05%

1 55%1 55%

Jan 2016 U dateEscalation Rates

2.58%2.79%3 76%

2 75%2.86%3.80%

1.48%1 89%3 11%

1.00%1.64%

T H E P U B L I C S E R V I C E C O M M I S S I O N OF

S O U T H C A R O L I N A

D O C K E T N O . 2 0 1 6 - -E

INRE:

Petition of South Carolina Electric & Gas ) Company for Updates and Revisions to ) Schedules Related to the Construction of a ) Nuclear Base Load Generation Facility at Jenkinsville, South Carolina

) )

CERTIFICATE OF SERVICE

This is the cetiify that I have caused to be served this day one (1) copy of South

Carolina Electric & Gas Company's Petition for Updates and Revisions to Schedules

Related to the Construction of a Nuclear Base Load Generation Facility at

Jenkinsville, South Carolina to the persons named below at the addresses set fmih via

electronic mail and U.S. First-Class Mail:

C. Dukes Scott, Director Office of Regulatory Staff

1401 Main Street, Suite 900 Columbia, SC 29201

[email protected]. gov

Nanette S. Edwards, Esquire Office of Regulatory Staff


[email protected]. gov

Jeffi:ey M. Nelson, Esquire Office of Regulatory Staff


jnelson@regstaff. sc. gov

1

BEFORE

THK PUBLIC SERVICE COMMISSION OF

SOUTH CAROLINA

DOCKET NO. 2016- -E

Petition of South Carolina Electric k GasCompany for Updates and Revisions toSchedules Related to the Construction of aNuclear Base Load Generation Facility atJenkinsville, South Carolina

))) CERTIFICATE) OF SERVICE)

This is the certify that I have caused to be served this day one (1) copy of South

Carolina Electric tk Gas Company's Petition for Updates and Revisions to Schedules

Related to the Construction of a Nuclear Base Load Generation Facility at

Jenkinsville, South Carolina to the persons named below at the addresses set forth via

electronic mail and U.S. First-Class Mail:

C. Dukes Scott, DirectorOffice of Regulatory Staff

1401 Main Street, Suite 900Columbia, SC 29201

Nanette S. Edwards, EsquireOffice of Regulatory Staff


Jeffrey M. Nelson, EsquireOffice of Regulatory Staff


2 0 1 6

S h a n n o n B o w y e r H u d s o n , E s q u i r e

O f f i c e o f R e g u l a t o r y S t a f f

1401 M a i n S t r e e t , S u i t e 900

C o l u m b i a , S C 29201

s h u d s o n @ r e g s t a f f . s c . gov

M. A n t h o n y J a m e s



C o l u m b i a , SC 29201

m a j a m e s @ r e g s t a f f . s c . g o v

D a w n H i p p



C o l u m b i a , SC 29201

d h i p p @ r e g s t a f f . s c . g o v

2

Shannon Bowyer Hudson, EsquireOffice of Regulatory Staff


M. Anthony JamesOffice of Regulatory Staff


Dawn HippOffice of Regulatory Staff


Cayce, South Carolina

This 26th day ofMay 2016

DOCKETING INFORMATION H

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