Judge OKs distribution for $192M nuclear project settlement

COLUMBIA, S.C. (AP) — Investors who lost fortunes in the failure of a multi billion-dollar nuclear reactor construction deal in South Carolina will soon begin to see their portions of a $192 million settlement, under a recently approved distribution.

Last week, a federal judge signed off on a plan to disperse the funds among former shareholders in SCANA Corp., the former parent company of South Carolina Electric & Gas. The settlement itself was the largest securities class action recovery obtained in South Carolina when a judge approved it last year, according to attorneys for the investors.

The utility company became embroiled in controversy after announcing in summer 2017 that it was shuttering a nuclear reactor construction project at the V.C. Summer Nuclear Station in Jenkinsville, about 30 miles (48 kilometers) north of Columbia, following the bankruptcy of lead contractor Westinghouse.

Up to that point, SCANA and state-owned utility Santee Cooper, a minority partner in the project, had spent nearly $10 billion on it. The failure cost ratepayers and investors billions and left nearly 6,000 people jobless.

The abandonment spawned multiple lawsuits, some by ratepayers claiming company executives knew the project was doomed and misled consumers as well as regulators as they petitioned for a series of rate increases. State and federal authorities launched investigations, which have led to guilty pleas from two top-level SCANA executives.

More than 737,000 SCE&G customers had already paid more than $2 billion toward the project, which never generated any power. Customers did ultimately see retroactive credits applied to bills after lawmakers passed a temporary rate cut that knocked about $25 a month off the average residential customer’s bill.

SCANA shareholders accused the company of assuring them the...