South Carolina’s long-dormant nuclear power facilities may be set for a remarkable revival, as a private firm has tabled a proposal to pay $2.7 billion to the state-affiliated utility, Santee Cooper. The ambitious deal, if finalised, would also grant the company access to a portion of the electricity generated by the plants. While discussions are still in their early stages, negotiations between Santee Cooper and Brookfield Asset Management could extend over the next two years, during which all operational and financial details will be carefully examined.
Under the proposed terms, Brookfield would retain at least 75% of the electricity produced, allowing them the flexibility to sell it to high-demand clients such as major data centres. The share that Santee Cooper would receive depends on Brookfield’s expenditure to bring two reactors back online. Both parties would retain the right to withdraw from the agreement, though Brookfield has already agreed to cover the costs of ongoing negotiations and the remaining project expenses.
Santee Cooper had been a minor partner in the previously failed V.C. Summer nuclear project, which sought to construct two new reactors but ultimately collapsed. The venture saw combined investments exceeding $9 billion from the state and South Carolina Electric & Gas, the private utility partner.
Due to natural wear and age, nearly half of the built reactor structures, including concrete and steel towers, have fallen into severe disrepair. Adjacent to these abandoned units remains a functioning reactor that has been in operation since 1984.
The project’s failure resulted in criminal consequences for four executives, some of whom served time in prison or under home confinement, while regulators, shareholders, and consumers suffered financial losses from misleading information. At the time, state law permitted the recovery of project costs from consumers before any electricity was produced, leaving taxpayers and utility customers to shoulder the financial burden.
At a board meeting on Monday, Santee Cooper CEO Jimmy Staton stated, “Since 2017, our customers have been paying for these assets. Now is the moment for them to receive tangible benefits.” If the $2.7 billion proposal proceeds, much of Santee Cooper’s outstanding debt could be substantially reduced.
The United States is experiencing rising electricity demand, partly driven by a surge in data centres, but substantial challenges remain before the project can be restarted. Equipment and structures exposed to eight years of open-air conditions must be evaluated for reuse, and new construction permits and operational licences will likely be required. Brookfield’s proposed reactor design, while proven, is costly; similar reactors in Georgia required over $17 billion to complete by 2023.