According to a press release, the company’s board has voted for dropping work to permit the $2.2 billion Pee Dee Energy Campus, the prospect of increased costs from federal carbon regulation, lower future power purchases from Santee Cooper’s largest customer and citing falling overall electric demand.
Coal-fired power plants are the major single contributor of carbon emissions. The project was opposed by environmentalists and South Carolina Governor Mark Sanford, citing high costs and emissions of CO2.
Santee Cooper spokeswoman of Laura Varn said that there is a chance that the project would be revived after its suspension are remote, “we want to leave that option open.” If there are other developments related to Santee Cooper’s plan to construct a new nuclear plant with Scana (SCG.N), or a change in Central Electric’s future power procurement plan.
The agency stated that during 2008, the Pee Dee Energy Campus obtained an air permit from South Carolina regulators and was seeking federal permits.
Till now the company has invested $242m, mostly to purchase equipment, which Varn stated that the agency would expect to recoup if the Pee Dee plant is scrapped.
Thompson, said: “We are acting today in the best interests of our customers, our bondholders and the state”. The decision could save money of the company’s customers by avoiding the capital outlay for construction, he added.
Carter, stated that: “The cost of the technology and the carbon tax are unknown and expected to be high and this uncertainty causes great concern for Santee Cooper in considering future coal plants.”
Central Electric revealed that it plans to cut its power purchases from Santee Cooper by approximately 1,000MW by 2019.
