SCANA (SCG) Unit, Shaw (SHAW) Enter Nuclear Unit Construction Cost Agreements

SCANA subsidiary (NYSE: SCG) South Carolina Electric & Gas Company (SCE&G), Westinghouse Electric Company, and The Shaw Group Inc. (Nasdaq: SHAW) have signed a preliminary agreement related to costs for construction of the company's new nuclear units. These challenged costs primarily relate to delays in receipt of the combined construction and operating license from the Nuclear Regulatory Commission, rock conditions at the site, design of structural modules and design of the shield building. SCE&G's portion of these costs will be $138 million, $50 million less than the upper bound of $188 million originally disclosed.

After considering the impact of this preliminary agreement, along with current escalation rates, the projected cost of the project continues to be lower than the original cost projection approved by the Public Service Commission of South Carolina (SCPSC) in 2009. SCE&G will seek to update its capital cost schedule with the SCPSC to reflect the impact of this preliminary agreement at the appropriate time.

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