SCEG OATT Formula Transmission Rate Filing.pdf - SCANA ...

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Jimmy Addison
Docket ER 10- -000
Page 11 of19
Exhibit No. SCE-J
Base Load Review Act ("BLRA") for a certificate of environmental compatibility and
2 public convenience and necessity and for a base load review order for the two nuclear
3 units. Under the BLRA, the SCPSC conducted a review of the need for and prudency of
4 the proposed units, as well as the engineering, procurement and construction contract
5 under which the units will be built.
6 In March 2008, SCE&G and the South Carolina Public Service Authority filed an
7 application with the Nuclear Regulatory Commission ("NRC") for a combined
8 construction and operating license ("COL"). The COL application was reviewed for
9 completeness by the NRC and docketed on July 31, 2008. In September 2008 the NRC
10 issued a 30-month review schedule from the docketing date to the issuance of the safety
II evaluation report which would signify satisfactory completion of the NRC's review. Both
12 the environmental and safety reviews by the NRC are in progress and a COL should be
13 issued in mid- to late-20 II. This date would support both the project schedule and the
14 substantial completion dates for the two new units in 2016 and 2019, respectively.
15 SCE&G has begun development of the transmission facilities that are needed to move the
16 nuclear generation to market in a fashion that ensures continued reliable operation of
17 SCE&G's transmission system and all interconnected transmission systems. The planned
18 transmission facilities are estimated to cost $582 million (in escalated dollars). That
19 compares with total gross transmission plant investment today of $746 million. The
20 combined cost of the two planned nuclear units and associated transmission is
21 approximately $6.3 billion (in escalated dollars) which is 37% more than SCE&G's
22 current total company depreciated rate base of$4.6 billion (as of September 30, 2009).