Lawsuit Wants All VC Summer Money Returned to Customers

The suit says SCE&G and SanteeCooper knew about problems with the project for years and continued to mis-represent details to the public service commission. The suit alleges waste...Negligence and fraud.....and asks for the court to freeze more than 2 bi

Winnsboro, SC (WLTX) - A group of people have filed a class action lawsuit against SCE&G, asking that all profits on the busted deal to build two nuclear reactors be given back to customers.

The suit, filed by 10 SCE&G customers in Winnsboro represented by the Bell Legal Group, wants to freeze the $2.2 billion the company is getting as part of a settlement with Toshiba, as well as all profits made on the construction project. 

They're asking a judge to then turn the money over the ratepayers who funded the work that ultimately went nowhere.

Back on July 31, Santee Cooper announced they were walking away from the multi-billion dollar project to build two new nuclear reactors at VC Summer Nuclear Station, to go along with the one that already exists there. Hours later, SCE&G said they would abandon the project as well.

Santee Cooper had a 45 percent stake in the project, while SCE&G owned the rest. Their decision led to 5,600 losing their jobs. 

Both companies blame much of the construction problem on Westinghouse, the company contracted to build the reactors, saying the company mismanaged the project and ran over schedule and over budget. State lawmakers have launched a probe to get to the bottom of what went wrong. 

Westinghouse has since gone into bankruptcy. Toshiba, which owns Westinghouse, reached a $2.2 billion settlement with SCE&G and Santee Cooper over the project failures.

But the suit seeks to stop that payment, saying the SCE&G knew or should have known the project was headed toward failure, and didn't give the project proper oversight. 

Under a law passed in 2007, SCE&G was allowed to collect funds before the project was completed, and the suit claims both companies kept the project going so they could continue to bring in profits. 

Two other class action lawsuits have also been filed in relation to the project's failure. 

Class Action Lawsuit VC Summer 8 28 17 by WLTX on Scribd

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