Failed nuclear project probed
CRANBERRY TWP — The South Carolina House of Representatives is asking Westinghouse Electric officials to testify about a failed nuclear project in the state.
In a letter sent to the company, representatives call officials from Cranberry Township-based Westinghouse to Columbia, S.C., for a hearing March 21 about the company's role in the failed V.C. Summer Nuclear Station project.
Westinghouse was the lead contractor on the $9 billion project, which was abandoned in July 2017.
The prompt came in the form of a letter drafted by the South Carolina House's Utility Ratepayer Protection Committee, which has been tasked with investigating the failed project. The letter, signed by Rep. Russell Ott, committee chairman, and Rep. Peter McCoy Jr., committee member, demands Westinghouse attend the hearing and that the company supply the committee with its full project file, including “any and all documents and records related to the procurement, design, engineering, construction, and abandonment of the project, and all contracts or agreements related to or addressing the project.”
The letter ends by warning Westinghouse that failure to comply with its directives could result in the committee moving to hold the company in contempt.
Westinghouse spokesman Sarah Cassella said Tuesday that the company received the letter and is reviewing the request.
The cancellation of the South Carolina project resulted in Westinghouse filing for Chapter 11 bankruptcy in March 2017. Company officials also cited difficulties with a similar project in Georgia as a reason for lost revenue. That project is still in the construction process.
The combination of the cancellation and bankruptcy led the company to cut 1,500 employees companywide. The cuts, expected to be completed in March, accounted for about 7 percent of the company's employees.
Westinghouse employs around 2,200 people in Cranberry Township and about 3,400 in Western Pennsylvania.
The bankruptcy case was followed by the January announcement that Westinghouse, which was acquired in 2006 by Japanese electronics manufacturer Toshiba for $5.4 billion, will be purchased by Brookfield Business Partners LP for $4.6 billion, pending approval.
The acquisition includes all global business of Westinghouse as well as its affiliated debtors and debtors-in-possession. Brookfield would also take ownership of certain pension, environmental and other operating obligations.
The transaction is expected to be completed by the third quarter of 2018, though no information has been revealed since the announcement.
