FBI watching SCANA CEO’s PSC testimony

Will Addison’s words be used against him?

Jerry Bellune
Posted 11/22/18

Federal law enforcement is listening to what SCANA’s top brass tells the Public Service Commission.

This suggests the Lexington County-based executives may face criminal charges for …

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FBI watching SCANA CEO’s PSC testimony

Will Addison’s words be used against him?

Posted

Federal law enforcement is listening to what SCANA’s top brass tells the Public Service Commission.

This suggests the Lexington County-based executives may face criminal charges for mismanagement and deceit in SCANA’s $90 billion nuclear fiasco.

SCANA CEO Jimmy Addison has tried to explain why his people withheld a critical analysis and other damaging information from the public, its investors and 727,000 ratepayers.

As he did, representatives of the US Attorney’s office and the FBI sat a few feet away, the Charleston Post and Courier reported.

Assistant US Attorney James May sat near the back of the room as Addison was pressed about SCANA not sharing higher cost estimates in 2015.

An FBI agent took notes as Addison sidestepped questions and pled ignorance about the failed nuclear reactors, including a $1 million critical audit by Bechtel, one of the world’s largest construction and engineering firms that SCANA commissioned and paid for.

In front of these officials, attorneys opposing SCANA got Addison to admit details that could be used later in federal court. That included an admission that SCANA, SCE&G’s owners, withheld information about the project’s failures, the Post and Courier reported.

“You’re aware that anything that is taken down by this very capable court reporter could become evidence in an FBI investigation, and you understand that?” Scott Elliott, an attorney for industrial electric customers, asked Addison.

“Certainly,” Addison said.

“And it could become evidence in an SEC, Securities and Exchange Commission, investigation?” Elliott said.

“It could,” Addison said.

Addison was testifying before the PSC which will decide if SCE&G or its ratepayers will pay for the failed nuclear project and if they can sell the company to Dominion Energy.

Addison was SCANA’s chief financial officer during the nuclear fiasco.

SCANA accountants and engineers said the final cost could increase by $1.2 billion before the reactors produced any power.

Instead of disclosing that to the PSC, SCANA executives Addison and predecessor Kevin Marsh gave its Westinghouse contractors’s estimate of $700 million.

Addison acknowledged that the difference was “material,” an admission that could be used in civil and criminal investigations.

The SEC could bring a lawsuit if it finds SCANA didn’t reveal information so critical it could influence investor’s decisions to invest.

Addison repeatedly apologized to the commissioners but denied he personally did anything wrong.

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