A federal grand jury investigation of SCANA’s failed nuclear project could have been abandoned.

But regulators’ change in their ruling could have given the investigation new life.

The grand jury has been investigating possible criminal violations involving the failed nuclear project, sources told The State newspaper more than 16 months ago.

Federal agents were looking into whether SCANA’s top executives – then CEO Kevin Marsh and his successor Jimmy Addison – failed to reveal “material” information about the failing project to investors and if it constitutes fraud or general securities violations.

Since then nothing has happened. Sources have told the Chronicle the grand jury probably waited to see if the Public Service Commission would rule that SCANA executives violated federal securities laws.

SCANA executives and their Santee Cooper partners admitted they had received subpoenas from the US Attorney’s Office in 2017.

The grand jury wanted documents that might explain why the 2 utilities abandoned the project after taking more than $2 billion from their ratepayers.

“I am told the FBI was sitting in or watching on live stream the 3-week PSC hearing for the purpose of its investigation,” SC Small Business Chamber CEO Frank Knapp Jr., said.

The subpoenas indicate federal investigators are interested in whether investors were misled about the project’s years of delays, escalating costs and eventual expensive abandonment.

The day the PSC was to announce its ruling if SCANA acted imprudently, the federal investigation came up as one justification for not finding the executives guilty of imprudence.

PSC Commissioner Elliott Elam of Lexington cautioned against an imprudent ruling.

“I don’t know if that crosses over a little bit into a criminal element that some of these executives may be facing,” Elam was quoted as saying. “I just don’t know that it is necessary.

“I will say, yes, I believe we had information withheld from us. I think everybody has said that. As far as intent, I don’t know that we necessarily have adequate information to establish that kind of intent.”

Elam voted against a ruling of imprudence which meant SCANA had been honest in its rate requests.

Later evidence showed that was not true.

Under pressure, the PSC reversed itself and ruled SCANA acted imprudently.

The potential criminal actions a federal grand jury could be investigating include whether SCANA deliberately understated its failures in legally required public filings, sources close to the probe said.

“My comments about the feds needing the PSC to find imprudent behavior were based on 3rd hand information,” Knapp said, “but it does make sense.

“How likely is a jury going to find fraudulent behavior if the state regulatory agency didn’t officially come to that conclusion?”