Westinghouse to pay $21M for failed nuke reactors

$5 million to go to low-income ratepayers it injured

Posted 9/9/21

Westinghouse Electric’s troubles appear far from over.

But a new $21.25 million agreement may help those its failed nuclear project hurt most — low-income electricity ratepayers.

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Westinghouse to pay $21M for failed nuke reactors

$5 million to go to low-income ratepayers it injured

Posted

Westinghouse Electric’s troubles appear far from over.

But a new $21.25 million agreement may help those its failed nuclear project hurt most — low-income electricity ratepayers.

Westinghouse will pay $5 million in 30 days to the SC Low-Income Home Energy Assistance Program to help ratepayers injured by higher electricity rates due to the failure. Many of those ratepayers live in Lexington County.

A final payment of $16.25 million would be paid on or before July 1, 2022.

The giant nuclear contractor has survived the $10 billion failed reactor project here, bankruptcy court and the arrest of 2 of its executives on fraud charges.

SC Electric & Gas CEO Kevin Marsh and COO Stephen Byrne have pleaded guilty to criminal fraud charges and face prison time.

No one at taxpayer-owned Santee Cooper has been charged.

Acting US Attorney Rhett DeHart said Westinghouse is helping the investigation of criminal misconduct.

Under Westinghouse management, the SC E&Gas-Santee Cooper project was years behind schedule and millions of dollars over budget when it was abandoned.

DeHart said Westinghouse agreed to cooperate fully with the criminal investigation until the conclusion of all criminal prosecutions involving former Westinghouse officials.

Federal charges are pending against 2 former Westinghouse executives, project manager Carl Churchman and Senior Vice President Jeffrey Benjamin.

Benjamin will be arraigned in federal court this week.

Westinghouse officials have:

• Given more than 3 million pages of documents, data and mail to federal investigators.

• Made employee witnesses available.

• Provided extensive debriefings on facts developed in its own internal investigation.

Westinghouse’s new owners, Brookfield Business Partners, has since removed, reassigned or re-trained senior management.

It has also elected new directors; restructured and retrained its financial managers,established global financial controls and an ethics code, elected an independent audit committee and established a corporate controller.

A new whistleblower program lets employees raise concerns without fear of retaliation.

Westinghouse and its former Japanese owners Toshiba has paid $2.168 billion related to the failed nuclear project.

That includes $1.032 billion to SCANA, $976 million to Santee Cooper and $160 million to pay contractor liens.

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