Exhibit 99.01
PUBLIC VERSION
V. C. Summer Nuclear Station Units 2 & 3
Quarterly Report to the South Carolina Office of Regulatory Staff
Submitted by South Carolina Electric & Gas Company
Pursuant to Public Service Commission Order No. 2009-104(A)
Quarter Ending September 30, 2012
I. Introduction and Summary
A. Introduction
This quarterly report is submitted by South Carolina Electric & Gas Company (SCE&G or the Company) to the Public Service Commission of South Carolina (the Commission) and the South Carolina Office of Regulatory Staff (ORS). It is submitted in satisfaction of the requirements of S.C. Code Ann. § 58-33-277 (Supp. 2011) and the terms of Commission Order No. 2009-104(A). This report provides updated information concerning the status of the construction of V. C. Summer Nuclear Station (VCSNS) Units 2 & 3 (the Units) and updates the capital cost and construction schedules for the Units. The Commission approved updated construction schedules for the Units in Order No. 2010-12. The Commission approved updated capital cost schedules for the Units in Order No. 2011-345 issued on May 16, 2011.
B. Structure of Report and Appendices
The current reporting period is the quarter ending September 30, 2012. The report is divided into the following sections:
Section I: Introduction and Summary;
Section II: Progress of Construction of the Units;
Section III: Anticipated Construction Schedules;
Section IV: Schedules of the Capital Costs Incurred Including Updates to the Information Required by S.C. Code Ann. § 58-33-270(B) (6) (the Inflation Indices);
Section V: Updated Schedule of Anticipated Capital Costs; and
Section VI: Conclusion.
Appendices 1, 2, and 4 to this report contain detailed financial, milestone and other information updating the schedules approved by the Commission in Order Nos. 2010-12 and 2011-345. For reference purposes, Appendix 3 provides a copy of the
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approved capital cost schedule for the project in the form approved in Order No. 2011-345.
A confidential and a public version of this report and its attachments are being provided. All cost information presented reflects only SCE&G’s share of the project’s cost in 2007 dollars unless otherwise specified. Attached to the end of the report is a glossary of acronyms and defined terms used in it.
C. Construction Schedule and Milestones
As the report indicates, the Company has met all current construction milestones approved by the Commission in Order No. 2010-12, as adjusted pursuant to contingencies authorized in Order No. 2009-104(A). There are 146 separate milestones. As of September 30, 2012, 79 have been completed. Comparing the scheduled milestone completion dates as of the date of this report to the milestone completion dates approved by the Commission in Order No. 2010-12, the completion dates of 62 milestones have changed. Of these, 20 have been accelerated and 42 have been delayed for between one and 17 months.
D. Construction Costs and Cost Forecasts
Spending through December 31, 2012 in current dollars is forecasted to be approximately $412 million below the capital cost schedule approved in Order No. 2011-345. The present cash flow forecast indicates that the Company will be able to complete the Units for $4.553 billion in 2007 dollars, which is $283 million above the forecast approved in Order No. 2011-345. The current cost estimates include a) new forecasts of Owners Cost associated with the construction oversight and operational readiness functions of the New Nuclear Deployment (NND) team, b) costs associated with the resolution of claims made by the contractors for the Units, Westinghouse Electric Company, LLC and the Shaw Group (WEC/Shaw), related to design changes and delays in the issuance of the Combined Operating Licenses (COLs) for the Units (WEC/Shaw Claims), c) new forecasts of Transmission cost, and d) change orders under the Engineering, Procurement and Construction Agreement (EPC Contract) related to cyber security, health insurance costs, and other matters. The specific items resulting in these increases are discussed in more detail in Section II.
On May 15, 2012, the Company filed a petition with the Commission under the authority of S.C. Code Ann. § 58-33-270(E) (Update Filing) for review and approval of revised construction and cash flow schedules for the project. This Update Filing is discussed in more detail in Section II.
In Order No. 2009-104(A), the Commission recognized that forecasts of Allowance for Funds Used During Construction (AFUDC) expense and escalation would
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vary over the course of the project and required those forecasts to be updated with each quarterly report. The current escalation indices were issued in November of 2012 for the period of January through June of 2012 and have been used in forecasting the construction costs for the project that are presented here.
Chart A below compares the current capital cost forecast to the forecast presented in the last quarterly report. This chart shows a reduction in Gross Construction Costs of $63.6 million over the life of the project. This reduction is due in part to lower escalation rates. With each quarterly update, a quarter that had been subject to the five-year rate becomes subject to the one-year rate. The figures reported on Chart A also include the effect of calculating escalation on an updated cost flow projection for the project.
Chart A: Reconciliation of Capital Cost ($000)
|
Forecast Item |
|
Projected @ 9/30/12
(Five-Year Average
Escalation Rates) |
|
Projected @ 6/30/12
(Five-Year Average
Escalation Rates) |
|
Change |
|
|
Gross Construction |
|
$ |
5,700,406 |
|
$ |
5,764,038 |
|
$ |
(63,632 |
) |
|
Less: AFUDC |
|
$ |
216,764 |
|
$ |
238,326 |
|
$ |
(21,562 |
) |
|
Total Project Cash Flow |
|
$ |
5,483,642 |
|
$ |
5,525,712 |
|
$ |
(42,070 |
) |
|
Less: Escalation |
|
$ |
930,287 |
|
$ |
972,357 |
|
$ |
(42,070 |
) |
|
Capital Cost, 2007 Dollars |
|
$ |
4,553,355 |
|
$ |
4,553,355 |
|
$ |
0 |
|
Chart B compares the current forecast of gross construction costs, including current escalation, to the forecast on which the Commission relied in adopting Order No. 2011-345. Chart B shows that the forecasted capital cost of the Units in 2007 dollars has increased by approximately $283 million. This increase reflects the additions to the budget referenced in Section I. D above and is explained in more detail in Section II of this report. It is offset by the voluntary decision by the Company, communicated to the Commission by letter dated April 25, 2011, that it would not seek recovery for $103,000 in Community Support/Outreach costs that WEC/Shaw had included in costs to be charged under the EPC Contract for the Units. Due to the changes in forecasted escalation, when netted against changes in AFUDC, see Section I. F, below, the cost of the plant in future dollars has decreased by approximately $87 million since Order No. 2011-345 was issued.
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Chart B: Reconciliation of Capital Cost ($000)
|
Forecast Item |
|
Projected @ 9/30/12
(Five-Year Average
Escalation Rates) |
|
As Forecasted
and Approved
In Order 2011-
345 |
|
Change |
|
|
Gross Construction |
|
$ |
5,700,406 |
|
$ |
5,786,943 |
|
$ |
(86,537 |
) |
|
Less: AFUDC |
|
$ |
216,764 |
|
$ |
255,684 |
|
$ |
(38,920 |
) |
|
Total Project Cash Flow |
|
$ |
5,483,642 |
|
$ |
5,531,259 |
|
$ |
(47,617 |
) |
|
Less: Escalation |
|
$ |
930,287 |
|
$ |
1,260,855 |
|
$ |
(330,568 |
) |
|
Capital Cost, 2007 Dollars |
|
$ |
4,553,355 |
|
$ |
4,270,404 |
|
$ |
282,951 |
|
Chart C below shows the current forecasts of the cost of the Units compared to the cost forecasts underlying the initial Base Load Review Act (BLRA) order, which was issued by the Commission in 2009, and the updated orders issued in 2010 and 2011. The decline in capital cost forecasts in 2007 dollars between Order No. 2010-12 and 2011-345 reflects the removal of Owner’s contingency amounts from the forecasts as required by the opinion of the Supreme Court of South Carolina in South Carolina Energy Users Comm. v. South Carolina Pub. Serv. Comm’n, 388 S.C. 486, 697 S.E.2d 587 (2010). This chart shows that while the cost of the project in 2007 dollars has increased by $18 million since the initial forecasts, the cost of the project in future dollars is approximately $613 million below the initial forecast.
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Chart C: Summary of Nuclear Filings (billions of $)
|
Forecast Item |
|
Order No.
2009-104(A) |
|
Order No.
2010-12 |
|
Order No.
2011-345 |
|
Projected @
9/30/12 |
|
|
Capital Cost, 2007 Dollars |
|
$ |
4.535 |
|
$ |
4.535 |
|
$ |
4.270 |
|
$ |
4.553 |
|
|
Escalation |
|
$ |
1.514 |
|
$ |
2.025 |
|
$ |
1.261 |
|
$ |
0.930 |
|
|
Total Project Cash Flow |
|
$ |
6.049 |
|
$ |
6.560 |
|
$ |
5.531 |
|
$ |
5.483 |
|
|
AFUDC |
|
$ |
0.264 |
|
$ |
0.316 |
|
$ |
0.256 |
|
$ |
0.217 |
|
|
Gross Construction |
|
$ |
6.313 |
|
$ |
6.875 |
|
$ |
5.787 |
|
$ |
5.700 |
|
E. Escalation Rates
As provided in Order No. 2009-104(A), the most current one-year inflation indices are used to escalate costs occurring in the twelve-month period after the date of each quarterly report. The most current escalation indices are found in the Handy-Whitman July 2012 update which was issued in November 2012 and reports data for the period January through June of 2012. Those rates are reflected in this report. The approved capital cost targets have been adjusted to reflect the currently reported historical escalation rates. The forecasted costs provided here reflect the terms of the agreement related to the WEC/Shaw Claims which changes the index applicable to Firm with Indexed Adjustment cost categories going forward from a floating Handy-Whitman adjustment to a fixed rate for the life of the project.
As shown on Appendix 4, utility construction cost escalation rates were at historically high levels during the period 2005-2008, and since then have dropped. Current escalation rates are shown below on Chart D. When compared to the previous Handy-Whitman release, the current update shows a downward trend in rates.
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Chart D: Handy-Whitman Escalation Rates
Escalation Rate Comparison
|
|
|
Jul-Dec 2011 |
|
Jan-Jun 2012 |
|
|
HW All Steam Index: |
|
|
|
|
|
|
One-Year Rate |
|
4.51 |
% |
1.92 |
% |
|
Five-Year Average |
|
3.91 |
% |
3.60 |
% |
|
Ten-Year Average |
|
4.71 |
% |
4.67 |
% |
|
HW All Steam/Nuclear Index: |
|
|
|
|
|
|
One-Year Rate |
|
4.52 |
% |
2.10 |
% |
|
Five-Year Average |
|
3.87 |
% |
3.64 |
% |
|
Ten-Year Average |
|
4.72 |
% |
4.70 |
% |
|
HW All Transmission Plant Index: |
|
|
|
|
|
|
One-Year Rate |
|
2.48 |
% |
(0.17 |
)% |
|
Five-Year Average |
|
3.00 |
% |
2.56 |
% |
|
Ten-Year Average |
|
4.55 |
% |
4.71 |
% |
F. AFUDC
The AFUDC for the project is currently projected to be approximately $38.9 million lower than the forecast on which Order No. 2011-345 was based. Consistent with Order No. 2009-104(A), SCE&G computes AFUDC based on the Federal Energy Regulatory Commission (FERC) approved methodology as applied to the balance of Construction Work in Progress (CWIP) that is outstanding between rate adjustments. SCE&G’s projected AFUDC rate is currently 5.28% versus a rate of 5.87% that applied when Order No. 2011-345 was issued.
G. Compliance with the Commission Approved Cumulative Project Cash Flow Target
The current approved Cumulative Project Cash Flow target for the project was adopted by the Commission in Order No. 2011-345. In Order No. 2009-104(A), the Commission provided that the applicable Cumulative Project Cash Flow target would be adjusted with each quarterly report to reflect updated escalation data.
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Appendix 2 provides the approved Cumulative Project Cash Flow target updated for current escalation data. The cash flow targets up until June 2012 have been updated to reflect actual escalation rates. The cash flow targets for the third quarter of 2012 and beyond have been updated based on the most recently available inflation indices, which for purposes of this report, are the indices provided in November of 2012 that report data for the period January through June 2012. When final actual indices for the remainder of 2012 become available, the cash flow data for 2012 will be revised to reflect the actual escalation rates.
Appendix 2 compares the approved Cumulative Project Cash Flow target to the current cumulative cash flow schedules for the project, which include actual costs where available and SCE&G’s working forecasts of annual cash flows for future years. In addition, the project cash flow targets presented on Appendix 2 for 2011 and 2012 have been adjusted to reflect timing differences between the billing methodology under the EPC Contract and the calculation of the escalated cash flow targets under Order No. 2009-104(A). Under the EPC Contract, for periods where actual escalation rates are not available, WEC/Shaw bills SCE&G based on a rolling 2-year average of the applicable Handy-Whitman rate and provides adjustments to reflect the actual rate when it is known. An adjustment has been made to Appendix 2 target calculations to offset the timing differences that arise as a result of WEC/Shaw’s approach to estimated billings and credits. This adjustment applies to those EPC Contract cost categories that are subject to indexed escalation.
II. Progress of Construction of the Units
Since issuance by SCE&G of a Full Notice to Proceed (FNTP) to WEC/Shaw on April 19, 2012, work has been progressing at the project site. During the third quarter of 2012, WEC/Shaw placed over 18,000 cubic yards of concrete for the Nuclear Island (NI) and turbine building of Unit 2. Since placement of this concrete began in April of 2012, a total of 36,000 cubic yards have been placed in this location.
Overall, the fabrication of equipment off-site is proceeding satisfactorily on a schedule that supports the on-site construction schedule. The components of the Condenser for Unit 2 have arrived onsite and are being assembled. Manufacturing and testing of the Reactor Vessel for Unit 2 is nearing completion and shipment is planned for the first quarter of 2013. However, the schedule for fabrication of sub-modules from the Shaw Modular Solutions (SMS) facility in Lake Charles, Louisiana remains a focus area for the project. This sub-module fabrication work continues to be delayed due to previously identified module redesign and quality issues. Progress has been made with production issues, and Quality Assurance and Quality Control (QA/QC) issues. SMS continues to work on its production schedule to mitigate past delays. SCE&G continues
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to monitor and oversee this area carefully and is devoting resources and attention to this area. This is discussed further in Section II.C.1.
As previously reported, on July 30, 2012, Chicago Bridge & Iron (CB&I) announced it had entered into a definitive agreement to purchase the Shaw Group which it plans to operate as a business sector under the name CB&I Shaw. The acquisition is not anticipated to affect the project in any material way.
The agreement resolving the claims associated with the delayed issuance of the COLs, design changes to the Shield Building, design changes to the structural modules, and the lower than anticipated rock elevations encountered in certain areas where the Unit 2 NI will be constructed was finalized on July 11, 2012, and reflects new Substantial Completion Dates for Units 2 and 3 of March 2017 and May 2018, respectively. This agreement will be incorporated in Change Order No. 16 which is being prepared for execution.
At present all BLRA milestone completion dates are within approved schedule contingencies. Based on BLRA milestone updates received from WEC/Shaw as of the close of this reporting period, two milestones have been delayed by 17 months: Milestone No. 61, Core Make-Up Tank Hydro Test; and, Milestone No. 92, Start Containment Large Bore Pipe Supports for Unit 2. However, neither of these milestone delays will affect the construction-need date of the activities in question. The updated completion dates for all milestones are listed in Appendix 1.
A more detailed presentation of the status of the project is addressed in Section II.A-Section II.G below.
A. Licensing and Permitting
As licensee for the Units, SCE&G is now directly accountable to the Nuclear Regulatory Commission (NRC) for its contractors meeting nuclear-safety related QA/QC requirements both at the project site and at the facilities of its component manufacturers and equipment suppliers worldwide. The Consortium through the EPC Contract is also responsible to SCE&G for making sure that these requirements are met.
1. NRC Inspections
The NRC completed the following inspections at the project site:
· A Module Assembly Building/Civil Work Inspection on July 19, 2012.
· A Containment Vessel Welding Inspection on July 25, 2012.
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· A Quality Assurance Implementation Inspection on August 9, 2012.
· A Monthly Civil Inspection on September 13, 2012. The NRC debriefed an Unresolved Item (URI) related to concrete reinforcement in the basemat elevator pit and NI sumps area. Additional information is provided in Section II.D.3.
Other than the URI described above, no items of significance were identified during the NRC inspections.
2. Other NRC Activities
NRC Commissioner Kristine Svinicki met with NND site management and toured the construction site on August 9, 2012. Ms. Svinicki spoke to SCE&G employees at the close of her tour.
3. NRC Response to the Japanese Earthquake and Tsunami of March 2011
In an industry-wide effort to address requirements associated with Fukushima related orders, the Nuclear Energy Institute (NEI) developed guidance for licensees to use in near-term and long-term planning for compliance which has been endorsed by the NRC. SCE&G used that NRC-endorsed guidance to develop strategies for compliance with a license condition 2.D(13), which relates to restoring core cooling after a beyond design basis accident. In addition, SCE&G has used that guidance to develop strategies for complying with Order EA-12-063, which requires SCE&G to address several characteristics of the Units’ spent fuel pool instrumentation to assure that water levels are identifiable during a beyond design basis event.
In response to license condition 2.D(13), SCE&G issued its initial status report to the NRC on October 22, 2012, subsequent to this reporting period. In its status report, SCE&G summarized those actions both taken and planned in an effort to comply with the license condition.
In response to NRC Order EA-12-063, SCE&G issued its initial status report to the NRC on October 29, 2012, related to spent fuel pool instrumentation. SCE&G provided the NRC with a technical report addressing all requirements of the Order, allowing SCE&G to request that the Order be closed out since the conditions had been met.
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As previously reported, SCE&G responded to the NRC concerning the NRC’s Request for Information (RFI) dated April 13, 2012 by letter on June 7, 2012 addressing emergency power supply for site communications equipment and the staffing necessary to execute the emergency plan in the event of a multi-unit event that resulted in an extended loss of all AC power. The NRC has not requested any additional information.
4. Major Construction Permits
a) National Pollutant Discharge Elimination System (NPDES) Permit
The NPDES permit, required for construction of the Raw Water System (RWS) intake structure, the Wastewater System (WWS) and other facilities associated with the water and wastewater systems, was issued by the South Carolina Department of Health and Environmental Control (SCDHEC) on October 11, 2012, subsequent to this reporting period. This permit also authorizes future discharges from the WWS and of blow down water from the Cooling Towers. One concerned citizen has appealed. The NPDES permit must await resolution of the appeal.
b) Other Major Construction-Related Permits
No other major construction-related permits are outstanding. Other construction-related permits are anticipated to be obtained in the ordinary course of administering the project.
5. BLRA Regulatory Proceedings
As previously reported, on May 15, 2012, SCE&G submitted an Update Filing with the Commission which included revised project construction schedules and cash flow schedules. Those revisions reflected a) revised substantial completion dates for the Units, b) the resolution of the WEC/Shaw Claims, c) revised Owners costs forecasts, d) revised Transmission costs forecasts, and e) other change orders associated with cyber security, health care costs and other matters. The revised construction schedules requested in this docket reflect the new substantial completion dates of March 2017 and May 2018 for Units 2 and 3 respectively and a resetting of certain BLRA milestones. A hearing on the Update Filing was held on October 2-3, 2012. Under S.C. Code Ann. § 58-33-270(E), the Update Filing is to be approved unless the schedule and cost updates are shown to be the result of imprudence by the utility. By statute, the Commission is required to issue an order approving or denying the petition by November 15, 2012.
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The Commission voted on this matter on November 7, 2012 and issued a directive approving the revised project construction milestone schedules and cash flow schedules. The only exception was that the Commission determined that the costs associated with Phase II of the change order addressing cyber security upgrades to the Units, in the amount of $4.95 million, were premature since the precise scope of Phase II work will be determined by the evaluation and work plan created in Phase I. The Commission did not suggest that these costs could not be recovered but indicated that the Company may seek to include them within its approved capital costs schedules when they are more fully known.
B. Engineering
1. Engineering Completion Status
As of September 30, 2012, the VCSN Units 2 & 3 Total Plant Design Completion Status is as follows:
a) Site-specific design — 90.3% complete.
b) Standard Plant Issued for Construction (IFC) Drawings — 67.8% complete.
2. Site Specific Design Activities
Site specific design work is ongoing in support of site specific systems, to include the Circulating Water System (CWS), Yard Fire System (YFS), Potable Water System, RWS, Sanitary Drain System, Offsite Water System (OWS) and WWS.
As discussed in previous reports, environmental testing to support OWS design efforts revealed out-of-specification levels of disinfectant byproducts that were determined to be caused by the presence of bromides in the Broad River. As a result of these findings, the project team determined that redesign of the OWS using reverse osmosis is necessary to achieve SCDHEC potable water requirements. Reverse osmosis is a process by which a semi-permeable membrane is utilized to filter out any unwanted substances in water supplies. Efforts are ongoing to define the work scope and additional costs associated with this issue.
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As previously reported, phosphate discharges into the Parr Reservoir were limited by SCDHEC due to the elevated level of phosphates otherwise occurring in the Broad River and this would cause SCE&G to have to make changes in treatment plans. It has now been determined that SCE&G will meet the current environmental discharge limits, so this issue will not affect current treatment plans.
C. Procurement/Fabrication
1. The delays related to fabrication and delivery of the sub-modules by SMS at its facility in Lake Charles, Louisiana continue to be an important area of focus for the project. However, floor and wall sub-modules for Unit 2 module CA20 continue to be received on site and fitted up for welding in the Module Assembly Building (MAB). In early July 2012, WEC/Shaw presented SCE&G with a module delivery and assembly schedule and plans to mitigate further schedule impact due to fabrication delays previously experienced with SMS.
On May 11, 2012, the NRC completed a licensee Inspections, Tests, Analyses and Acceptance Criteria (ITAAC) inspection at SMS. A URI for Design Control Document (DCD) discrepancies related to module Nelson stud spacing and a few minor performance deficiencies were debriefed. During the NRC 2012 Third Quarter Exit conducted on October 9, 2012, which occurred subsequent to this reporting period, the NRC substituted for the previous URI a potential Green, NRC-identified violation. A “Green” finding is an NRC-identified finding of very low safety significance.
Additionally, during the third quarter of 2012, WEC identified an issue related to a welding process option used during fabrication on several sub-modules that does not meet the “full penetration” weld configuration specified in the Current Licensing Basis for the AP1000 reactor. The previously fabricated CA20 sub-modules will require repair that likely will occur on the project site or at qualified facilities other than the SMS facility to allow module fabrication to continue there with no further delays. Efforts are also ongoing by the Consortium to mitigate further licensing configuration deviations by ensuring compliance with the current licensing basis on future module fabrication.
Senior management from both SCE&G and WEC/Shaw continue to actively monitor progress in this area. WEC personnel continue to provide on-site engineering support for production at SMS. As previously reported, SCE&G placed a permanent resident inspector at the SMS facility who continues to provide additional oversight, reporting and support.
2. The Unit 2 Core Make-Up Tanks, Pressurizer, Accumulators, and Passive Residual Heat Removal (PRHR) Heat Exchanger are under active manufacture
12
at Mangiarotti (MN) facilities in Italy. This work was initially delayed due to QA/QC issues and work scheduling issues at MN suppliers but is now proceeding. The manufacture of the Unit 2 Core Make-Up Tanks at MN facilities in Italy has been delayed due to a change in the design. As of September 30, 2012, this milestone shows a delay of 17 months for completion of hydrostatic testing in Appendix 1. This delay is not anticipated to affect the construction schedule since the shipment dates for the Core Make-Up Tanks are well in advance of the requirements of the construction schedule. Additional WEC project personnel have been assigned to the facility to provide quality and schedule oversight in an effort to minimize schedule delays.
3. The Units’ Reactor Coolant Pumps are being produced in Pennsylvania by the Electro-Mechanical Division (EMD) of Curtiss-Wright Corp. Pump manufacturing and the delivery schedule supports the current Unit 2/3 construction schedule.
4. As previously reported, the Unit 2 Reactor Coolant Loop Piping hot and cold legs were shipped to the Carolina Energy Solutions (CES) facility in Rock Hill, South Carolina for the installation of fittings and other welding activities. Reactor Coolant Loop Piping surge lines have been received onsite. The hot legs and cold legs are anticipated to arrive onsite in January of 2013.
5. The turbine generator for Unit 2 is under manufacture at the Toshiba facility in Japan and proceeding smoothly. The Fukushima event has not adversely impacted any of the Japanese manufacturing activities related to the project.
D. Construction
1. Control cable installation and relay testing by Pike continues to progress. The Switchyard remains on schedule to be energized in the first half of 2013, which fully supports the project schedule.
2. Safety-related concrete placement through the upper mudmat in the Unit 2 NI was completed in August 2012. Completion of work on the Unit 2 NI and Turbine Building horizontal waterproof membranes (the vapor barrier under each basemat) will now allow vertical work to begin. A portion of basemat rebar assembly was completed and placed on top of the NI mudmat. Assembly of rebar for the Shield Building and other areas has commenced.
3. As reported in the last quarter, WEC/Shaw had begun assembling the framework of steel reinforcing bar (rebar) for the basemat of the NI using a technique for terminating the floor rebar at the wall connection using “T” joints.
13
In inspecting similar work at the Vogtle site, NRC inspectors took the position that the technique being used was not the technique envisioned by the relevant drawings in the DCD and was not in compliance with those drawings. The NRC also raised an issue concerning rebar fabrication. In response, SCE&G entered these issues into the CAP. WEC/Shaw disassembled the work done using the earlier techniques and has proceeded with construction using the alternative approach shown in the drawings. Since the last report, the project has also experienced issues with acceptability of steel components intended for use in the steel framework of the basemat. These components have been identified and replaced. Subsequent to this reporting period, the NRC raised questions relative to the rebar design for the NI elevator pit and NI sumps. WEC is in the process of addressing the NRC questions. The initial pouring of the basemat concrete has been delayed pending the resolution of the NRC questions related to this rebar design. SCE&G continues to monitor Shaw’s compliance with the DCD in performing this work.
4. During the third quarter of 2012, the Heavy Lift Derrick (HLD) made its second lift of a rebar preassembly weighing approximately 465 tons, which was placed onto the NI mudmat, and continues to prove useful in off-loading components and placing them into storage on the project site.
5. The onsite fabrication of the Containment Vessel (CV) by CB&I is steadily progressing. Fit-up work on the rings that attach to the bottom head and will form the vertical walls of the CV continues. Shaw has installed the majority of the exterior circumferential rebar for the CV Bottom Head. Exterior vertical rebar and interior rebar installation is ongoing.
6. Work on the Cooling Towers has progressed during the third quarter of 2012. Setting of CWS supply and return pipes in Cooling Tower 2A was completed. Erection of Cooling Tower 2A precast walls began. Concrete basin wall placements were completed for Cooling Towers 3A and 3B. Setting of CWS supply and return pipes for Cooling Towers 3A and 3B continued. Grading work which required the United States Army Corps of Engineers (USACE) Section 404 permit in the area of Cooling Tower 2B is progressing.
7. It was previously reported that assembly of the CR-10 Module for Unit 2 in which the bottom head will be set was completed. However, some rework was required due to design changes to improve the lap splice locations for rebar. Shaw has now begun to place rebar on the CR-10 structure.
8. As previously reported, excavation for the Unit 3 NI and Turbine Building was completed in July 2012. Final blasting and removal of rock has been completed. Geological mapping for
14
this area was 70% complete as of the end of September. A recent NRC inspection of the Unit 3 excavation geological features and mapping program yielded positive results, with no findings or violations.
E. Training
1. Collaborative efforts between WEC, SCE&G, and Southern Nuclear Company (SNC) have resulted in a recovery plan schedule for implementation of Human Factors Engineering/Integrated System Validation (HFE/ISV) testing for the Plant Reference Simulator (PRS). The schedules for implementation of the PRS and the subsequent NRC inspection of the PRS now support the NRC licensing of operators to support fuel load. Continuous monitoring and routine status updates are ongoing to ensure that the required number of reactor operators are trained and licensed by the NRC, which will allow Unit 2 fuel load to take place. The validation and testing of the PRSs will remain an area of continued focus for the project given the importance to the project of meeting the reactor operator training schedule.
2. The Senior Reactor Operator Certification (SROC) class that began on June 11, 2012 at VCSNS continues using VCSNS Senior Reactor Operator (SRO) certified instructors. The simulator phase of the SROC training conducted using the Limited Scope Simulators (LSS) started in September 2012 and will continue through January 2013. All students have successfully completed the systems portion of the training.
3. As previously reported, no findings were identified during an evaluation of the Units’ Operations training programs conducted during the last week of June by the National Academy for Nuclear Training Accreditation Team. The Units’ six Operations training programs for reactor operators, shift managers and related positions were accredited by the National Academy for Nuclear Training’s National Nuclear Accrediting Board on October 18, 2012 at the Institute of Nuclear Power Operations (INPO) in Atlanta, GA.
4. Through a collaborative effort between SCE&G, SNC and the NRC, a group was formed that will assess licensed operator examination standards for AP1000 plants. As part of this effort, mock NRC simulator exams were conducted at Vogtle Units 3 & 4 the week of August 20, 2012 using SCE&G and SNC instructors. The NRC determined that no substantive changes to the examination standards will be required.
15
F. Change Control/Owners Cost Forecast
1. Regulatory Delay/New Requirements Costs and Other Associated Costs —As discussed in Section II, SCE&G and WEC/Shaw reached an agreement concerning the WEC/Shaw claims in July. The resolution of these claims is being incorporated into the Change Order No. 16 draft at this time. Costs associated with the WEC/Shaw claims were in the updated cost forecast for the Units presented in the Update Filing and the March 31, 2012 Quarterly Report.
2. Escalation Rate Changes — The settlement agreement finalized in July 2012 fixes the escalation rate on the Fixed with Indexed Adjustment Category going forward for the life of the project. This change applies to approximately $1.0 billion in costs under the EPC Contract which will now be escalated at the same fixed rates that apply to the existing Firm with Adjustment A cost category. These amounts were previously escalated based on the Handy-Whitman Indices. The Handy-Whitman Indices will continue to be used in adjusting non-firm cost categories including a) the Target cost categories, i.e., Actual Craft Wages, and Non-Labor Costs, and b) the Time & Materials cost category.
G. Transmission
1. VCS1-Killian 230 kV Line — By Order No. 2011-978, the Commission approved the siting of the VCS1-Killian 230 kV Line under the South Carolina Utility Facility Siting and Environmental Protection Act. In early January 2012 SCE&G began construction on the VCS1-Killian 230 kV Line. As of September 30, 2012, approximately seventy percent (70%) of the VCS1-Killian 230 kV Line is complete.
2. VCS2-Lake Murray 230 kV Line No. 2 and Segment of the VCS2-St. George 230 kV Line No. 1 — Order No. 2011-978 also approved the siting of VCS2-Lake Murray 230 kV Line No. 2, and a segment of the VCS2-St. George 230 kV Line No. 1 which extends from V.C. Summer Switchyard #2 to the Lake Murray 230/115 kV Substation. In May 2012, SCE&G began construction on these lines. As of September 30, 2012, construction of these two lines is approximately thirty percent (30%) complete.
3. The Remaining Segment of VCS2-St. George 230 kV Line No. 1 and the VCS2-St. George 230 kV Line No. 2 — On September 26, 2012, by Order No. 2012-730 the Commission approved the siting of the remaining segment of VCS2-St. George 230 kV Line No. 1 and the VCS2-St. George 230 kV Line No. 2 under the South Carolina Utility Facility Siting and Environmental Protection Act. These lines are being built on existing right of way corridors. Construction of these lines has not yet begun.
16
4. St. George Switching Station — In Order No. 2012-730, the Commission also issued a Certificate of Environmental Capability and Public Convenience and Necessity authorizing construction of this switching station. The site for it was purchased in 2009. Construction of the switching station has not begun.
5. Saluda River Substation — SCE&G is currently in the process of purchasing a site for the new Saluda River 230/115 kV Substation. The site will be adjacent to the corridor for the St. George lines and one of the St. George 230 kV lines will fold into this new substation when it is built. In Order No. 2012-730, the Commission issued a Certificate of Environmental Capability and Public Convenience and Necessity authorizing construction of the new substation. SCE&G has entered an agreement to purchase the site and has completed the Phase 1 environmental assessment of it. Closing is anticipated before the end of 2012.
6. Other — The lowering of the Parr-Midway 115 kV Line is complete. Work continues in a satisfactory manner regarding the rebuilding of the Parr-VCSN Safeguard 115 kV Line, the terminal and bus upgrades at Canadys, Summerville and Saluda Hydro substations and the other transmission related projects.
III. Anticipated Construction Schedules
As of September 30, 2012, the Company and its contractors remain on schedule to complete all required milestones as adjusted pursuant to the milestone schedule contingencies approved by the Commission in Order No. 2009-104(A). Each of those adjustments is itemized in the BLRA Milestone section that follows. Accordingly, the project is in compliance with the construction schedules approved by the Commission in Order No. 2010-12 and with the provisions of S.C. Code Ann. § 58-33-275(A)(1).
A. Construction Schedule
The Project Licensing and Permitting, Engineering, Procurement and Construction work remains on schedule to meet the Units’ Substantial Completion Dates taking into account the schedule contingencies approved in Order 2009-104(A). A revised project schedule was submitted to the Commission as part of the Update Filing on May 15, 2012 which reflects the new substantial completion dates for the Units and other revisions to the schedule.
17
B. BLRA Milestones
Appendix 1 to this quarterly report lists and updates each of the specific milestones constituting the anticipated construction schedule for the Units pursuant to S.C. Code Ann. § 58-33-270(B)(1) and Order No. 2010-12. Comparing the milestone dates in this quarter to the reset milestone dates in Order No. 2010-12, 20 milestones have been advanced and 42 have been delayed. None of the reset milestones are outside of the parameters established by Order No. 2009-104(A).
IV. Schedules of the Capital Costs Incurred Including Updates to the Information Required by S.C. Code Ann. § 58-33-270(B) (6) (the Inflation Indices)
The Capital Cost section of this report (Section IV.A) provides an update of the cumulative capital costs incurred and forecasted to be incurred in completing the project. These costs are compared to the cumulative capital cost targets approved by the Commission in Order No. 2011-345. The approved capital cost targets have been adjusted to reflect the currently reported historical escalation rates. There has not been any use by the Company of the capital cost timing contingencies that were approved by the Commission in Order No. 2009-104(A). The Inflation Indices section (Section IV.B) of this report provides updated information on inflation indices and the changes in them.
A. Capital Costs
Appendix 2 shows the Cumulative Project Cash Flow target as approved in Order No. 2011-345 and as updated for escalation and other Commission approved adjustments under the heading “Per Order 2011-345 Adjusted.”
Appendix 2 also shows the cumulative cash flow for the project based on actual expenditures to date and the Company’s current forecast of cost and construction schedule under the heading “Actual through September 2012 plus Projected.”
As shown on Appendix 2, the actual expenditure for the project during the 12 months ended December 31, 2011 was approximately $349 million. As shown on Appendix 2, line 39, the cumulative amount projected to be spent on the project as of December 31, 2012 is approximately $1.805 billion. As shown on Appendix 2, line 18, the Cumulative Project Cash Flow target approved by the Commission for year-end 2012 adjusted for current escalation and WEC/Shaw billing differences is approximately $2.128 billion. As a result, the cumulative cash flow at year-end 2012 is forecasted to be approximately $323.1 million less than the target.
For comparison purposes, Appendix 3 sets out the cash flow schedule for the project as it was approved in Order No. 2011-345. Appendix 3 does not include any adjustments to the cash flow schedule for changes in inflation indices or adjustments in
18
capital cost schedules made by the Company. The AFUDC forecast presented on Appendix 3 is the AFUDC forecast that was current at the time of Order No. 2011-345.
B. Inflation Indices
Appendix 4 shows the updated inflation indices approved in Order No. 2009-104(A). Included is a history of the annual Handy-Whitman All Steam Index, South Atlantic Region; the Handy-Whitman All Steam and Nuclear Index, South Atlantic Region; the Handy-Whitman All Transmission Plant Index, South Atlantic Region; and the Chained GDP Index for the past 10 years. The changes in these indices and the escalation-related effects of cost rescheduling resulted in a decrease in the projected cost of the Units in future dollars from $6.3 billion as forecast in Order No. 2009-104(A) to a forecast of $5.7 billion using current inflation data.
V. Updated Schedule of Anticipated Capital Costs
The updated schedule of anticipated capital costs for Units 2 & 3 is reflected in Appendix 2.
VI. Conclusion
The Units are currently anticipated to be completed at a cost of approximately $4.6 billion in 2007 dollars. The Company maintains an extensive staff of experts that monitors and oversees the work of its contractors and has identified and continues to monitor closely all areas of concern related to either cost or schedule for the project. The Company will continue to update the Commission and the ORS of progress and concerns as the project proceeds.
19
ATTACHMENT 1
GLOSSARY OF ACRONYMS OR DEFINED TERMS
|
Acronym or
Defined Term |
|
Reference |
|
7Q10 |
|
A standard low-water flow condition used for evaluating the environmental effects of discharges and withdrawals from rivers and streams. The conditions are calculated to reflect the lowest average 7-day flow expected to be encountered during any 10-year period. |
|
AFUDC |
|
Allowance for Funds Used During Construction. |
|
AP1000 |
|
The WEC designed Advanced Pressurized water nuclear reactor of approximately 1000 megawatts generating capacity. |
|
APOG |
|
A group of utilities who have submitted applications for AP1000 COLs. |
|
BLRA |
|
The Base Load Review Act, S.C. Code Ann. § 58-33-210 et seq. (Supp. 2009). |
|
CA |
|
The designation for a specific pre-fabricated construction module that forms part of the reactor building, such as Module CA20. |
|
CAP |
|
Corrective Action Program. |
|
CAR |
|
A Corrective Action Report related to design, engineering or construction of the Units, or related processes, that must be corrected. |
|
CB&I |
|
Chicago Bridge & Iron, a sub-contractor on the project. |
|
CES |
|
Carolina Energy Solutions a subcontractor located in Rock Hill, South Carolina. |
|
COLs |
|
Combined Operating Licenses for construction and operation of a nuclear unit issued by the NRC. |
|
COLA |
|
A Combined Operating License Application. |
|
Commission |
|
The Public Service Commission of South Carolina. |
|
Consortium |
|
The joint venture between WEC Electric Company, LLC and the Shaw Group to construct the Units under the terms of the EPC Contract. |
|
CR |
|
A Condition Report communicating and memorializing concerns with the design, engineering or construction of the Units, or related processes, which report in some cases can become the basis for a Corrective Action Report. |
|
CV |
|
The Containment Vessel which provides containment for the reactor vessel and associated equipment. |
|
CVBH |
|
The Containment Vessel Bottom Head that forms the bottom of the Containment Vessel. |
|
CWIP |
|
Construction Work in Progress. |
|
CWS |
|
The Circulating Water System —the system that will transport waste heat from the turbines to the cooling towers. |
|
Cyber Security |
|
Technologies, processes and practices designed to protect networks, computers, programs and data from attack, damage or unauthorized access. |
|
DCD |
|
Design Control Document which is approved by the Nuclear Regulatory Commission and sets forth the approved design of a nuclear reactor. |
|
Departures |
|
Departures are minor deviations from the approved Design Control Document included in the licensing basis for the Units that do not rise to the level requiring a License Amendment Request (LAR). |
|
EMD |
|
Electro-Mechanical Division of Curtiss-Wright Corp., the sub-contractor for the Reactor Coolant Pumps. |
|
EPA |
|
The United States Environmental Protection Agency. |
20
ATTACHMENT 1
GLOSSARY OF ACRONYMS OR DEFINED TERMS
|
Acronym or
Defined Term |
|
Reference |
|
EPC Contract |
|
The Engineering, Procurement and Construction Agreement for construction of the Units entered into by SCE&G and WEC/Shaw. |
|
FEIS |
|
A Final Environmental Impact Statement as required by the National Environmental Policy Act of 1969. |
|
FERC |
|
The Federal Energy Regulatory Commission. |
|
FFD |
|
Fitness For Duty, a program that seeks to provide reasonable assurance that site personnel are trustworthy, will perform their tasks in a reliable manner, and are not under the influence of substances or otherwise impaired in a way that may adversely affect their ability to safely and competently perform their duties. |
|
Fixed/Firm |
|
Prices under the EPC Contract which are either fixed or are firm but subject to defined escalation rates. |
|
FLEX |
|
A diverse, flexible strategy led by NEI for adding more backup systems to cool nuclear reactors and used fuel storage pools and to maintain the integrity of reactor containment structures in response to lessons learned from Fukushima. |
|
FNTP |
|
Full Notice to Proceed authorizing all remaining safety-related work to commence. |
|
FSAR |
|
Final Safety Analysis Report — a report by the applicant providing support to the NRC’s approval and certification of the standard power plant design. |
|
GDP |
|
Gross Domestic Product. |
|
HFE/ISV |
|
Human Factors Engineering/Integrated Systems Validation —part of the development of a training simulator for the Units. |
|
HL or Hot Leg |
|
That part of the Reactor Cooling Loop that transports steam to the steam generators. |
|
HLD |
|
Heavy Lift Derrick - the derrick that will be erected on site to move large modules and equipment. |
|
IBF |
|
Subcontractor of Tioga that manufactures the Reactor Coolant Loop piping. |
|
IFC |
|
Issued for Construction —engineering drawings that include information necessary for construction of specific structures, systems and components. |
|
ILO |
|
Initial Licensed Operator. |
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INPO |
|
Institute of Nuclear Power Operations. |
|
IPS |
|
Integrated Project Schedule for licensing and construction of the Units. |
|
ITAAC |
|
Inspections, Tests, Analyses, and Acceptance Criteria which are the inspections, tests, analyses and acceptance criteria that the NRC has determined to be necessary and sufficient to demonstrate that a nuclear unit has been constructed and will operate in conformity with the COLs, the Atomic Energy Act of 1954, as amended, and the NRC’s regulations. |
|
LAR |
|
License Amendment Request — A formal request made by VCSNS to amend the combined operating license, its appendices, or its associated bases. |
|
LNTP |
|
Limited Notice to Proceed authorizing a vendor to commence specific work. |
|
LSS |
|
Limited Scope Simulator —a training simulator with limited functionality that can be used for the initial stages of operator training. |
|
MAB |
|
Module Assembly Building -a building on site where large modules will be constructed and equipment will be prepared for installation in a space that is protected from the elements. |
|
MN |
|
Mangiarotti —a supplier of nuclear components headquartered in Sedegliano, Italy. |
21
ATTACHMENT 1
GLOSSARY OF ACRONYMS OR DEFINED TERMS
|
Acronym or
Defined Term |
|
Reference |
|
Near Term Task Force |
|
A senior level task force created by the NRC to address lessons learned from the 2011 earthquake and tsunami in Fukushima, Japan with operating nuclear plants and new reactor applicants. |
|
NEI |
|
Nuclear Energy Institute. |
|
Nelson Studs |
|
Metal studs used in composite construction to secure concrete to steel components. The studs project out of the steel components and are surrounded by the concrete when it is poured. |
|
NI |
|
Nuclear Island, comprising the steel containment vessel, the reactor building, and the auxiliary building. |
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NLC |
|
Nuclear Learning Center - a training facility operated by SCE&G at the Jenkinsville site. |
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NND |
|
The New Nuclear Deployment Team within SCE&G. |
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NPDES |
|
National Pollutant Discharge Elimination System. |
|
NRC |
|
The United States Nuclear Regulatory Commission. |
|
ORS |
|
South Carolina Office of Regulatory Staff. |
|
OWS |
|
Off Site Water System — the system that withdraws water from Monticello Reservoir and provides potable and filtered water for the Units. |
|
Pike |
|
Pike Energy Solutions, a contractor for transmission and switchyard related work. |
|
PRA |
|
Probabilistic Risk Assessment. |
|
PRHR |
|
The Passive Residual Heat Removal Exchanger unit —a heat exchanger unit that is part of the passive safety system which provides cooling to the AP1000 reactor during emergency situations. |
|
PRS |
|
Plant Reference Simulator — a training simulator with full functionality that can be used in all stages of operator training. |
|
QA |
|
Quality Assurance — The planned and systematic activities implemented in a quality system so that the quality requirements for a product or service will be fulfilled. |
|
QA/QC |
|
Quality Assurance/Quality Control. |
|
QC |
|
Quality Control — The observation techniques and activities used to fulfill requirements for quality. |
|
RAI |
|
Requests for Additional Information issued by the NRC staff to license applicants. |
|
RCA |
|
Root Cause Analysis — identification and evaluation of the reason for non-conformance, an undesirable condition, or a problem which (when solved) restores the status quo. |
|
RCL |
|
The Reactor Coolant Loop —the piping and related equipment that transports heat from the reactor to the steam generator. |
|
RCP |
|
The Reactor Cooling Pump which forms part of the Reactor Coolant System. |
|
RCS |
|
The Reactor Coolant System -the complete system for transferring and transporting heat from the reactor to the steam generator. |
|
RFI |
|
Requests for Information issued by the NRC staff to licensees. |
|
ROW |
|
Right-of-way. |
|
RT |
|
Radiographic Testing - a nondestructive testing method of inspecting materials for hidden flaws by using the ability of short wavelength electromagnetic radiation (high energy photons) to penetrate various materials. |
|
RWS |
|
Raw Water System —the system for withdrawing and transporting raw water from the Monticello Reservoir. |
22
ATTACHMENT 1
GLOSSARY OF ACRONYMS OR DEFINED TERMS
|
Acronym or
Defined Term |
|
Reference |
|
SAT |
|
Site Acceptance Testing. |
|
SCDHEC |
|
The South Carolina Department of Health and Environmental Control. |
|
SCDNR |
|
The South Carolina Department of Natural Resources. |
|
SCE&G or The Company |
|
South Carolina Electric & Gas Company. |
|
Shaw |
|
The Shaw Group. |
|
SMS |
|
Shaw Module Solutions, LLC. |
|
SNC |
|
Southern Nuclear Company — a subsidiary of Southern Company and licensed operator of the Vogtle Nuclear Units and two other nuclear plants. |
|
SRO |
|
Senior Reactor Operator. |
|
SROC |
|
Senior Reactor Operator Certification. |
|
Target |
|
Costs under the EPC Contract where targets have been established but where SCE&G pays actual costs as incurred. |
|
Units |
|
V. C. Summer Nuclear Station Units 2 & 3. |
|
Update Docket |
|
A proceeding under the BLRA seeking Commission approval of updated cost and construction schedules for the Units. The current Update Docket is Docket No. 2012-203-E. |
|
URI |
|
Unresolved Items — A term used by the NRC during inspections for items that require further action. |
|
USACOE |
|
The United States Army Corps of Engineers. |
|
VCSNS or VCSN |
|
V. C. Summer Nuclear Station. |
|
WEC |
|
Westinghouse Electric Company, LLC. |
|
WEC/Shaw |
|
The consortium formed by Westinghouse Electric Company, LLC and the Shaw Group. |
|
WEC/Shaw Claims |
|
WEC/Shaw’s claims for additional charges associated with the COLs delay, the Shield Building design changes, the structural modules design changes, and the lower than anticipated rock elevations encountered in certain areas within the Unit 2 Nuclear Island. |
|
WTP |
|
The Off-Site Water Treatment Plant which will take water from Lake Monticello and treat it to potable water standards. |
|
WWS |
|
The Waste Water System —the system for collection, treatment and disposal of domestic waste water generated on site. |
|
YFS |
|
The Yard Fire System — the system that provides fire detection and protection outside of the plant. |
23
APPENDIX 1
V. C. Summer Nuclear Station Units 2 & 3
Quarterly Report to the South Carolina Office of Regulatory Staff
Submitted by South Carolina Electric & Gas Company
Pursuant to Public Service Commission Order No. 2009-104(A)
Quarter Ending September 30, 2012
Appendix 1 lists and updates each of the milestones which the Commission adopted as the Approved Construction Schedule for the Units, pursuant to S.C. Code Ann. § 58-33-270(B)(1) in Order No. 2010-12. Appendix 1 provides columns with the following information:
1. Milestone tracking ID number.
2. The description of the milestone as updated in Order No. 2010-12.
3. The BLRA milestone date, both by year and quarter and the specific calendar date for the milestone, as approved by the Commission in Order No. 2010-12.
4. The current milestone date, both by year and quarter and the specific calendar date for the milestone.
5. For each actual completed milestone, the date by which it was completed. For milestones completed prior to the current reporting quarter, the milestone entry is shaded in gray. For milestones completed during the current reporting quarter, the milestone entry is shaded in green. For milestones with planned completion dates that vary in days instead of months, the milestone entry is shaded in yellow.
6. Information showing the number of months, if any, by which a milestone has been shifted.
7. Information as to whether any milestone has been shifted outside of the 18/24 Month Contingency approved by the Commission.
8. Information as to whether any current change in this milestone is anticipated to impact the substantial completion date.
9. Notes.
On the final page of the document, there is a chart summarizing milestone completion and movement comparing the current milestone date to the milestone date approved in Order No. 2010-12. This movement is shown for only the milestones that have not been completed.
24
|
|
Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 1 08-2Q-1: Approve Engineering Procurement and Construction Agreement
5/23/2008 5/23/2008 No No 2 08-2Q-2: Issue P.O.'s to nuclear component
fabricators for Units 2 and 3 Containment Vessels 12/3/2008 12/3/2008 No No 3
08-2Q-2: Contractor Issue PO to Passive Residual Heat Removal Heat Exchanger
Fabricator - First Payment - Unit 2 8/31/2008 8/18/2008 No No 4 08-2Q-2:
Contractor Issue PO to Accumulator Tank Fabricator - Unit 2 7/31/2008
7/31/2008 No No 5 08-2Q-2: Contractor Issue PO to Core Makeup Tank Fabricator
- Units 2 & 3 9/30/2008 9/30/2008 No No 6 08-2Q-2: Contractor Issue PO to
Squib Valve Fabricator - Units 2 & 3 3/31/2009 3/31/2009 No No 7 08-2Q-2:
Contractor Issue PO to Steam Generator Fabricator - Units 2 & 3 6/30/2008
5/29/2008 No No 8 08-2Q-2: Contractor Issue Long Lead Material PO to Reactor
Coolant Pump Fabricator - Units 2 & 3 6/30/2008 6/30/2008 No No 9
08-2Q-2: Contractor Issue PO to Pressurizer Fabricator - Units 2 & 3
8/31/2008 8/18/2008 No No 10 08-2Q-2: Contractor Issue PO to Reactor Coolant
Loop Pipe Fabricator - First Payment - Units 2 & 3 6/30/2008 6/20/2008 No
No 11 08-2Q-2: Reactor Vessel Internals - Issue Long Lead Material PO to
Fabricator - Units 2 and 3 11/21/2008 11/21/2008 No No 12 08-2Q-2: Contractor
Issue Long Lead Material PO to Reactor Vessel Fabricator - Units 2 & 3
6/30/2008 5/29/2008 No No 13 08-2Q-2: Contractor Issue PO to Integrated Head
Package Fabricator - Units 2 & 3 7/31/2009 7/31/2009 No No Appendix 1 VC
Summer Units 2 and 3 South Carolina Electric & Gas Company Color Legend
Completed Completed this Quarter Movement in Days Only Based on April 1,2009
Performance Measurement Baseline Schedule 12-3Q 1 of 13
|
|
|
Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 14 08-2Q-2: Control Rod Drive Mechanism Issue PO for Long Lead Material
to Fabricator - Units 2 and 3 - first payment 6/21/2008 6/21/2008 No No 15
08-2Q-2: Issue P.O.'s to nuclear component fabricators for Nuclear Island
structural CA20 Modules 7/31/2009 8/28/2009 No No 16 08-3Q-1: Start Site
Specific and balance of plant detailed design 9/11/2007 9/11/2007 No No 17
08-3Q-2: Instrumentation & Control Simulator - Contractor Place Notice to
Proceed - Units 2 & 3 10/31/2008 10/31/2008 No No 18 08-3Q-3: Steam
Generator - Issue Final PO to Fabricator for Units 2 and 3 6/30/2008
6/30/2008 No No 19 08-3Q-3: Reactor Vessel Internals - Contractor Issue PO
for Long Lead Material (Heavy Plate and Heavy Forgings) to Fabricator - Units
2 & 3 1/31/2010 1/29/2010 No No 20 08-3Q-3: Contractor Issue Final PO to
Reactor Vessel Fabricator - Units 2 & 3 9/30/2008 9/30/2008 No No 21
08-3Q-4: Variable Frequency Drive Fabricator Issue Transformer PO - Units 2
& 3 4/30/2009 4/30/2009 No No 22 08-4Q-1: Start clearing, grubbing and
grading 1/26/2009 1/26/2009 No No 23 08-4Q-2: Core Makeup Tank Fabricator
Issue Long Lead Material PO - Units 2 & 3 10/31/2008 10/31/2008 No No 24
08-4Q-2: Acumulator Tank Fabricator Issue Long Lead Material PO - Units 2
& 3 10/31/2008 10/31/2008 No No 25 08-4Q-2: Pressurizer Fabricator Issue
Long Lead Material PO - Units 2 & 3 10/31/2008 10/31/2008 No No 26
08-4Q-2: Reactor Coolant Loop Pipe - Contractor Issue PO to Fabricator -
Second Payment - Units 2 & 3 4/30/2009 4/30/2009 No No Appendix 1 VC
Summer Units 2 and 3 South Carolina Electric & Gas Company Color Legend
Completed Completed this Quarter Movement in Days Only Based on April 1,2009
Performance Measurement Baseline Schedule 12-3Q 2 of 13
|
|
|
Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 27 08-4Q-2: Integrated Head Package - Issue PO to Fabricator - Units 2
and 3 - second payment 7/31/2009 7/31/2009 No No 28 08-4Q-2: Control Rod
Drive Mechanisms - Contractor Issue PO for Long Lead Material to Fabricator -
Units 2 & 3 6/30/2008 6/30/2008 No No 29 08-4Q-2: Contractor Issue PO to
Passive Residual Heat Removal Heat Exchanger Fabricator - Second Payment -
Units 2 & 3 10/31/2008 10/31/2008 No No 30 9-1Q-1: Start Parr Road intersection
work. 2/13/2009 2/13/2009 No No 31 09-1Q-2: Reactor Coolant Pump - Issue
Final PO to Fabricator - Units 2 and 3 6/30/2008 6/30/2008 No No 32 09-1Q-3:
Integrated Heat Packages Fabricator Issue Long Lead Material PO - Units 2
& 3 10/31/2009 10/1/2009 No No 33 09-1Q-4: Design Finalization Payment 3
1/31/2009 1/30/2009 No No 34 09-2Q-1: Start site development 6/23/2008
6/23/2008 No No 35 09-2Q-2: Contractor Issue PO to Turbine Generator
Fabricator - Units 2 & 3 2/28/2009 2/19/2009 No No 36 09-2Q-2: Contractor
Issue PO to Main Transformers Fabricator - Units 2 & 3 9/30/2009
9/25/2009 No No 37 09-2Q-3: Core Makeup Tank Fabricator Notice to Contractor
Receipt of Long Lead Material - Units 2 & 3 11/30/2010 12/30/2010 No No
38 09-2Q-4: Design Finalization Payment 4 4/30/2009 4/30/2009 No No 39
09-3Q-1: Turbine Generator Fabricator Issue PO for Condenser Material - Unit
2 8/31/2009 8/28/2009 No No 40 09-3Q-2: Reactor Coolant Pump Fabricator Issue
Long Lead Material Lot 2 - Units 2 & 3 4/30/2009 4/30/2009 No No Appendix
1 VC Summer Units 2 and 3 South Carolina Electric & Gas Company Color
Legend Completed Completed this Quarter Movement in Days Only Based on April
1,2009 Performance Measurement Baseline Schedule 12-3Q 3 of 13
|
|
|
Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 41 09-3Q-2: Passive Residual Heat Removal Heat Exchanger Fabricator
Receipt of Long Lead Material - Units 2 & 3 5/31/2010 5/27/2010 No No 42
09-3Q-3: Design Finalization Payment 5 7/31/2009 7/31/2009 No No 43 09-4Q-1:
Start erection of construction buildings, to include craft facilities for
personnel, tools, equipment; first aid facilities; field offices for site
management and support personnel; temporary warehouses; and construction
hiring office. 10/9/2009 12/18/2009 No No 44 09-4Q-2: Reactor Vessel
Fabricator Notice to Contractor of Receipt of Flange Nozzle Shell Forging -
Unit 2 7/31/2009 8/28/2009 No No 45 09-4Q-3: Design Finalization Payment 6
10/31/2009 10/7/2009 No No 46 09-4Q-4: Instrumentation and Control Simulator
- Contractor Issue PO to Subcontractor for Radiation Monitor System - Units 2
& 3 12/31/2009 12/17/2009 No No 47 10-1Q-1: Reactor Vessel Internals -
Fabricator Start Fit and Welding of Core Shroud Assembly - Unit 2 6/30/2011
7/29/2011 No No 48 10-1Q-2: Turbine Generator Fabricator Issue PO for
Moisture Separator Reheater/Feedwater Heater Material - Unit 2 4/30/2010
4/30/2010 No No 49 10-1Q-3: Reactor Coolant Loop Pipe Fabricator Acceptance
of Raw Material - Unit 2 4/30/2010 2/18/2010 No No 50 10-2Q-1: Reactor Vessel
Internals - Fabricator Start Weld Neutron Shield Spacer Pads to Assembly -
Unit 2 10/31/2011 8/28/2012 No No 51 10-2Q-2: Control Rod Drive Mechanisms -
Fabricator to Start Procurement of Long Lead Material - Unit 2 6/30/2009
6/30/2009 No No Appendix 1 VC Summer Units 2 and 3 South Carolina Electric
& Gas Company Color Legend Completed Completed this Quarter Movement in
Days Only Based on April 1,2009 Performance Measurement Baseline Schedule
12-3Q 4 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 52 10-2Q-3: Contractor Notified that Pressurizer Fabricator Performed
Cladding on Bottom Head - Unit 2 11/30/2010 12/23/2010 No No 53 10-3Q-1:
Start excavation and foundation work for the standard plant for Unit 2
3/15/2010 3/15/2010 No No 54 10-3Q-2: Steam Generator Fabricator Notice to
Contractor of Receipt of 2nd Steam Generator Tubesheet Forging - Unit 2
2/28/2010 4/30/2010 No No 55 10-3Q-3: Reactor Vessel Fabricator Notice to
Contractor of Outlet Nozzle Welding to Flange Nozzle Shell Completion - Unit
2 2/28/2010 12/30/2010 No No 56 10-3Q-4: Turbine Generator Fabricator Notice
to Contractor Condenser Fabrication Started - Unit 2 5/31/2010 5/17/2010 No
No 57 10-4Q-1: Complete preparations for receiving the first module on site
for Unit 2. 8/18/2010 1/22/2010 No No 58 10-4Q-2: Steam Generator Fabricator
Notice to Contractor of Receipt of 1st Steam Generator Transition Cone
Forging - Unit 2 4/30/2010 4/21/2010 No No 59 10-4Q-3: Reactor Coolant Pump
Fabricator Notice to Contractor of Manufacturing of Casing Completion - Unit
2 11/30/2010 11/16/2010 No No 60 10-4Q-4: Reactor Coolant Loop Pipe
Fabricator Notice to Contractor of Machining, Heat Treating &
Non-Destructive Testing Completion - Unit 2 12/31/2010 3/20/2012 No No 61
11-1Q-1: Core Makeup Tank Fabricator Notice to Contractor of Satisfactory
Completion of Hydrotest - Unit 2 11-2Q 5/31/2011 12-4Q 10/31/2012 +17 Month(s)
No No Due to schedule refinement and review. Appendix 1 VC Summer Units 2 and
3 South Carolina Electric & Gas Company Color Legend Completed Completed
this Quarter Movement in Days Only Based on April 1,2009 Performance
Measurement Baseline Schedule 12-3Q 5 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact? Notes
62 11-1Q-2: Polar Crane Fabricator Issue PO for Main Hoist Drum and Wire Rope
- Units 2 & 3 2/28/2011 2/1/2011 No No 63 11-2Q-1: Control Rod Drive
Mechanisms - Fabricator to Start Procurement of Long Lead Material - Unit 3
6/30/2011 6/14/2011 No No 64 11-2Q-2: Turbine Generator Fabricator Notice to
Contractor Condenser Ready to Ship - Unit 2 10/31/2011 3/26/2012 No No 65
11-3Q-1: Start placement of mud mat for Unit 2 7/14/2011 7/20/2012 No No 66
11-3Q-2: Steam Generator Fabricator Notice to Contractor of Receipt of 1st
Steam Generator Tubing - Unit 2 1/31/2011 9/28/2010 No No 67 11-3Q-3:
Pressurizer Fabricator Notice to Contractor of Welding of Upper and
Intermediate Shells Completion - Unit 2 10/31/2010 10/28/2011 No No 68
11-3Q-4: Reactor Vessel Fabricator Notice to Contractor of Closure Head
Cladding Completion - Unit 3 2/28/2012 6/28/2012 No No 69 11-4Q-1: Begin Unit
2 first nuclear concrete placement 11-4Q 10/3/2011 12-4Q 10/17/2012 +12
Month(s) No No Due to schedule refinement and review. 70 11-4Q-2: Reactor
Coolant Pump Fabricator Notice to Contractor of Stator Core Completion - Unit
2 9/30/2011 12/1/2011 No No 71 11-4Q-3: Fabricator Start Fit and Welding of
Core Shroud Assembly - Unit 2 6/30/2011 7/29/2011 No No 72 11-4Q-4: Steam
Generator Fabricator Notice to Contractor of Completion of 1st Steam
Generator Tubing Installation - Unit 2 5/31/2011 1/27/2012 No No 6 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 73 11-4Q-5: Reactor Coolant Loop Pipe - Shipment of Equipment to Site -
Unit 2 12-4Q 12/31/2012 13-1Q 1/31/2013 +1 Month(s) No No Due to schedule
refinement and review. 74 11-4Q-6: Control Rod Drive Mechanism - Ship
Remainder of Equipment (Latch Assembly & Rod Travel Housing) to Head
Supplier - Unit 2 12/31/2011 7/16/2012 No No 75 11-4Q-7: Pressurizer
Fabricator Notice to Contractor of Welding of Lower Shell to Bottom Head
Completion - Unit 2 10/31/2010 12/22/2011 No No 76 11-4Q-8: Steam Generator
Fabricator Notice to Contractor of Completion of 2nd Steam Generator Tubing
Installation - Unit 2 6/30/2011 5/4/2012 No No 77 11-4Q-9: Design Finalization
Payment 14 10/31/2011 10/31/2011 No No 78 12-1Q-1: Set module CA04 for Unit 2
12-1Q 1/27/2012 13-1Q 1/17/2013 +12 Month(s) No No Due to schedule refinement
and review. 79 12-1Q-2: Passive Residual Heat Removal Heat Exchanger
Fabricator Notice to Contractor of Final Post Weld Heat Treatment - Unit 2
6/30/2010 5/24/2011 No No 80 12-1Q-3: Passive Residual Heat Removal Heat
Exchanger Fabricator Notice to Contractor of Completion of Tubing - Unit 2
1/31/2011 5/29/2012 No No 81 12-1Q-4: Polar Crane Fabricator Notice to
Contractor of Girder Fabrication Completion - Unit 2 12-1Q 2/28/2012 12-4Q
10/31/2012 +8 Month(s) No No Due to schedule refinement and review. 82
12-1Q-5: Turbine Generator Fabricator Notice to Contractor Condenser Ready to
Ship - Unit 3 13-3Q 8/31/2013 13-3Q 7/31/2013 -1 Month(s) No No Schedule
ahead of plan. 83 12-2Q-1: Set Containment Vessel ring #1 for Unit 2 12-2Q
4/3/2012 13-2Q 5/16/2013 +13 Month(s) No No Due to schedule refinement and
review. Appendix 1 VC Summer Units 2 and 3 South Carolina Electric & Gas
Company Color Legend Completed Completed this Quarter Movement in Days Only
Based on April 1,2009 Performance Measurement Baseline Schedule 12-3Q 7 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 84 12-2Q-2: Reactor Coolant Pump Fabricator Delivery of Casings to Port
of Export - Unit 2 12-1Q 3/31/2012 12-4Q 10/31/2012 +7 Month(s) No No Due to
schedule refinement and review. 85 12-2Q-3: Reactor Coolant Pump Fabricator
Notice to Contractor of Stator Core Completion - Unit 3 13-3Q 8/31/2013 13-2Q
6/30/2013 -2 Month(s) No No Schedule ahead of plan. 86 12-2Q-4: Reactor
Vessel Fabricator Notice to Contractor of Receipt of Core Shell Forging -
Unit 3 9/30/2012 3/29/2012 No No 87 12-2Q-5: Contractor Notified that
Pressurizer Fabricator Performed Cladding on Bottom Head - Unit 3 1/31/2013
11/9/2011 No No 88 12-3Q-1: Set Nuclear Island structural module CA03 for
Unit 2 12-3Q 8/30/2012 13-3Q 9/12/2013 +13 Month(s) No No Due to schedule
refinement and review. 89 12-3Q-2: Squib Valve Fabricator Notice to
Contractor of Completion of Assembly and Test for Squib Valve Hardware - Unit
2 5/31/2012 5/10/2012 No No 90 12-3Q-3: Accumulator Tank Fabricator Notice to
Contractor of Satisfactory Completion of Hydrotest - Unit 3 12-4Q 12/31/2012
13-3Q 7/31/2013 +7 Month(s) No No Due to schedule refinement and review. 91
12-3Q-4: Polar Crane Fabricator Notice to Contractor of Electric Panel
Assembly Completion - Unit 2 12-3Q 7/31/2012 13-2Q 4/30/2013 +9 Month(s) No
No Due to schedule refinement and review. 92 12-4Q-1: Start containment large
bore pipe supports for Unit 2 12-2Q 4/9/2012 13-3Q 9/12/2013 +17 Month(s) No
No Due to schedule refinement and review. 93 12-4Q-2: Integrated Head Package
- Shipment of Equipment to Site - Unit 2 12-4Q 10/31/2012 13-2Q 6/30/2013 +8
Month(s) No No Due to schedule refinement and review. Appendix 1 VC Summer
Units 2 and 3 South Carolina Electric & Gas Company Color Legend
Completed Completed this Quarter Movement in Days Only Based on April 1,2009
Performance Measurement Baseline Schedule 12-3Q 8 of 13
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Tracking ID Order
No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 94 12-4Q-3: Reactor Coolant Pump Fabricator Notice to Contractor of
Final Stator Assembly Completion - Unit 2 12-4Q 11/30/2012 13-3Q 9/30/2013
+10 Month(s) No No Due to delay in predecessor schedule activities. 95
12-4Q-4: Steam Generator Fabricator Notice to Contractor of Completion of 2nd
Steam Generator Tubing Installation - Unit 3 13-2Q 5/31/2013 13-2Q 4/30/2013
-1 Month(s) No No Schedule ahead of plan. 96 12-4Q-5: Steam Generator
Fabricator Notice to Contractor of Satisfactory Completion of 1st Steam
Generator Hydrotest - Unit 2 12-2Q 5/31/2012 13-2Q 4/30/2013 +11 Month(s) No
No Due to schedule refinement and review. 97 13-1Q-1: Start concrete fill of
Nuclear Island structural modules CA01 and CA02 for Unit 2 13-1Q 2/26/2013
14-2Q 5/14/2014 +15 Month(s) No No Due to schedule refinement and review. 98
13-1Q-2: Passive Residual Heat Removal Heat Exchanger - Delivery of Equipment
to Port of Entry - Unit 2 12-2Q 4/30/2012 12-4Q 12/31/2012 +8 Month(s) No No
Due to schedule refinement and review. 99 13-1Q-3: Refueling Machine Fabricator
Notice to Contractor of Satisfactory Completion of Factory Acceptance Test -
Unit 2 13-1Q 2/28/2013 13-3Q 7/31/2013 +5 Month(s) No No Due to delay in
predecessor schedule activities. 100 13-1Q-4: Deliver Reactor Vessel
Internals to Port of Export - Unit 2 13-3Q 7/31/2013 14-2Q 4/30/2014 +9
Month(s) No No Due to schedule refinement and review. 101 13-2Q-1: Set Unit 2
Containment Vessel #3 13-2Q 4/17/2013 14-3Q 7/22/2014 +15 Month(s) No No Due
to schedule refinement and review. 102 13-2Q-2: Steam Generator - Contractor
Acceptance of Equipment at Port of Entry - Unit 2 13-1Q 3/31/2013 13-3Q
7/31/2013 +4 Month(s) No No Due to schedule refinement and review. 103
13-2Q-3: Turbine Generator Fabricator Notice to Contractor Turbine Generator
Ready to Ship - Unit 2 13-2Q 4/30/2013 13-2Q 5/31/2013 +1 Month(s) No No Due
to schedule refinement and review. 104 13-2Q-4: Pressurizer Fabricator Notice
to Contractor of Satisfactory Completion of Hydrotest - Unit 3 14-1Q
2/28/2014 13-4Q 12/31/2013 -2 Month(s) No No Schedule ahead of plan. Appendix
1 VC Summer Units 2 and 3 South Carolina Electric & Gas Company Color
Legend Completed Completed this Quarter Movement in Days Only Based on April
1,2009 Performance Measurement Baseline Schedule 12-3Q 9 of 13
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Tracking ID Order
No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 105 13-2Q-5: Polar Crane - Shipment of Equipment to Site - Unit 2 13-2Q
5/31/2013 13-4Q 11/30/2013 +6 Month(s) No No Due to schedule refinement and
review. 106 13-2Q-6: Receive Unit 2 Reactor Vessel on site from fabricator
13-2Q 5/20/2013 13-1Q 1/31/2013 -4 Month(s) No No Schedule ahead of plan. 107
13-3Q-1: Set Unit 2 Reactor Vessel 13-2Q 6/18/2013 14-2Q 5/21/2014 +11
Month(s) No No Due to schedule refinement and review. 108 13-3Q-2: Steam
Generator Fabricator Notice to Contractor of Completion of 2nd Channel Head
to Tubesheet Assembly Welding - Unit 3 13-4Q 12/31/2013 13-4Q 11/30/2013 -1
Month(s) No No Schedule ahead of plan. 109 13-3Q-3: Reactor Coolant Pump
Fabricator Notice to Contractor of Final Stator Assembly Completion - Unit 3
14-3Q 8/31/2014 14-4Q 10/31/2014 +2 Month(s) No No Due to schedule refinement
and review. 110 13-3Q-4: Reactor Coolant Pump - Shipment of Equipment to Site
(2 Reactor Coolant Pumps) - Unit 2 13-3Q 9/30/2013 13-3Q 8/31/2013 -1
Month(s) No No Schedule ahead of plan. 111 13-3Q-5: Place first nuclear concrete
for Unit 3 13-3Q 8/1/2013 13-4Q 10/9/2013 +2 Month(s) No No Due to schedule
refinement and review. 112 13-4Q-1: Set Unit 2 Steam Generator 13-3Q 9/9/2013
14-4Q 10/21/2014 +13 Month(s) No No Due to schedule refinement and review.
113 13-4Q-2: Main Transformers Ready to Ship - Unit 2 13-3Q 9/30/2013 13-3Q
9/30/2013 No No 114 13-4Q-3: Complete Unit 3 Steam Generator Hydrotest at
fabricator 14-1Q 2/28/2014 14-2Q 5/31/2014 +3 Month(s) No No Due to schedule
refinement and review. 115 13-4Q-4: Set Unit 2 Containment Vessel Bottom Head
on basemat legs 11-4Q 11/21/2011 12-4Q 12/4/2012 +13 Month(s) No No Due to
schedule refinement and review. 10 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 116 14-1Q-1: Set Unit 2 Pressurizer Vessel 14-1Q 1/24/2014 14-2Q
6/12/2014 +5 Month(s) No No Due to schedule refinement and review. 117
14-1Q-2: Reactor Coolant Pump Fabricator Notice to Contractor of Satisfactory
Completion of Factory Acceptance Test - Unit 3 15-1Q 2/28/2015 15-1Q
3/31/2015 +1 Month(s) No No Due to schedule refinement and review. 118
14-1Q-3: Deliver Reactor Vessel Internals to Port of Export - Unit 3 15-2Q
6/30/2015 15-3Q 7/31/2015 +1 Month(s) No No Due to schedule refinement and
review. 119 14-1Q-4: Main Transformers Fabricator Issue PO for Material -
Unit 3 14-2Q 4/30/2014 15-1Q 2/28/2015 +10 Month(s) No No Due to schedule
refinement and review. 120 14-2Q-1: Complete welding of Unit 2 Passive
Residual Heat Removal System piping 14-1Q 3/19/2014 15-1Q 1/20/2015 +10
Month(s) No No Due to schedule refinement and review. 121 14-2Q-2: Steam
Generator - Contractor Acceptance of Equipment at Port of Entry - Unit 3
15-2Q 4/30/2015 15-2Q 4/30/2015 No No 122 14-2Q-3: Refueling Machine -
Shipment of Equipment to Site - Unit 3 14-2Q 5/31/2014 14-4Q 10/31/2014 +5
Month(s) No No Due to schedule refinement and review. 123 14-3Q-1: Set Unit 2
Polar Crane 14-2Q 4/3/2014 15-2Q 5/10/2015 +13 Month(s) No No Due to schedule
refinement and review. 124 14-3Q-2: Reactor Coolant Pumps - Shipment of
Equipment to Site - Unit 3 15-2Q 6/30/2015 15-2Q 6/30/2015 No No 125 14-3Q-3:
Main Transformers Ready to Ship - Unit 3 14-3Q 9/30/2014 15-2Q 6/30/2015 +9
Month(s) No No Due to schedule refinement and review. 126 14-4Q-1: Spent Fuel
Storage Rack - Shipment of Last Rack Module - Unit 3 14-4Q 12/31/2014 14-4Q
12/31/2014 No No 127 15-1Q-1: Start electrical cable pulling in Unit 2
Auxillary Building 14-4Q 12/26/2014 15-1Q 1/2/2015 +1 Month(s) No No Due to
schedule refinement and review. Appendix 1 VC Summer Units 2 and 3 South
Carolina Electric & Gas Company Color Legend Completed Completed this
Quarter Movement in Days Only Based on April 1,2009 Performance Measurement
Baseline Schedule 12-3Q 11 of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 128 15-1Q-2: Complete Unit 2 Reactor Coolant System cold hydro 15-3Q
8/3/2015 16-1Q 1/15/2016 +5 Month(s) No No Due to logic refinement and review
of start up schedule. 129 15-2Q-1: : Activate class 1E DC power in Unit 2
Auxilary Building. 15-1Q 3/5/2015 15-2Q 4/28/2015 +1 Month(s) No No Due to
logic refinement and review of start up schedule. 130 15-3Q-1: : Complete
Unit 2 hot functional test. 15-3Q 9/21/2015 16-2Q 5/15/2016 +8 Month(s) No No
Due to logic refinement and review of start up schedule. 131 15-3Q-2: Install
Unit 3 ring 3 for containment vessel 15-3Q 7/30/2015 15-1Q 3/15/2015 -4
Month(s) No No Schedule ahead of plan. 132 15-4Q-1: Load Unit 2 nuclear fuel
15-4Q 10/28/2015 16-4Q 10/13/2016 +12 Month(s) No No Due to logic refinement
and review of start up schedule. 133 16-1Q-1: Unit 2 Substantial Completion
16-2Q 4/1/2016 17-1Q 3/15/2017 +11 Month(s) No No Due to logic refinement and
review of start up schedule. 134 16-2Q-1: Set Unit 3 Reactor Vessel 15-4Q
10/1/2015 15-2Q 4/24/2015 -6 Month(s) No No Schedule ahead of plan. 135
16-3Q-1: Set Unit 3 Steam Generator #2 15-4Q 12/22/2015 15-3Q 9/11/2015 -3
Month(s) No No Schedule ahead of plan. 136 16-4Q-1: Set Unit 3 Pressurizer
Vessel 16-2Q 5/16/2016 15-2Q 5/1/2015 -12 Month(s) No No Schedule ahead of
plan. 137 16-4Q-1: Complete welding of Unit 3 Passive Residual Heat Removal
System piping 16-2Q 6/20/2016 15-4Q 12/9/2015 -6 Month(s) No No Schedule
ahead of plan. 138 17-2Q-1: Set Unit 3 polar crane 16-3Q 7/18/2016 16-2Q
4/11/2016 -3 Month(s) No No Due to logic refinement and review of start up
schedule. Appendix 1 VC Summer Units 2 and 3 South Carolina Electric &
Gas Company Color Legend Completed Completed this Quarter Movement in Days
Only Based on April 1,2009 Performance Measurement Baseline Schedule 12-3Q 12
of 13
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Tracking ID
Order No. 2010-12 Description Order No. 2010-12 Date 12-3Q Targeted Milestone
Completion Date Actual Completion Date Delta Months from Order No. 2010-12
Date Outside +18/-24 Months Contingency? Substantial Completion Date Impact?
Notes 139 17-3Q-1: Start Unit 3 Shield Building roof slab rebar placement
17-1Q 1/16/2017 17-1Q 1/16/2017 No No 140 17-4Q-1: Start Unit 3 Auxiliary
Building electrical cable pulling 17-2Q 4/6/2017 17-1Q 1/26/2017 -3 Month(s)
No No Due to logic refinement and review of start up schedule. 141 18-1Q-1:
Activate Unit 3 Auxiliary Building class 1E DC power 17-2Q 6/9/2017 16-2Q
5/3/2016 -13 Month(s) No No Due to logic refinement and review of start up
schedule. 142 18-2Q-1: Complete Unit 3 Reactor Coolant System cold hydro
18-1Q 1/1/2018 17-1Q 2/6/2017 -11 Month(s) No No Due to logic refinement and
review of start up schedule. 143 18-2Q-1: Complete Unit 3 hot functional test
18-1Q 2/15/2018 17-2Q 6/8/2017 -8 Month(s) No No Due to logic refinement and
review of start up schedule. 144 18-3Q-1: Complete Unit 3 nuclear fuel load
18-3Q 7/31/2018 17-4Q 11/20/2017 -8 Month(s) No No Due to logic refinement and
review of start up schedule. 145 18-4Q-1: Begin Unit 3 full power operation
18-4Q 10/31/2018 18-2Q 4/27/2018 -6 Month(s) No No Due to logic refinement
and review of start up schedule. 146 19-1Q-1: Unit 3 Substantial Completion
19-1Q 1/1/2019 18-2Q 5/15/2018 -8 Month(s) No No Due to logic refinement and
review of start up schedule. SUMMARY Total Milestones Completed 79 out of 146
= 54% Milestone Movement - Order No. 2010-12 vs. 12-3Q: a) Forward Movement
42 out of 146 = 29% b) Backward Movement 20 out of 146 = 14% Milestones
Within +12 to +17 Month range 12 out of 146 = 8% Appendix 1 VC Summer Units 2
and 3 South Carolina Electric & Gas Company Color Legend Completed
Completed this Quarter Movement in Days Only Based on April 1,2009
Performance Measurement Baseline Schedule 12-3Q 13 of 13
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APPENDIX 2
V. C. Summer Nuclear Station Units 2 & 3
Quarterly Report to the South Carolina Office of Regulatory Staff
Submitted by South Carolina Electric & Gas Company
Pursuant to Public Service Commission Order No. 2009-104(A)
Quarter Ending September 30, 2012
Appendix 2 is an updated and expanded version of the information contained in the capital cost schedule approved by the Commission in Order No. 2011-345.
Appendix 2 shows:
1. The actual expenditures on the project by plant cost category through the current period.
2. The changes in capital costs reflecting the Company’s current forecast of expenditures on the project for each future period by plant cost category. In updating its cost projections the Company has used the current construction schedule for the project and the Commission-approved inflation indices as set forth in Appendix 4 to this report.
3. The cumulative CWIP for the project and the balance of CWIP that is not yet reflected in revised rates.
4. The current rate for calculating AFUDC computed as required under applicable FERC regulations.
The Cumulative Project Cash Flow target as approved in Order No. 2011-345 and as updated for escalation and other Commission-approved adjustments is found under the heading “Per Order 2011-345 Adjusted.” The adjustments reflect:
1. Changes in inflation indices.
2. Budget Carry-Forward Adjustments used, where appropriate to track the effect of lower-than-expected cumulative costs on the future cumulative cash flow of the project.
Appendix 2 also shows the cumulative cash flow for the project based on actual expenditures to date and the current construction schedule and forecast of year-by-year costs going forward. This information is found under the heading “Actual through September 2012 plus Projected.”
25
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1 Appendix 2 2
3 RESTATED and UPDATED CONSTRUCTION EXPENDITURES 4 (Thousands of $) 5 6 V.C.
Summer Units 2 and 3 - Summary of SCE&G Capital Cost Components 7 8 9 Per
Order 2011-345 Adjusted Total 2007 2008 2009 2010 2011 2012 2013 2014 2015
2016 2017 2018 10 11 Annual Project Cash Flow(per order) 5,531,259 21,723
100,905 340,003 398,552 497,994 856,993 871,748 664,760 627,604 494,501
304,676 351,800 12 Capital Cost Rescheduling Contingency - - - - - - - - - -
- - - 13 Budget Carry-Forward Adjustment - - - - - - - - - - - - - 14 Net
5,531,259 21,723 100,905 340,003 398,552 497,994 856,993 871,748 664,760
627,604 494,501 304,676 351,800 15 16 Adjusted for Change in Escalation
5,052,632 21,723 100,905 340,003 398,552 489,830 776,712 772,021 609,109
567,353 430,389 259,912 286,125 17 18 Cumulative Project Cash Flow(Target)
21,723 122,628 462,631 861,183 1,351,013 2,127,725 2,899,745 3,508,854
4,076,207 4,506,596 4,766,508 5,052,632 19 20 Actual through September 2012*
plus Projected 21 Projected Actual 22 Plant Cost Categories Total 2007 2008
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 23 Fixed with No Adjustment
24 Firm with Fixed Adjustment A 25 Firm with Fixed Adjustment B 26 Firm with
Indexed Adjustment 27 Actual Craft Wages 28 Non-Labor Costs 29 Time &
Materials 30 Owners Costs 31 Transmission Costs 329,512 - 26 724 927 11,964
64,792 60,627 60,407 68,651 60,059 1,335 - 32 33 Total Base Project
Costs(2007 $) 4,553,355 21,723 97,386 319,073 374,810 314,977 525,628 792,268
867,478 652,235 381,977 149,243 56,557 34 35 Total Project Escalation 930,287
- 3,519 20,930 23,741 34,084 68,711 141,285 223,971 197,280 130,854 61,727
24,184 36 37 Total Revised Project Cash Flow 5,483,642 21,723 100,905 340,003
398,551 349,061 594,340 933,553 1,091,448 849,515 512,831 210,970 80,741 38
39 Cumulative Project Cash Flow(Revised) 21,723 122,629 462,632 861,183
1,210,244 1,804,583 2,738,136 3,829,585 4,679,100 5,191,931 5,402,901
5,483,642 40 41 AFUDC(Capitalized Interest) 216,764 645 3,497 10,564 17,150
14,218 16,131 31,544 43,020 41,558 24,471 11,497 2,470 42 43 Gross
Construction 5,700,406 22,368 104,403 350,567 415,701 363,278 610,470 965,097
1,134,468 891,073 537,303 222,467 83,211 44 45 Construction Work in Progress
22,368 126,771 477,338 893,039 1,256,317 1,866,787 2,831,885 3,966,353
4,857,425 5,394,728 5,617,194 5,700,406 46 47 CWIP Currently in Rates
1,536,466 48 49 September 30, 2012 Actual Incremental CWIP Not Currently in
Rates 122,983 50 51 *Applicable index escalation rates for 2012 are
estimated. Escalation is subject to restatement when actual indices for 2012
are final. 52 53 Notes: 54 2012-2018 AFUDC rate applied 5.28% 55 56 The AFUDC
rate applied is the current SCE&G rate. AFUDC rates can vary with changes
in market interest rates, 57 SCE&G's embedded cost of capital,
capitalization ratios, construction work in process, and SCE&G's
short-term debt outstanding. CONFIDENTIAL
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APPENDIX 3
V. C. Summer Nuclear Station Units 2 & 3
Quarterly Report to the South Carolina Office of Regulatory Staff
Submitted by South Carolina Electric & Gas Company
Pursuant to Public Service Commission Order No. 2009-104(A)
Quarter Ending September 30, 2012
For comparison purposes, Appendix 3 provides the schedule of capital costs for the project which was approved by the Commission in Order No. 2011-345 as the Approved Capital Cost of the Units, pursuant to S.C. Code Ann. § 58-33-270(B)(2). Appendix 3 also reflects the forecast of AFUDC expense based on these adjusted schedules and the AFUDC rates that were current at the time of Order No. 2011-345. Appendix 3 is intended to provide a fixed point of reference for future revisions and updating. While the schedule of costs contained on Appendix 3 is subject to revision for escalation, changes in AFUDC rates and amounts, capital cost scheduling contingencies and other contingency adjustments as authorized in Order No. 2009-104(A), no such adjustments have been made to the schedules presented here.
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Appendix 3
RESTATED and UPDATED CONSTRUCTION EXPENDITURES (Thousands of $) V.C. Summer
Units 2 and 3 - Summary of SCE&G Capital Cost Components Per Order
2011-345 Actual Projected Plant Cost Categories Total 2007 2008 2009 2010
2011 2012 2013 2014 2015 2016 2017 2018 Fixed with No Adjustment Firm with
Fixed Adjustment A Firm with Fixed Adjustment B Firm with Indexed Adjustment
Actual Craft Wages Non-Labor Costs Time & Materials Owners Costs
Transmission Costs 321,591 - 26 724 884 7,252 7,775 12,095 29,822 35,236
43,035 73,678 111,064 Total Base Project Costs(2007 $) 4,270,404 21,723
97,386 319,073 377,225 440,602 696,093 669,056 483,136 438,767 323,231
193,183 210,926 Total Project Escalation 1,260,855 - 3,519 20,930 21,327
57,391 160,900 202,693 181,623 188,837 171,270 111,492 140,874 Total Revised
Project Cash Flow 5,531,259 21,723 100,905 340,003 398,552 497,994 856,993
871,748 664,760 627,604 494,501 304,676 351,800 Cumulative Project Cash
Flow(Revised) 21,723 122,629 462,632 861,184 1,359,178 2,216,171 3,087,919
3,752,678 4,380,283 4,874,784 5,179,460 5,531,259 AFUDC(Capitalized Interest)
255,684 645 3,497 10,564 17,150 24,188 32,098 42,559 37,585 30,731 21,543
17,561 17,564 Construction Work in Progress 22,368 126,771 477,338 893,040
1,415,221 2,304,312 3,218,618 3,920,963 4,579,298 5,095,342 5,417,579
5,786,943 CONFIDENTIAL
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APPENDIX 4
V. C. Summer Nuclear Station Units 2 & 3
Quarterly Report to the South Carolina Office of Regulatory Staff
Submitted by South Carolina Electric & Gas Company
Pursuant to Public Service Commission Order No. 2009-104(A)
Quarter Ending September 30, 2012
Appendix 4 shows the changes in the inflation indices approved in Order No. 2009-104(A). Included is a ten year history of the Handy-Whitman All Steam Index, South Atlantic Region; the Handy-Whitman All Steam and Nuclear Index, South Atlantic Region; the Handy-Whitman All Transmission Plant Index, South Atlantic Region; and the Chained GDP Index. The change in the relevant indices from the Combined Application is also provided.
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Appendix 4,
Chart A Inflation Indices, Chart A HW All Steam Generation Plant Index, July
2012 Year Index Yr/Yr change Three Year Average Five Year Average Ten Year
Average 2012 584 1.92% 3.82% 3.60% 4.67% 2011 573 4.75% 2.31% 4.75% 2010 547
4.79% 3.78% 5.31% 2009 522 -2.61% 4.74% 5.50% 2008 536 9.16% 8.13% 7.35% 2007
491 7.68% 6.99% 5.74% 2006 456 7.55% 6.64% 4.75% 2005 424 5.74% 4.49% 2004
401 6.65% 3.50% 2003 376 1.08% 2002 372 2.76% 2001 362 BLRA Filing Order
2010-12 Order 2011-345 Update Jul-07 Jan-09 Jul-10 Jul-12 HW All Steam Index:
One year 7.68% 4.83% 4.79% 1.92% Five Year 5.74% 7.19% 5.31% 3.60%
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Appendix 4,
Chart B Inflation Indices, Chart B HW All Steam and Nuclear Generation Plant
Index, July 2012 Year Index Yr/Yr change Three Year Average Five Year Average
Ten Year Average 2012 584 2.10% 3.82% 3.64% 4.70% 2011 572 4.76% 2.31% 4.76%
2010 546 4.60% 3.78% 5.32% 2009 522 -2.43% 4.82% 5.55% 2008 535 9.18% 8.15%
7.37% 2007 490 7.69% 7.00% 5.75% 2006 455 7.57% 6.66% 4.77% 2005 423 5.75%
4.50% 2004 400 6.67% 3.50% 2003 375 1.08% 2002 371 2.77% 2001 361 BLRA Filing
Order 2010-12 Order 2011-345 Update Jul-07 Jan-09 Jul-10 Jul-12 HW All
Steam/Nuclear Index: One year 7.69% 4.84% 4.60% 2.10% Five Year 5.75% 7.20%
5.32% 3.64%
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Appendix 4,
Chart C Inflation Indices, Chart C HW All Transmission Plant Index, July 2012
Year Index Yr/Yr change Three Year Average Five Year Average Ten Year Average
2012 584 -0.17% 3.25% 2.56% 4.71% 2011 585 4.84% 1.30% 4.36% 2010 558 5.08%
2.71% 5.23% 2009 531 -6.02% 3.96% 5.48% 2008 565 9.07% 9.02% 8.73% 2007 518
8.82% 8.11% 6.86% 2006 476 9.17% 8.58% 5.25% 2005 436 6.34% 5.43% 2004 410
10.22% 3.59% 2003 372 -0.27% 2002 373 0.81% 2001 370 BLRA Filing Order
2010-12 Order 2011-345 Update Jul-07 Jan-09 Jul-10 Jul-12 HW All Transmission
Plant Index One year 8.82% 7.41% 5.08% -0.17% Five Year 6.86% 8.60% 5.23%
2.56%
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Appendix 4
Inflation Indices, Chart D GDP Chained Price Index, 2012 SERIESTYPE UNIT
SHORT LABEL 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Chained
Price Index--Gross Domestic Product U.S. Macro - 10 Year Baseline (2005=100)
Chained price index-gross domestic product , Source: BEA , Units: index-
2005=100.0 90.65 92.11 94.10 96.77 100.00 104.21 105.68 107.82 109.66 110.23
112.74 114.83 Annual Percent change 2.26% 1.61% 2.16% 2.84% 3.34% 4.21% 1.41%
2.02% 1.71% 0.52% 2.28% 1.85% 3-Year Annual Percent change 2.01% 2.01% 2.20%
2.78% 3.46% 2.98% 2.54% 1.71% 1.42% 1.50% 1.55% 5-Year Annual Percent change
2.21% 2.44% 2.83% 2.79% 2.76% 2.53% 1.97% 1.59% 1.67% 10-Year Annual Percent
change 2.23% Consumer Price Index, All-Urban U.S. Macro - 10 Year Baseline
Index Consumer price index, all-urban , Source: BLS , Units: - 1982-84=1.00
1.77 1.80 1.84 1.89 1.95 2.02 2.07 2.14 2.13 2.17 2.23 2.29 Percent change 2.82%
1.60% 2.30% 2.67% 3.37% 3.23% 2.86% 3.21% -0.47% 1.88% 2.76% 2.69% 3-Year
Annual Percent change 2.59% 2.24% 2.19% 2.78% 3.09% 3.15% 3.10% 1.85% 1.53%
1.38% 2.44% 5-Year Annual Percent change 2.55% 2.55% 2.63% 2.88% 3.07% 2.43%
2.13% 2.04% 2.01% 10-Year Annual Percent change 2.33% 2.44% Producer Price
Index--Finished Goods U.S. Macro - 10 Year Baseline (1982=1.0) Producer price
index-finished goods , Source: BLS , Units: index- 1982=1.0 1.41 1.39 1.43
1.49 1.56 1.60 1.67 1.76 1.71 1.79 1.89 1.93 Percent change 1.94% -1.30%
3.18% 3.98% 4.70% 2.56% 4.38% 5.39% -2.84% 4.68% 5.59% 2.12% 3-Year Annual
Percent change 1.44% 1.26% 1.93% 3.95% 3.74% 3.87% 4.10% 2.24% 2.34% 2.40%
4.12% 5-Year Annual Percent change 2.29% 2.48% 2.60% 3.76% 4.20% 2.79% 2.79%
3.39% 2.94% 10-Year Annual Percent change 2.99% 3.35% BLRA Filing Order
2010-12 Order 2011-345 Update Jul-07 Jan-09 Jul-10 Jul-12 GDP Chained Price
Index One year 2.66% 2.24% 0.43% 1.85% Five Year 2.81% 2.86% 1.97% 1.67%
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