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Scana CEO to step down after failed nuclear project
October 31, 2017 / 1:30 PM / 18 days ago

Scana CEO to step down after failed nuclear project

(Reuters) - Scana Corp’s chief executive, Kevin Marsh, is stepping down as the utility company grapples with billions of dollars in cost overruns tied to an abandoned nuclear project.

The company’s shares fell 3.7 percent to $44.21 in morning trading on Tuesday.

The project known as V.C. Summer, which was majority-owned by Scana, was ditched in July after estimated costs to build two nuclear reactors spiraled to as much as $24 billion.

Chief Financial Officer Jimmy Addison will take over the top job from Marsh, effective Jan. 1, Scana said on Tuesday.

The failed nuclear project also led to the resignation of Santee Cooper CEO Lonnie Carter in August. Santee, a South Carolina-based utility, had partnered with Scana on the construction of the reactors.

The reactors were proposed a decade ago when U.S. policymakers expected more than a dozen new nuclear power plants to provide carbon-free electricity.

In the years since, however, a shale revolution unleashed a glut of cheaper natural gas and the Fukushima accident in Japan raised fresh safety concerns. The project had cost $9 billion before being scrapped.

Reporting by John Benny and Ahmed Farhatha in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva

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