Santee Cooper and South Mississippi Electric Power Association said a letter of intent has been jointly executed, which provides for negotiations for the development of a power purchase agreement wherein South Mississippi may potentially secure a minority interest in Santee Cooper’s share of new units under construction at V.C. Summer Nuclear Station.
Santee Cooper owns 45 percent of the V.C. Summer expansion, and South Carolina Electric & Gas owns 55 percent.
In 2010, Santee Cooper said it began evaluating its level of ownership percentage in the new nuclear facilities, a review that continues and has been disclosed with rating agencies and other key stakeholders.
The letter of intent provides for the opportunity for South Mississippi Electric to secure 2-7 percent of the capacity and energy output from the generating station, which is roughly 4-14 percent of Santee Cooper’s ownership interest in the two new units. The letter of intent also includes as part of the potential transaction an option for South Mississippi Electric’s future acquisition of a portion of Santee Cooper’s ownership interest.
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