The infamous “nuclear hole in the ground” in South Carolina just got a potential $2.7B lifeline, as Santee Cooper signed a tentative deal to let Brookfield Asset Management finish what couldn’t be done in 2017. (SC Daily Gazette)
The bailout: If the deal closes, Brookfield’s cash would wipe out $2.7B of debt currently weighing down Santee Cooper ratepayers—effectively paying off the mortgage on a house that was never built—while allowing the utility to keep a 25% ownership stake to secure future power.
The partner: Brookfield, with its $1T portfolio, is seen as one of the few players with pockets deep enough to resurrect the V.C. Summer expansion, a project so disastrous it was abandoned 8 years ago after burning through $9B and landing executives in prison.
Don't pop the champagne yet: This is currently just a Memorandum of Understanding (MOU), meaning the actual check won't clear until Brookfield finishes feasibility studies and makes a final investment decision around June.