South Carolina Electric & Gas purchased a natural gas-fired power plant in Sandy Run following the failure of its joint nuclear project with Santee Cooper.
SCE&G announced in November 2017 it is buying the 540-megawatt Columbia Energy Center for $180 million.
The plant will make up for about 40 percent of the power the nuclear plant was supposed to provide, company officials said during a news conference.
The purchase of the plant will fall on the shareholders of SCANA Corp., the parent company of SCE&G, and not customers, company officials said.
The utility also plans to add 100 megawatts of solar power to its system.
The company says if its proposal is adopted, it will not need to add new generating capacity for several years to come.
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SCE&G has been under fire since the utility and its state-owned partner Santee Cooper abandoned the project at the V.C. Summer Nuclear Station on July 31.
The two have spent more than $9 billion on the failed project. Customers have been charged nearly $2 billion of that.
Calhoun County Development Commission Executive Director Pat Black said, "We are proud that a Calhoun County company such as Columbia Energy is a part of the solution and not a part of the problem.
"South Carolina Electric and Gas and SCANA are in a dilemma right now, and they are working their way out of it."
Black praised SCE&G President Keller Kissam, a Calhoun County native, for providing the leadership needed for SCE&G to get back on track.
The Columbia Energy Center employs 19. SCE&G has been its main customer.
The gas-fired plant is a result of Eastman Chemical’s search for more efficient sources of energy for its Calhoun County operation. Not wanting to enter into the business of energy production, the company initiated talks with potential energy providers.
In October 2000, Eastman partnered with SkyGen Energy LLC to build the Columbia Energy Center. Shortly after, SkyGen was purchased by Calpine.
Calpine broke ground on the $365 million plant in September 2001. Calpine began operations in May 2004.
Calpine sold the plant to NatGen Southeast Power in 2014. It’s a subsidiary of LS Power Equity Advisors.
In addition to providing electricity, the plant provides steam to DAK Americas, which purchased most of Eastman Chemical’s Calhoun County presence.
"We look forward to working with these new owners as they acquire and operate the site," DAK Americas spokesman Ricky Lane said.
Contact the writer: gzaleski@timesanddemocrat.com or 803-533-5551. Follow on Twitter @ZaleskiTD.
Gene Zaleski
T&D Staff Writer
