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SouthCarolinaOfficeofRegulatoryStaff

ReviewofSouthCarolinaElectric&GasCompany’s20133rdQuarterReportonV.C.SummerUnits2and3StatusofConstruction

January10,2014

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TableofContents

ExecutiveSummary (1) IntroductionandBackground (3)

ApprovedScheduleReview (5) MilestoneSchedule (5)

HistoricalMilestones (6)FutureMilestones (7)SpecificConstructionActivities (8)CriticalPathActivities (9)Transmission (11)ChangeOrdersandAmendments (13)

LicensingandInspectionActivities (15)

FederalActivities (15) StateActivities (15)

ApprovedBudgetReview (16) CapitalCosts (16) ProjectCashFlow (16) AFUDCandEscalation (18) AnnualRequestforRevisedRates (18)

AdditionalORSMonitoringActivities (19)SummaryofORSVisittoCB&I‐LCFacility (20)ConstructionChallenges (21) StructuralModules (21) ShieldBuildingModules (22) StructuralDesignCompliance (22) InstrumentationandControlDesign (22) OverlappingUnit2&Unit3ConstructionSchedules (23) ManufacturingofMajorEquipment (23)LicenseAmendmentReviews (23)

NotableActivitiesOccurringAfterSeptember30,2013 (24) AccumulatedDeferredIncomeTaxTimingDifference (24) CautionMilestones (24) EquipmentDelivery (25) NRCLicensing (25) SiteFacilities (25) StructuralModules (25) TurbineBuilding (26) Unit3NuclearIsland (26)

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Appendices

AppendixA: DetailedMilestoneScheduleasofSeptember30,2013

AppendixB: CautionMilestones

AppendixC: ConstructionSitePhotographs

AppendixD: LicenseAmendmentRequests

AppendixE: SCE&GBasematConcretePressRelease

Q3‐13 Rev iew P a g e |1

ExecutiveSummary

On November 8, 2013, SCE&G submitted its 2013 3rd Quarter Report related toconstructionofV.C.SummerUnits2&3.TheReportisfiledinCommissionDocketNo.2008‐196‐E and covers thequarter ending September30, 2013. With reference to theBaseLoadReviewAct,ORS’sreviewoftheCompany’sReportfocusesonSCE&G’sabilitytoadheretotheapprovedscheduleandapprovedbudget.

ApprovedScheduleReviewORS reported in its 2013 2nd Quarter Report that SCE&G announced that its

Engineering,ProcurementandConstructioncontractpartners,WestinghouseElectricCompanyand Chicago Bridge and Iron, had preliminarily indicated to SCE&G that the substantialcompletion date of Unit 2 is expected to be delayed until the 4th quarter of 2017 or the 1stquarter of 2018, with the substantial completion date of Unit 3 expected to be delayedsimilarly1.Thispotentialdelayisprimarilyduetochallengesintheprojectschedulerelatedtodelays in sub‐module fabrication and delivery, specifically the CA01 module. CA01 is astructural module which sits inside the containment vessel and forms the refueling canal,steam generator compartments and pressurizer compartment. SCE&G’sMilestone SchedulereflectsadelayintheUnit2substantialcompletiondatefromMarch15,2017toDecember15,2017, and a delay from May 15, 2018 to December 15, 2018 in the Unit 3 substantialcompletiondate.PertheBaseLoadReviewOrder,overallconstructionisconsideredtobeonschedule if the substantial completion dates are not accelerated more than 24 months ordelayedmorethan18months.Whiledelayed,thesubstantialcompletiondatesfallwithintheparametersallowedbytheBaseLoadReviewOrder.AsofSeptember30,2013,92ofthe146milestoneactivitieshadbeencompleted.Sixteenyettobecompletedmilestoneactivitieshadbeendelayedby10monthsormore,withtwomilestonesindicatingadelayof15months.

ORShasidentifiedseveralongoingconstructionchallengesthatposeapotentialriskto

theon‐timecompletionoftheUnits.ORScontinuestomonitortheseareasclosely.Themostsignificantissueisthecontinueddelayinthedeliveryofthestructuralsub‐modules. Despitecontinuing high‐level management and executive focus from Chicago Bridge and Iron,WestinghouseElectricCompanyandSCE&G,thedeliveryandqualityproblemsassociatedwiththese sub‐modules are still not satisfactorily resolved. Delays in these sub‐modules affectalmostallsubsequentcriticalpathsequencesintheconstructionschedule.

1SCE&GhasnotagreedtoanycontractualchangetotheGuaranteedSubstantialCompletionDatesfortheUnits.


ApprovedBudgetReview

The current approved base project cost in 2007 dollars is $4.548 billion. There has

beennoincreaseinthetotalbaseprojectcost(in2007dollars). Withescalationapplied,thetotalcashflowbudgetedfortheprojectis$5.422billion.ThecumulativeamountspentontheprojectasofDecember31,2012was$1.773billion.Attheendof2013,thecumulativeprojectcash flow is forecasted to be approximately $392 million below the capital cost scheduleapproved in Order No. 2012‐884. Due to escalation, an increased project cash flow ofapproximately $87.824 million is necessary to complete the project in 2018. SCE&G hasestimatedthecostsassociatedwiththedelayinthesubstantialcompletiondatesforUnit2andUnit3tobeapproximately$200million.SinceSCE&Ghasnotacceptedresponsibilityforthesecosts, this report includes no increases to the cash flow attributable to the delay in thesubstantial completion dates. As of September 30, 2013, the SCE&G forecasted grossconstructioncostoftheplantis$5.651billionascomparedtotheapprovedgrossconstructioncostof$5.755billion,whichrepresentsadecreaseofapproximately$104million.

AsreportedinORS’s20132ndQuarterReport,SCE&Gfiledapetitionandnoticeforan

allowableexpartecommunicationbriefingtoaddressaregulatoryaccountingissuerelatedtoaccumulateddeferredincometaxesonSeptember9,2013inDocketNo.2013‐336‐E.Thistaxissue arises as a result of the construction of the Units. In short, traditional accounting taxpracticesascompared toaccounting tax treatmentunder theBaseLoadReviewActcreateatimingdifferencethattemporarilycausesSCE&Gincreasedtaxliabilityexposure.Subsequenttotheendofthequarter,theCompanyconductedabriefingbeforetheCommissiononOctober17, 2013 and the Commission approved the Company’s petition in Order No. 2013‐803 onNovember26,2013.


IntroductionandBackground

On March 2, 2009, the Public Service Commission of South Carolina (“Commission”)approvedSouthCarolinaElectric&GasCompany’s(“SCE&G”orthe“Company”)requestfortheconstructionofV.C.SummerNuclearStationUnits2and3(the“Units”)andtheEngineering,ProcurementandConstruction(“EPC”)ContractwithWestinghouseElectricCompany(“WEC”)and Chicago Bridge and Iron (“CB&I”) (collectively referred to as the “Consortium”). CB&IbecameapartytotheEPCContractvia itsacquisitionoftheShawGroup, Inc(“Shaw”). Thisapproval can be found in the Base Load Review Order No. 2009‐104(A) filed in Docket No.2008‐196‐E. On January 21, 2010, the Commission approved the Company’s request to updatemilestonesandcapitalcostschedulesinOrderNo.2010‐12,whichisfiledinDocketNo.2009‐293‐E.OnMay16,2011,theCommissionapprovedSCE&G’spetitionforrevisionsandupdatestocapitalcostschedulesinOrderNo.2011‐345,whichisfiledinDocketNo.2010‐376‐E. OnMay15,2012,SCE&GfiledanapplicationwiththeCommissioninDocketNo.2012‐203‐Eforupdatesandrevisionstoschedulesrelatedtotheconstructionof theUnits. Theserequestedschedulechanges,alongwithanincreasetothebaseprojectcosttotaling$278.05million,wereapprovedbytheCommissioninOrderNo.2012‐884onNovember15,2012.2

TheanticipateddependablecapacityfromtheUnitsisapproximately2,234megawatts(“MW”),ofwhich55%(1,228MW)willbeavailabletoserveSCE&Gcustomers.SouthCarolinaPublic Service Authority (“Santee Cooper”) is currently contracted to receive the remaining45%(1,006MW)oftheelectricoutputwhentheUnitsareinoperation,andispaying45%ofthecostsoftheconstructionoftheUnits.InOctober2011,SCE&GandSanteeCooperexecutedthepermanentconstructionandoperatingagreements for theproject.TheagreementsgrantSCE&Gprimary responsibility for oversight of the constructionprocess andoperationof theUnitsas theycomeonline. OnMarch30,2012, theNuclearRegulatoryCommission (“NRC”)voted to issue SCE&G a Combined Construction and Operating License (“COL”) for theconstructionandoperationoftheUnits.

In 2010, SCE&G reported that Santee Cooper began reviewing its level of ownershipparticipationintheUnits.Sincethen,SanteeCooperhassoughtpartnersinits45%ownership.Santee Cooper signed a Letter of Intent with Duke Energy Carolinas, LLC in 2011. SanteeCooperandDukeEnergyCarolinas,LLCcontinuetonegotiateregardinganownershipshareintheUnits.

OnNovember8,2013,SCE&Gsubmittedits20133rdQuarterReport(“Report”)related

to construction of theUnits. TheReport is filed in CommissionDocketNo. 2008‐196‐E andcoversthequarterendingSeptember30,2013.TheCompany’sReportissubmittedpursuant 2PetitionsforRehearingorReconsiderationwerefiledonbehalfoftheSierraClubandtheSouthCarolinaEnergyUsersCommittee.BothpetitionsweredeniedviaCommissionOrderNo.2013‐5issuedonFebruary14,2013.TheSierraClubandtheSouthCarolinaEnergyUsersCommitteesubsequentlyfiledappealswiththeSupremeCourtofSouthCarolina.Thoseappealsarenowpending.


to S.C. Code Ann. § 58‐33‐277 (Supp. 2012) of the Base Load Review Act (“BLRA”), whichrequirestheReporttoincludethefollowinginformation:

1. Progressofconstructionoftheplant;2. Updatedconstructionschedules;3. Schedules of the capital costs incurred including updates to the information

requiredinSection58‐33‐270(B)(5);4. Updatedschedulesoftheanticipatedcapitalcosts;and5. OtherinformationastheOfficeofRegulatoryStaffmayrequire.

With reference to Section 58‐33‐275(A) of the BLRA, the review by the Office of

RegulatoryStaff(“ORS”)oftheCompany’sReportfocusesonSCE&G’sabilitytoadheretotheapprovedconstructionscheduleandtheapprovedcapitalcostschedule.


ApprovedScheduleReview

MilestoneSchedule

AsofSeptember30,2013,ORSverifiedthatoftheMilestoneSchedule’s146activities: 92milestoneactivitieshavebeencompleted(includes91historicaland1future

milestones) 54milestoneactivitiesareyet tobecompleted (includes11delayedhistorical

and43futuremilestones)

ORSalsoverifiedthatduringthe3rdQuarterof2013: Fivemilestoneactivitieswerescheduledtobecompleted

o Threeofthesemilestoneshavebeencompletedo Twoofthesemilestoneshavenotbeencompleted

PertheBaseLoadReviewOrder,overallconstructionisconsideredtobeonscheduleif

the substantial completion dates are not acceleratedmore than24months or delayedmorethan 18 months. As part of its review of the approved schedule, ORS identifies CautionMilestones.CautionMilestonesarethosethathavebeendelayedtenmonthsorlonger.IfanyMilestone is delayed 16 months or longer, ORS may issue a formal notification to theCommission of the delay. As of the end of the 3rd quarter of 2013, ORS identified that theCompany’s notification of the change in Substantial Completion for the Units resulted in 16milestonesbeingdelayedtenmonthsorlonger.

AppendixAshowsdetailsofSCE&G’sMilestoneScheduleasofSeptember30,2013.A

completelistofCautionMilestones,alongwithdetailsregardingthedelaysprovidedbySCE&Gand theConsortium is attached asAppendixB. ORS continues to reviewandmonitor thesemilestonesclosely.

SCE&G’sMilestoneSchedule,attachedtoitsReportasAppendix1,indicatesthatoverallconstruction supports a substantial completion date of December 15, 2017 for Unit 2 andDecember15,2018forUnit3. Thesubstantialcompletiondates fortheUnitsreflectadelayfromthesubstantialcompletiondatesapprovedbytheCommissioninOrderNo.2012‐884ofMarch 15, 2017 andMay 15, 2018, respectively. While delayed, the substantial completiondates fallwithin theparameters allowedby theBase LoadReviewOrder. ORS continues tomonitorthismatterclosely.

ORS reviews all invoices associated with the Milestone Schedule and during the 3rd

quarter of 2013, there were four invoices paid. ORS reviews invoices to ensure that theinvoicesarepaid inaccordancewithCompanypoliciesandpracticesand inaccordancewiththe termsof theEPCcontract. ORSalso reviews theescalationapplied to these invoices forconsistencywiththeappropriateHandy‐Whitmaninflationindices.


Table1showsthestatusofthe102historicalmilestonesandChart1showsthestatusofall146milestonesforthe3rdquarterof2013andprior.3

Table1:

HistoricalMilestones3rdQuarter2013andPrior102of146TotalMilestones

#of

Milestones%ofAll

Milestones4

CompletedonSchedule 65 44.5%

CompletedEarly 10 6.8%

CompletedBehindSchedulebutWithin18MonthsDeviation 16 11.0%

NotCompleted 11 7.5%

Outside18MonthsDeviation 0 0.0%

TotalHistoricalMilestones 102 69.9%

Chart1:

3ThenumbersreportedbyORSandSCE&Gmayvary. Forreportingpurposes,ORSappliesa30‐day thresholdbeforeamilestone isdeemedacceleratedordelayed. SCE&Gusesathresholdlessthan30days. Forinstance,ifamilestoneisscheduledtobecompletedJune2,2013,and theactualcompletiondate isMay29,2013,SCE&Gdeems themilestoneascompletedonemonthearlysince it iscompleted in a prior calendarmonth. ORSwould report thismilestone as being accomplished on schedule since itwas completedwithin30daysofthescheduledcompletiondate.

4Slightvariancesmayoccurduetorounding.


Table2showsthestatusofthe44futuremilestonesandChart2showsthestatusofall146milestonesforthe4thquarter2013andbeyond.

Table2:

FutureMilestones4thQuarter2013andBeyond44of146TotalMilestones

#of

Milestones%ofAll

Milestones5

CompletedEarly 1 0.7%

ProjectedtobeCompletedonSchedule 6 4.1%

ProjectedtobeCompletedEarly 3 2.1%

ProjectedtobeCompletedBehindSchedulebutWithin18MonthsDeviation 34 23.3%

ProjectedtobeOutside18MonthsDeviation 0 0.0%

TotalFutureMilestones 44 30.1%

Chart2:



SpecificConstructionActivitiesSiteconstructionactivitiescontinue toprogress. Aworkforceofapproximately2,000

WEC/CB&I (including subcontractors) and330 SCE&Gpersonnel is currently on site. Majorconstructionactivitiesduringthe3rdquarterof2013arelistedbelow:

The Unit 2 CA04 module was set in place in the Containment Vessel Bottom Head

(“CVBH”)onSeptember27,2013.TheCA04willhousethelowerportionoftheReactorVessel(“RV”).

Installation of the plates that make up the Unit 2 Containment Vessel (“CV”) Ringscontinued. Unit 2 CV Ring 1 fabrication and installation of internal stiffeners werelargely complete. Weldingwas completed on the seams of the first three courses ofplatesforUnit2CVRing2.Unit3CVBHworkalsocontinuedthroughthequarter.

SignificantprogresswasmadeontheUnit2TurbineBuilding. OneofthethreelowersectionsoftheUnit2MainCondenserwasinstalledinAugust2013,andCH80,amajorstructural module for the turbine building, was installed in September 2013. Theserepresentmajoradvancements towardthecompletionof theUnit2TurbineBuilding.Additional information on this subject can be found in “Notable Activities OccurringAfterSeptember30,2013”laterinthisreport.

Structural work for Cooling Tower 2Awas substantially completed at the end of 3rdquarterof2013. Approximately60%of theprecastpanels forCoolingTower3Aand50%oftheprecastpanelsforCoolingTower3Bhavebeensetintoplace.Electricalandmechanicalworkcontinuedthroughoutthequarter.Theinitialsectionofthebasematfor Cooling Tower 2B was poured while support work continued on the remainingsectionsinpreparationofconcreteplacement.Additionally,thebasematfortheUnit2circulatingwaterpumphousewascompleted.

Progress continued on the CA20 sub‐modules inside the Module Assembly Building(“MAB”).Atotalof44ofthe72CA20sub‐moduleshadbeendeliveredtothesitefromCB&I Lake Charles (“CB&I‐LC”) as of the end of the 3rd quarter of 2013,with five ofthesearrivingonsiteduring the3rdquarterof2013. During the3rdquarterof2013,CB&Icontractorscontinuedrepairingandre‐weldingthemodulesinsidetheMABusingfull penetrationwelds aspreviously detailed in priorORSReports. Thedelivery andassemblyofallstructuralmodules,includingCA20,isacriticalpathactivity.

CB&I‐LC continues to be the focus of intensemanagement attention. Delays in sub‐module fabricationhavecontributed to theanticipateddelay in theUnit2substantialcompletiondate. CB&IhasimplementedanewleadershipteamanddevelopedanewscheduleforUnit2sub‐moduleproduction.Inanefforttoimprovedeliverytimes,CB&Ishifted work, including the CA04 module, the CA03 module, and Shield Building


modules, from CB&I‐LC to other fabricators. Further delays in the sub‐modulefabricationschedule,particularlytheCA01module,mayresultinmilestonesexceedingthe18‐monthdelayallowedbytheBaseLoadReviewOrder.ORScontinuestocloselymonitortheimpactmoduledelayshaveoncostandschedule.

ShipmentofthecompletedsquibvalvesfortheUnitsisonholdastheirmanufactureraddresses anomalies uncovered during qualification testing of the valves anddeficienciesidentifiedbytheNRCindocumentpackagesrelatedtoworkperformedbysub‐contractors.

Photographsof3rdquarterconstructionactivitiesareshowninAppendixC.CriticalPathActivities

Critical path activities are those that drive the construction schedule. Theseassessmentsarebasedonpreviouscriticalpathsandprojectedfuturecriticalpaths.

Unit2CA01Module

Fabricationanddeliveryofthesub‐modulesbeingmanufacturedatCB&I‐LCcontinuesto challenge the schedule. Of the sub‐modules required to be assembled, the CA01moduleremainsoneofthemajorcriticalconcernsandchallengestothescheduleoftheproject.Noneofthesesub‐moduleshavebeencompletedorshippedtothesite.Thereare various options being pursued by SCE&G and the Consortium, including work‐aroundsandre‐sequencingoftheinstallation,toreducetheimpactofthedelayofthesesub‐modules.TheCA01moduleiscurrentlythemostcriticalactivityintheassemblyofthenuclearislandbuildingbecauseitmustbeplacedbeforesettingoftheCVringscanprogressbeyondthefirstring. Thiscriticalpathactivityisbehindscheduleandcouldfurtherdelaythecompletiondate.

Unit2CA20Module

Delaysalsocontinuewith the fabricationanddeliveryof theCA20sub‐modules fromCB&I‐LC.Thesub‐modulesneededtoproceedwiththefinalassemblyofmoduleCA20arenotyetonsite.Thismayimpacttheconstructionoftheshieldbuildingandfurtherdelaytheproject.However,theweldrepairsonthesub‐modules,asdiscussedinORS’s20131stQuarterReport,arenearingcompletion.AdditionalinformationontheUnit2CA20Modulecanbefoundin“NotableActivitiesOccurringAfterSeptember30,2013”laterinthisreport.Thiscriticalpathactivityisbehindschedule.

Unit2ShieldBuildingBecauseoftheproductionandqualityissuesassociatedwithCB&I‐LC,fabricationoftheShield Buildingmodules has been reassigned toNewportNews Industries (“NNI”) inVirginia.MobilizationandpreparationforproductioncontinuedatNNIthroughoutthe


quarter.Althoughfabricationisnowunderway,nosub‐moduleshavebeendeliveredtothesite. Adetailedschedule for theirdelivery isnotyetavailable. Inaddition,workassociated with completing the mock‐ups to field test activities associated with theinstallationoftheshieldbuildingmoduleshasnowbeenscheduledtobecompletedinearly2014.

Unit3Basemat

Significantprogresshasbeenmadeinthisarea.Installationofthereinforcingsteelandthe embedded components continued throughout the quarter with an expectedconcretepourofthebasemattooccurinmid‐October2013.Thisisthecurrentcriticalpath activity for Unit 3 and is on schedule. Additional information on the Unit 3basematcanbefoundin“NotableActivitiesOccurringAfterSeptember30,2013”laterinthisreport.

Unit3ModulesModuleassemblyisafuturecriticalpathactivityforUnit3.AsofSeptember30,2013,arevised sub‐module delivery schedule has been not released for Unit 3. These sub‐modules, and therefore the associated modules, are behind schedule. Additionalinformation on the Unit 3 CA01, CA03, and CA20modules can be found in “NotableActivitiesOccurringAfterSeptember30,2013”laterinthisreport.


Transmission

On February 28, 2011, SCE&G entered into a contract with Pike Electric for thepermitting,engineeringanddesign,procurementofmaterial,andtheconstructionoffour(4)230kilovolt(“kV”)transmissionlinesandassociatedfacilitiesrelatedtotheUnits.Thisprojectwillconsistoftwophases.

Phase 1 consists of construction of two new230 kV transmission lines in support of

Unit2:theVCS1–KillianLineandtheVCS2–LakeMurrayLine#2. TheVCS1–KillianLinewillconnect the existing V.C. Summer Switchyard (“Switchyard 1”) to the Company’s existingKillian Road 230 kV Substation. The VCS2–Lake Murray Line #2 will connect the newly‐constructed Switchyard (“Switchyard 2”) to the Company’s existing Lake Murray 230 kVSubstation.Switchyard2willallowtheconnectionofboththeUnit2andUnit3generatorstothe grid. Also, for Phase 1, two new 230 kV interconnections between Switchyard 1 andSwitchyard2havebeenconstructed.ConstructionofthePhase1linescontinuedduringthe3rdquarterof2013.AsofSeptember30,2013,theVCS1–KillianLinewasnearingcompletionandtheVCS2–LakeMurrayLine#2wasapproximately95%complete.

Phase2consistsofconstructionoftwonew230kVtransmissionlinesandassociated

facilities in support of Unit 3. The construction of these lines and associated facilities wasapprovedinOrderNo.2012‐730.FacilitiesinPhase2aretheVCS2–St.GeorgeLine#1,VCS2–St. George Line #2, and St. George 230 kV Switching Station, and Saluda River 230/115 kVSubstation. Preliminary construction activitieshavebegunon theVCS2–St.GeorgeLines#1and #2 including erosion control measures and spotting and framing of structures.Additionally, the overall engineering layout of the St. George 230 kV Switching Station wascompleted.

BoththeVCS2–St.GeorgeLine#1andVCS2–St.GeorgeLine#2willconnectSwitchyard

2totheyet‐to‐beconstructedSt.George230kVSwitchingStation.Constructionontheselinesbeganduringthequarter;however,constructionoftheSt.George230kVSwitchingStationhasnotyetbegun. A thirdnew230kV interconnectionbetweenSwitchyard1andSwitchyard2willbe required forPhase2. SCE&Ghasacquired the land for theSaludaRiver230/115kVSubstation, to be built adjacent to and interconnect with the VCS2‐St. George lines. Thepreliminary environmental assessment of this site has been completed and lay out of thesubstationisprogressing.

Map 1 shows the geographical location of SCE&G’s new transmission lines and other

associatedfacilitiestosupporttheUnits.


Map1:NewSCE&GTransmissionLinesandFacilities SupportingV.C.SummerUnits2&3


ChangeOrdersandAmendments

Duringthe3rdquarterof2013,noChangeOrdersorAmendmentswereexecuted. NoChange Orders or Amendments have been executed since early 2012, despite continuednegotiationsforfourChangeOrders.

ExecutionofChangeOrder#16hasbeendelayedpendingtheresolutionofaquestionregardingtheapplicationoftheHandy‐Whitmaninflationindices.TheCompanyiswithholdingpaymentofdisputedamountsoninvoicesthatareaffectedbytheseindicespendingresolutionofthismatter.

The secondChangeOrder under negotiationwould incorporatePhase II of the cybersecuritychangespreviouslycataloguedinChangeOrder#14.Thethirdincorporatespotentialdesign changes to the offsite water treatment system. The final Change Order undernegotiationwouldaddressWEC’scostsassociatedwithrecentfederalhealthcarelegislation.

Table3detailsallChangeOrdersandAmendments.AlistofdefinitionsforeachtypeofChangeOrderisfoundbelow.

Contractor Convenience: These changes are requested by the contractor.

They are undertaken at the contractor’s own expense, and are both generallyconsistentwiththecontractandreasonablynecessarytomeetthetermsofthecontract.

Entitlement: ThecontractorisentitledtoaChangeOrderintheeventcertainactionsoccur,includingchangesinlaw,uncontrollablecircumstances,andotheractionsasdefinedinthecontract.

OwnerDirected:ThesechangesarerequestedbytheCompany.


Table3:

ChangeOrdersandAmendmentsNo. Summary CostCategories

InvolvedTypeofChange

DateApproved Status

1OperatortrainingforWECRVSystemsandSimulatortraining

FixedPricewith0%escalation6

OwnerDirected

7/22/2009 Approved

2 LimitedScopeSimulator FirmPriceOwnerDirected

9/11/2009 Approved

3 RepairofParrRoad TimeandMaterialsOwnerDirected

1/21/2010 Approved

4TransferofErectionofCA20Module

fromWECtoShawTargetPricework

shiftingtoFirmPriceContractorConvenience N/A

SupersededbyChangeOrder

No.8

5*SupplementsChangeOrderNo.1*

Increasedtrainingbytwo(2)weeksFixedPricewith0%

escalation6OwnerDirected

5/4/2010 Approved

6 HydraulicNuts FixedPrice OwnerDirected

7/13/2010 Approved

7 St.GeorgeLines#1&2 FirmandTargetPriceCategories

Entitlement 7/13/2010 Approved

8 TargettoFirm/FixedShiftTarget,FirmandFixed

PriceCategoriesOwnerDirected

4/29/2011 Approved

9 SwitchyardLinesReconfiguration FirmandTargetPriceCategories

OwnerDirected

11/30/2010 Approved

10 PrimaveraFixedPricewith0%

escalationOwnerDirected

12/16/2010 Approved

11 COLDelayStudyFixedPrice,butwouldbeappliedtoT&MWorkAllowances

OwnerDirected

2/28/2011 Approved

12 2010HealthCareActCosts(Shaw) Firm Entitlement 11/14/2011 Approved

13 OvationWorkstations NoCostOwnerDirected

3/12/2012 Approved

14 CyberSecurityPhaseIFirmPriceandT&MPrice

Entitlement 3/15/2012 Approved

15 LiquidWasteSystemDischargePiping

FirmPrice OwnerDirected

3/15/2012 Approved

16ResolvesWEC/CB&Iclaimsrelated

toCOLDelay&otheritemsTarget&FirmPrice Entitlement N/A Pending

Amendment#1 IncludesChangeOrders1and2Executedon8/2/2010

Amendment#2 IncorporatesChangeOrders3,5‐11Executedon11/15/2011

Amendment#3 Includesmodifiedinsurancewording Executedon4/30/12

6FixedPricewith0%escalation,butwouldbeappliedtoTimeandMaterialsWorkAllowancesbyaddinganewcategoryforSimulatorInstructortrainingandreducingStartupSupportbyacommensurateamount.


LicensingandInspectionActivities

FederalActivities

As of September 30, 2013, SCE&G has identified the need to submit more than 60LicenseAmendmentRequests(“LAR”)totheNRC.TheexactnumberofLARsrequiredvaries,asasingleLARmayaddressmultipleissues.ALARistheprocessbywhichalicenseerequestschanges to theCOL issuedby theNRC. The licenseemayrequestaPreliminaryAmendmentRequest(“PAR”)toaccompanyaLAR.PARsallowthelicenseetocontinuewithconstructionatits own risk while awaiting final dispensation of the LAR. A total of 19 LARs had beensubmittedthroughtheendofthe3rdquarterof2013withsevenofthesesubmittedduringthequarter. A table of LARs submitted to the NRC, and accompanying PARs, if requested, isattachedasAppendixD.IssuessurroundingtheapprovalofLARsarediscussedinmoredetailinthesectionentitled“ConstructionChallenges.”

The NRC conducts monthly site inspections to monitor construction progress. No

additionalissueswereidentifiedduringthe3rdquarterof2013.OnJuly29,2013theNRCissuedaninspectionreportfortheperiodofApril1,2013to

June30,2013withnofindings.On August 1, 2013, the NRC completed an annual inspection of the Company’s

correctiveactionprogram. Thereportdocumenting the inspectionresultswaspublishedonAugust29,2013.Therewerenofindingsidentifiedduringtheinspection.

OnSeptember30,2013,theNRCcompletedaquarterlyinspectioncoveringtheperiod

ofJuly1,2013throughSeptember30,2013.Additionalinformationonthisinspectioncanbefoundin“NotableActivitiesOccurringAfterSeptember30,2013”laterinthisreport.StateActivities

As of September 30, 2013, there are currently no major state construction‐relatedpermitsoutstanding.


7

ApprovedBudgetReview

ORS’sbudgetreviewincludesananalysisofthe3rdQuarter2013capitalcosts,project

cashflow,escalationandAllowanceforFundsUsedDuringConstruction(“AFUDC”).CapitalCosts

To determine how consistently the Company adheres to the budget approved by the

Commission inOrderNo. 2012‐884,ORS evaluates ninemajor cost categories for variances.Thesecostcategoriesare:

FixedwithNoAdjustment FirmwithFixedAdjustmentA FirmwithFixedAdjustmentB FirmwithIndexedAdjustment ActualCraftWages Non‐LaborCost Time&Materials OwnersCosts TransmissionProjects

ORSmonitors variances due to project changes (e.g., shifts inwork scopes, payment

timetables,constructionscheduleadjustments,ChangeOrders).Attheendofthe3rdquarterof2013,SCE&G’stotalbaseprojectcost(in2007dollars)is$4.548billion.ProjectCashFlow

AsshowninAppendix2oftheCompany’sReport,thecumulativeamountspentonthe

projectasofDecember31,2012was$1.773billion.ThecumulativeamountforecastedtobespentontheprojectbyDecember31,2013is$2.453billion.

WithreferencetoAppendix2,ORSevaluatedthetotalrevisedprojectcashflow(Line

37)withrespecttotheannualprojectcashflow,adjustedforchangesinescalation(Line16).ThisevaluationprovidesacomparisonoftheCompany’scurrentprojectcashflowtothecashflow schedule approved by the Commission in OrderNo. 2012‐884. To produce a commonbasisforthecomparison,Line16adjuststheapprovedcashflowscheduletoreflectthecurrentescalationrates.AsofDecember31,2012,thecomparisonshowstheyearlymaximumannualvariancefromtheapprovedcashflowschedulethroughthelifeoftheproject.Thecomparisonalso shows that the cumulative project cash flow is forecasted to be approximately $392.1


millionunderbudgetattheendof2013.Duetoescalation,atthecompletionoftheprojectin2018 the cumulative project cash flow is forecasted to be approximately $87.8million overbudget.

Table 4 shows the annual and cumulative project cash flows as compared to thoseapprovedinOrderNo.2012‐884.

Table4:

ProjectCashFlowComparison$'sinThousands7

AnnualOver/(Under)

CumulativeOver/(Under)

Actual

2007 ‐ ‐

2008 $0 $0

2009 $0 $0

2010 $0 $0

2011 $0 $0

2012 ($142,003) ($142,003)

Projected

2013 ($250,126) ($392,129)

2014 ($61,220) ($453,349)

2015 $63,947 ($389,402)

2016 $157,237 ($232,165)

2017 $210,969 ($21,196)

2018 $109,019 $87,823

In summary, the Report shows no increase in the total base project cost (in 2007dollars).Duetoescalation,anincreaseinprojectcashflowofapproximately$87.8millionwillbenecessarytocompletetheprojectin2018.TheseforecastsreflecttheupdatedcapitalcostschedulesapprovedinOrderNo.2012‐884,thecurrentconstructionscheduleandtheinflationindicesintheCompany’sAppendix4.Theincreaseinprojectcashflowisduetoanincreaseinescalationresultingfromconstructiondelaysandshort‐termescalationrateincreases.SCE&GhasestimatedthecostsassociatedwiththedelayinthesubstantialcompletiondatesforUnit2andUnit3tobeapproximately$200million.SinceSCE&Ghasnotacceptedresponsibilityfor



thesecosts,thisreportincludesnoincreasestotheprojectcashflowattributabletothedelayinthesubstantialcompletiondates.AFUDCandEscalation

The forecastedAFUDC for the totalprojectasof theendof the3rdquarterof2013 is

$229.7millionandiscurrentlybasedonaforecasted6.09%AFUDCrate.Changes in the AFUDC rate, timing changes in project spending due to construction

scheduleshifts,andfive‐yearaverageescalationratesareallfactorsthatimpacttheprojectedproject cash flow. Due to changes in escalation rates, as well as changes to the timing ofpaymentsduetoconstructiondelays,theoverallprojectcosthasdecreased.Morespecifically,asofSeptember30,2013,SCE&G’sforecastgrossconstructioncostoftheplantis$5.651billionas compared to the approved gross construction cost of $5.755 billion, which represents adecreaseofapproximately$104million.AnnualRequestforRevisedRates

PursuanttotheBLRA,SCE&Gmayrequestrevisedratesnoearlierthanoneyearafter

therequestofaBaseLoadReviewOrderoranypriorrevisedratesrequest. SCE&G filed itsAnnualRequestforRevisedRateswiththeCommissioninDocketNo.2013‐150‐EonMay30,2013, the anniversary date of SCE&G’s previous request for revised rates. The Commissionapprovedanincreaseof$67,240,232(2.87%)inOrderNo.2013‐680(A)onOctober2,2013.

Table 5 below shows the requested increases and approved increases from all priorRevisedRateFilingswiththeCommission.


Table5:

Requestedvs.ApprovedIncreasesSCE&GRevisedRateFilings

DocketNo.

OrderNo.

RequestedIncrease

ORSExamination

ApprovedIncrease

RetailIncrease

2008‐196‐E 2009‐104(A) $8,986,000 ($1,183,509) $7,802,491 0.43%

2009‐211‐E 2009‐696 $22,533,000 $0 $22,533,000 1.10%

2010‐157‐E 2010‐625 $54,561,000 ($7,260,000) $47,301,000 2.31%

2011‐207‐E 2011‐738 $58,537,000 ($5,753,658) $52,783,342 2.43%

2012‐186‐E 2012‐761 $56,747,000 ($4,598,087) $52,148,913 2.33%

2013‐150‐E 2013‐680(A) $69,671,000 ($2,430,768) $67,240,232 2.87%

AdditionalORSMonitoringActivities

ORScontinuallyperformsthefollowingactivities,aswellasothermonitoringactivitiesasdeemednecessary:

AuditscapitalcostexpendituresandresultingAFUDCinCWIP

Physicallyobservesconstructionactivities

Bi‐monthlyon‐sitereviewofconstructiondocuments

HoldsmonthlyupdatemeetingswithSCE&G

MeetsquarterlywithrepresentativesofWEC

ParticipatesinNRCPublicMeetingsregardingSCE&GCOLandotherconstructionactivities


SummaryofORSVisittoCB&I‐LCFacility

OnSeptember25,2013,ORSvisitedtheCB&I‐LCfacility inLakeCharles,Louisianato

review the fabrication and shipping status of theUnits’ structural sub‐modules. SCE&G andCB&I‐LC representatives were also present during this visit. The visit was comprised ofpresentationsbyseveralCB&I‐LCstaffandasitetour.ORStouredtheshopfloorandobservedthework inprogresson several structural sub‐modules, including those for theUnit2CA20andCA01modules.

Since assuming responsibility for the facility fromShaw in late2012,CB&Ihasmadeseveralmanagement changes; increased the staff from 700 in February 2013 to 1,205 as ofSeptember 25, 2013; revamped the shopprocesses andprocedures (including instituting anelectronic tracking system); implemented a planning and scheduling system that tracks allactivities associated with the fabrication process; instituted a program to promote a safetyconsciousworkenvironment;andexpandedthenumberofshiftsandworkhoursofthefacility.These changes are designed to improve the quality and schedule adherence; however, thefacility must demonstrate a sustained record of compliance in order to determine whethertheseeffortshavebeensuccessful.

The expansive shop area was filled with large steel plates and structural steel. Thenumberof“flattables”wherethefinalfabricationactivitieswereunderwayhadrecentlybeenincreased and several more were in various stages of completion. Welding activities wereunderway throughout the facility. However, the overall shop layout appeared to requiremultiplemovements of the large plates by the overhead crane to transfer the plates to theproperwork area. Also, on each sub‐module ORS observed, thereweremultiple “red tags”indicatingnon‐conformances that requiredre‐work. CB&I indicated thatmostof thesewerelegacy issues inherited from Shaw and that CB&I’s new processes and procedures shouldreducethesenon‐conformancesonfuturesub‐modules.


ConstructionChallenges

Based upon the information provided by the Company in its Report, as well as

information obtained via additional ORS monitoring activities, ORS identifies the followingongoingchallengesintheconstructionoftheUnits. StructuralModules

AsidentifiedinpreviousORSquarterlyreports,themostsignificant,currentchallengetotheprojectremainsthecontinuedinabilityofCB&I‐LCtoreliablyandpredictablymeetthequalityandschedulerequirementsoftheproject.ThecriticalpathtocompletionofUnit2runsthroughthecompletionofmodulesCA01andCA20,andisdependentuponthedeliveryofthesub‐modulesthatcomprisethecomponentsofthesemodulesfromCB&I‐LC. TheCVandthestructuresassociatedwith themainNuclear Island(“NI”)buildingcannotbecompleteduntilthesemodules are fabricatedand installed. TheBLRAmilestone (MilestoneActivityNo.97)most closely associated with this activity currently shows a 12‐month delay, and it isconcerning that none of the significant sub‐modules associatedwith the CA01module havebeendeliveredtothesite.Therehasbeenprogressmade,asstatedinthefollowingsummaryandasdiscussed in the “NotableActivitiesOccurringAfterSeptember30,2013” section,butthisarearemainsaprimaryfocusofORS.

CA04sub‐modulesweretransferredtothesiteforfinalfabricationandthecompletedmoduleforUnit2wassetinplaceinsidetheCVBHonSeptember27,2013.

CB&I‐LChasestablishedanon‐siteworkareaatthesitetoperformthefinalinspection,documentationreviewandcompletionofanyadditionalfinalwork.

Allsub‐modulesrequiredfortheassemblyofUnit2moduleCA20forplacementintheNI havebeendelivered to the site for final inspection and fabrication. This freedupshop space at the main CB&I‐LC facility which should permit them to focus on thecompletionofthefabricationoftheUnit2CA01sub‐modules.

CB&I‐LC is nowworking two12‐hour shifts, sevendays aweek to try to recover theschedule for the sub‐modules and reduce the impact on the substantial completiondates.

Fabrication of the sub‐modules for CA03 was transferred to Pegasus Steel in NorthCharleston,SCinordertofurtherreducetheburdenontheCB&I‐LCfacility.

RepairworktoremoveandreplacetheincorrectfilletweldswithfullpenetrationweldsontheUnit2CA20sub‐moduleswasnearlycompleteattheendofthereportingperiod.


ShieldBuildingModules Aspreviouslyreported,shieldbuildingmodulefabricationhasbeenreassignedtoNNI.However,NNI'ssustained,reliableperformancehasnotyetbeendemonstratedandadeliveryschedulehadnotyetbeenprovidedasofSeptember30,2013.ORSremainsconcernedaboutthe significant fabrication and erection challenges that will be presented by the complexconfigurations of the shield building modules. A firm delivery schedule for all the shieldbuilding modules needs to be established in the near future, and NNI needs to begin thedeliveryofhighqualitymodules to the site. In addition, the resultsof testpours associatedwithSouthernCompany’sVogtleandtheUnit#2&#3mock‐upsshouldprovideanindicationofhowtheerectionprocesswillprogress.Thenextfewmonthspresentacriticalchallengetotheprojectinthisarea,andwillbecloselymonitoredbyORS.StructuralDesignCompliance Thedesignreviewsandmodificationsrequiredtoaddressthe issues identifiedbythereviewdiscussedinORS’s20132ndQuarterReporthavenotresultedinanystatedimpacttothe project schedule or cost. However, the construction of the Auxiliary Buildingwalls hasrecentlyfallenbehindschedule.ORScontinuestomonitorthedelayclosely.InstrumentationandControlDesign

During this reporting period, SCE&G announced a 5½ month delay in the deliveryscheduleofthePlantReferenceSimulator(“PRS”)duetoadditionaltimerequiredforWECtocomplete theHuman Factors Engineering/Integrated Systems Validation testing. This delayalsoresultedinadelayintheexaminationdatesforthefirstclassoflicensedreactoroperators.

CompletionofthedesignofthePRSbyWEC,andreviewofthesedesignchangesbytheNRC, are key activities required to support this revised schedule and the substantialcompletiondates.InanefforttoacceleratethereviewofthePRS,theNRChasagreedtoreviewthecompletionofthedesignsofthePRSonapiece‐meal,system‐by‐systembasisratherthantheoriginallyplannedsinglecomprehensivereviewofthecompletedsoftware.However,anyfurtherdelaysinthecompletionofthedesignbyWECoranymajorissuesidentifiedintheNRCreviewcouldjeopardizethecommercialoperationdatesoftheUnits.


OverlappingUnit2&Unit3ConstructionSchedules Thedelays in theprogressonUnit2construction, inparticular thoseassociatedwithsub‐module fabrication and erection, have begun to challenge the ability of SCE&G and theConsortiumtoworkonbothUnitssimultaneouslywhileadheringtotheapprovedschedules.ThiswasrecentlydemonstratedbyshiftingworkcrewsfromthecoolingtowerfoundationstocompletetheUnit3NIbasemat.Thisisanareathatwillbemonitoredcloselyandwillbecomemorerelevantandchallengingoverthecomingmonths.

Adetailedconstructionschedule forUnit3wasdevelopedby theConsortiumduringthis period, and resulted in the approximately 7‐month delay presented as BLRAMilestoneActivityNo.146.However,thisschedulewasnotbasedonfirmcommitmentdatesfromCB&I‐LC for the Unit 3 structural sub‐modules. SCE&G indicated in its Report that the Unit 3substantial completion date may slip further into the first quarter of 2019. CB&I‐LC is topresentafirmscheduleandworkplantotheConsortiumandSCE&Gduringthe4thquarterof2013, and theUnit3 schedulewill thenbe revised to reflect these commitments. Theworkrepresentedonthisrevisedschedulewillchallengetheresourcesavailabletotheproject,andwill require coordinated efforts to ensure the work progresses in accordance with theapprovedschedulesontheUnits.ManufacturingofMajorEquipment Factorssuchasdesignchanges,laborconditions,shippingconditionsandthefinancialstability of foreignmanufacturers due to financialmarket conditions still present significantchallengestotheon‐timedeliveryofequipmenttotheproject.Itisencouragingthatthefinalshipment of major components for the Unit 2 Turbine Generator was received during thisperiod,andseveralmoremajorcomponentsareinthefinalprocessesorenroutetothesite.However, the extensive and expansive supply chains formajor components remain an issuethatrequirescontinuedattention. LicenseAmendmentReviews

ThecurrenttotalnumberofidentifiedLARsbySCE&Gwasover60asofSeptember30,2013,andthisnumbercontinuestoincreaseeachmonth.Ofthetotalnumber,19LARshavebeensubmittedtotheNRCforreview.SCE&GprovidesasummaryoftheLARsthathavebeensubmittedtotheNRCinAppendix5ofitsReport. ThepreparationandreviewoftheseLARsrequiressignificanteffortsbybothSCE&GandtheNRC. Insomecases,theapprovaloftheseLARsisbeginningtochallengetheconstructionscheduleandwillneedtobemonitoredclosely.


NotableActivitiesOccurringafterSeptember30,2013

TheBLRAallowsSCE&G45daysfromtheendofthecurrentquartertofileitsReport.

Items of importance that occurred subsequent to the closing of the 3rd quarter of 2013 arereportedbelow.AccumulatedDeferredIncomeTaxTimingDifference

AsreportedinORS’s20132ndQuarterReport,SCE&GfiledapetitionandnoticeforanallowableexpartecommunicationbriefingtoaddressaregulatoryaccountingissuerelatedtoaccumulateddeferredincometaxesonSeptember9,2013inDocketNo.2013‐336‐E.Thistaxissue arises as a result of the construction of the Units. In short, traditional accounting taxpracticesascompared toaccounting tax treatmentunder theBaseLoadReviewActcreateatimingdifferencethattemporarilycausesSCE&Gincreasedtaxliabilityexposure.Subsequenttotheendofthequarter,theCompanyconductedabriefingbeforetheCommissiononOctober17, 2013, and the Commission approved the Company’s petition in Order No. 2013‐803 onNovember26,2013.CautionMilestones

AlthoughmoduleCA04wasreportedassetinplaceasofSeptember27,2013,issueswiththeallowable tolerances for the final sethavedelayed thecompletionof thismilestone (BLRAMilestoneNo.78).AsofDecember10,2013,non‐conformancesassociatedwiththecompletionofthismilestoneremainunresolved,andthemilestoneisnotcomplete.

As of the end of November 2013, there were 17 BLRA milestones with targeted

completion dates at 10months ormore beyond theOrderNo. 2012‐884 approvedmilestonecompletiondates. Threeofthesehadcompletiondatesdelayedby15monthsormore. TheseareMilestoneNo.88(SetUnit2NIstructuralmoduleCA03)withadelayof16months,MilestoneNo. 92 (Start Unit 2 containment large bore pipe supports) with a delay of 15 months, andMilestoneNo.98(DeliveryofUnit2PassiveResidualHeatRemovalHeatExchangertoPortofEntry)withadelayof15months.ORSpreviouslyfiledaletternotifyingtheCommissionofthedelayinMilestoneNo.88onJuly26,2013. This letter isattachedtoORS’s20132ndQuarterReportasAppendixE.


EquipmentDelivery

TheUnit2CoreMake‐UpTanksweredelivered to the siteonNovember3,2013, andUnit2AccumulatorTanksweredeliveredtothesitefromMangiarottionNovember24,2013.Thesetanksarenowinstorageatthesite. NRCLicensing

OnSeptember30,2013,theNRCcompletedaquarterlyinspectioncoveringtheperiodof July1,2013 throughSeptember30,2013. Thereportdocumenting the inspectionresultswaspublishedafterthequarteronOctober30,2013.Therewerenofindingsidentifiedduringtheinspection. TheNRCconductedaninspectionoftheUnit3NIbasematconcretepour,andhadtwominorfindingswhichhadnoimpactontheconstructionactivities.

AsofDecember11,2013,theCompanyhasidentified72LARsfortheUnits.Ofthese,24have been submitted to the NRC for their review. Nine of these have been approved andincorporated into the license. Currently, one LAR has been identified as critical to theconstructionscheduleandwillrequireaPARinordertomaintainthecurrentprojectschedule.TheLAR,LAR13‐41,wassubmittedbytheCompanytotheNRConNovember26,2013.ThisisLARaddressesthermalconductivityoftheCVcoating.SiteFacilities

TheEmergencyResponseBuildingwasstructurallycompletedandnowhousesthenewfireequipmentpurchasedforthesite.StructuralModules

As reported above, the CA04 module has been set inside the CVBH, but is not yetconsideredtobeinitsfinalpositionbecauseofunresolvednon‐conformanceswithregardtotheallowabletolerancesonitsfinallocationandorientation.

Allsub‐modulesassociatedwithmoduleCA20havebeendeliveredtothesite;however,

manyofthesestillrequirerework/repairandfinalinspectionbytheon‐siteextensionofCB&I‐LCbeforetheyarereleasedtothesiteconstructioncrewforfinalassemblyofthemoduleintheMAB. Allweldrepairworkassociatedwithreplacingthenon‐conforming filletweldswith fullpenetrationwelds has now been completed and is undergoing final inspection. Work on theCA20continuesintheMAB,andthemoduleisscheduledtobeliftedontotheNIduringthe1stquarterof2014.


TheConsortiumhasproposedtoshiftsub‐modulefabricationfortheUnit3CA01,CA03,and CA20 modules to other vendors to reduce the burden on CB&I‐LC and to improve thedelivery schedule of the sub‐modules to the site. SCE&G has agreed to this proposal and isworkingwiththeConsortiuminvendorselection.

Mock‐uptestpoursfortheshieldbuildingwallshavebeenmadeatSouthernCompany’s

VogtleSiteandarecurrentlyintheprocessofbeingdestructivelytestedtodeterminewhetherthe constructionmethodology andapproach is satisfactory. SCE&G is activelyparticipating inthisactivity,andplanstousetheseresultsinperformingtheirownmock‐uptestpoursduringthe1stquarterof2014.TurbineBuilding

Subsequent to the end of the quarter, significant progress was made on the Unit 2TurbineBuilding. ThemajorturbinebuildingstructuralmoduleCH81AwassetonOctober3,2013,andthelowershellofcondensersectionCwassetonOctober24,2013.AsofDecember12,2013,theuppershellsofcondensersectionsA,BandChavebeenset.CondensateAandBpumpsarealsosetinplaceintheturbinebuilding.TheserepresentmajoractivitiestowardthecompletionoftheUnit2TurbineBuilding.Unit3NuclearIsland

Thepouringof theNIbasemat forUnit3wascompletedonNovember4,2013. ThisrepresentedthecompletionofBLRAMilestone111.ApressreleaseregardingtheplacementofthebasematwasissuedbytheCompanyandisincludedasAppendixE.

SCE&G’s20134thquarterreportisdue45daysafterDecember31,2013. ORSexpectstocontinuepublishingareviewevaluatingSCE&G’squarterlyreports.

AppendixADetailedMilestoneScheduleasofSeptember30,2013

AppendixA

Key:MilestonesNotCompleted

CompletedPriortoQ3‐13

CurrentQuarter

ScheduledtoBeCompleted

Q4‐13

ORSCautionMilestone

ActivityNo.

MilestoneCompletionDateApprovedinOrderNo.2012‐884

ScheduledCompletionDateasofQ3‐13

Outside18‐24MonthContingency?

ImpacttoSubstantialCompletionDate?1

ActualCompletion

Date

DeviationfromOrderNo.2012‐884

1ApproveEngineering,Procurementand

ConstructionAgreement5/23/2008 No No 5/23/2008

2IssuePurchaseOrders("P.O.")toNuclearComponentFabricatorsforUnits2and3

ContainmentVessels12/3/2008 No No 12/3/2008

3ContractorIssueP.O.toPassiveResidualHeatRemovalHeatExchangerFabricator–First

Payment‐Unit28/31/2008 No No 8/18/2008

4ContractorIssueP.O.toAccumulatorTank

Fabricator–Unit27/31/2008 No No 7/31/2008

5ContractorIssueP.O.toCoreMakeupTank

Fabricator‐Units2&39/30/2008 No No 9/30/2008

6ContractorIssueP.O.toSquibValveFabricator‐

Units2&33/31/2009 No No 3/31/2009

7ContractorIssueP.O.toSteamGenerator

Fabricator‐Units2&36/30/2008 No No 5/29/2008 1MonthEarly

8ContractorIssueLongLeadMaterialP.O.to

ReactorCoolantPumpFabricator‐Units2&36/30/2008 No No 6/30/2008

9ContractorIssueP.O.toPressurizerFabricator‐

Units2&38/31/2008 No No 8/18/2008

Q3‐13Review Page1of17

AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


10ContractorIssueP.O.toReactorCoolantLoopPipeFabricator‐FirstPayment‐Units2&3

6/30/2008 No No 6/20/2008

11ReactorVesselInternals–IssueLongLeadMaterialP.O.toFabricator‐Units2&3

11/21/2008 No No 11/21/2008

12ContractorIssueLongLeadMaterial‐P.O.to

ReactorVesselFabricator‐Units2&36/30/2008 No No 5/29/2008 1MonthEarly

13ContractorIssueP.O.toIntegratedHeadPackage


14ControlRodDriveMechanism–IssueP.O.forLongLeadMaterialtoFabricator‐Units2&3‐

FirstPayment6/21/2008 No No 6/21/2008

15IssueP.O.'stoNuclearComponentFabricatorsfor

NuclearIslandStructuralCA20Modules7/31/2009 No No 8/28/2009

16StartSiteSpecificandBalanceofPlantDetailed

Design9/11/2007 No No 9/11/2007

17Instrumentation&ControlSimulator‐Contractor

PlaceNoticetoProceed‐Units2&3

10/31/2008 No No 10/31/2008

18SteamGenerator‐IssueFinalP.O.toFabricator

forUnits2&36/30/2008 No No 6/30/2008


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


19ReactorVesselInternals‐ContractorIssueP.O.forLongLeadMaterial(HeavyPlateandHeavy

Forgings)toFabricator‐Units2&31/31/2010 No No 1/29/2010

20ContractorIssueFinalP.O.toReactorVessel


21VariableFrequencyDriveFabricatorIssue

TransformerP.O.‐Units2&34/30/2009 No No 4/30/2009

22 StartClearing,GrubbingandGrading 1/26/2009 No No 1/26/2009

23CoreMakeupTankFabricatorIssueLongLead

MaterialP.O.‐Units2&310/31/2008 No No 10/31/2008

24AccumulatorTankFabricatorIssueLongLead

MaterialP.O.‐Units2&310/31/2008 No No 10/31/2008

25PressurizerFabricatorIssueLongLeadMaterial

P.O.‐Units2&310/31/2008 No No 10/31/2008

26ReactorCoolantLoopPipe‐ContractorIssueP.O.

toFabricator‐SecondPayment‐Units2&3

4/30/2009 No No 4/30/2009

27IntegratedHeadPackage‐IssueP.O.toFabricator

‐Units2&3‐SecondPayment7/31/2009 No No 7/31/2009


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


28ControlRodDriveMechanism‐ContractorIssue

P.O.forLongLeadMaterialtoFabricator‐Units2&3

6/30/2008 No No 6/30/2008

29ContractorIssueP.O.toPassiveResidualHeatRemovalHeatExchangerFabricator‐Second

Payment‐Units2&310/31/2008 No No 10/31/2008

30 StartParrRoadIntersectionWork 2/13/2009 No No 2/13/2009

31ReactorCoolantPump‐IssueFinalP.O.to


32IntegratedHeatPackagesFabricatorIssueLong

LeadMaterialP.O.‐Units2&310/31/2009 No No 10/1/2009 1MonthEarly

33 DesignFinalizationPayment3 1/31/2009 No No 1/30/2009

34 StartSiteDevelopment 6/23/2008 No No 6/23/2008

35ContractorIssueP.O.toTurbineGenerator


36ContractorIssueP.O.toMainTransformers



AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


37CoreMakeupTankFabricatorNoticeto

ContractorReceiptofLongLeadMaterial‐Units2&3

11/30/2010 No No 12/30/2010 Delayed1Month


39TurbineGeneratorFabricatorIssueP.O.for

CondenserMaterial‐Unit28/31/2009 No No 8/28/2009

40ReactorCoolantPumpFabricatorIssueLong

LeadMaterialLot2‐Units2&34/30/2009 No No 4/30/2009

41PassiveResidualHeatRemovalHeatExchangerFabricatorReceiptofLongLeadMaterial‐Units2

&35/31/2010 No No 5/27/2010


43

StartErectionofConstructionBuildingstoincludeCraftFacilitiesforPersonnel,Tools,

Equipment;FirstAidFacilities;FieldOfficesforSiteManagementandSupportPersonnel;

TemporaryWarehouses;andConstructionHiringOffice

10/9/2009 No No 12/18/2009 Delayed2Months

44ReactorVesselFabricatorNoticetoContractorof

ReceiptofFlangeNozzleShellForging‐Unit2

7/31/2009 No No 8/28/2009


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date



46InstrumentationandControlSimulator‐ContractorIssueP.O.toSubcontractorforRadiationMonitorSystem‐Units2&3

12/31/2009 No No 12/17/2009

47ReactorVesselInternals‐FabricatorStartFitand

WeldingofCoreShroudAssembly‐Unit26/30/2011 No No 7/29/2011

48TurbineGeneratorFabricatorIssueP.O.for

MoistureSeparatorReheater/FeedwaterHeaterMaterial‐Unit2

4/30/2010 No No 4/30/2010

49ReactorCoolantLoopPipeFabricatorAcceptance

ofRawMaterial‐Unit24/30/2010 No No 2/18/2010 2MonthsEarly

50ReactorVesselInternals‐FabricatorStartWeldNeutronShieldSpacerPadstoAssembly‐Unit2

7/31/2012 No No 8/28/2012

51ControlRodDriveMechanisms‐FabricatortoStartProcurementofLongLeadMaterial‐Unit2

6/30/2009 No No 6/30/2009

52ContractorNotifiedthatPressurizerFabricatorPerformedCladdingonBottomHead‐Unit2

11/30/2010 No No 12/23/2010

53StartExcavationandFoundationWorkforthe

StandardPlantforUnit23/15/2010 No No 3/15/2010


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


54SteamGeneratorFabricatorNoticetoContractorofReceiptof2ndSteamGeneratorTubesheet

Forging‐Unit22/28/2010 No No 4/30/2010 Delayed2Months

55ReactorVesselFabricatorNoticetoContractorofOutletNozzleWeldingtoFlangeNozzleShell

Completion‐Unit22/28/2010 No No 12/30/2010 Delayed10Months

56TurbineGeneratorFabricatorNoticeto

ContractorCondenserFabricationStarted‐Unit2

5/31/2010 No No 5/17/2010

57CompletePreparationsforReceivingtheFirst

ModuleOnSiteforUnit28/18/2010 No No 1/22/2010 6MonthsEarly

58SteamGeneratorFabricatorNoticetoContractorofReceiptof1stSteamGeneratorTransition

ConeForging‐Unit24/30/2010 No No 4/21/2010

59ReactorCoolantPumpFabricatorNoticetoContractorofManufacturingofCasing

Completion‐Unit211/30/2010 No No 11/16/2010

60ReactorCoolantLoopPipeFabricatorNoticetoContractorofMachining,HeatTreating&Non‐

DestructiveTestingCompletion‐Unit212/31/2010 No No 3/20/2012 Delayed14Months

61CoreMakeupTankFabricatorNoticetoContractorofSatisfactoryCompletionof

Hydrotest‐Unit29/30/2012 No No 11/26/2012 Delayed1Month

62PolarCraneFabricatorIssueP.O.forMainHoist

DrumandWireRope‐Units2&32/28/2011 No No 2/1/2011


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


63ControlRodDriveMechanisms‐FabricatortoStartProcurementofLongLeadMaterial‐Unit3

6/30/2011 No No 6/14/2011


ContractorCondenserReadytoShip‐Unit210/31/2011 No No 3/26/2012 Delayed4Months

65 StartPlacementofMudMatforUnit2 6/29/2012 No No 7/20/2012

66SteamGeneratorFabricatorNoticetoContractorofReceiptof1stSteamGeneratorTubing‐Unit2

1/31/2011 No No 9/28/2010 4MonthsEarly

67PressurizerFabricatorNoticetoContractorofWeldingofUpperandIntermediateShells

Completion‐Unit210/31/2010 No No 10/28/2011 Delayed12Months


ClosureHeadCladdingCompletion‐Unit36/30/2012 No No 6/28/2012

69 BeginUnit2FirstNuclearConcretePlacement 8/24/2012 No No 3/9/2013 Delayed6Months

70ReactorCoolantPumpFabricatorNoticetoContractorofStatorCoreCompletion‐Unit2


71FabricatorStartFitandWeldingofCoreShroud

Assembly‐Unit26/30/2011 No No 7/29/2011


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


72SteamGeneratorFabricatorNoticetoContractorofCompletionof1stSteamGeneratorTubing

Installation‐Unit25/31/2011 No No 1/27/2012 Delayed8Months

73ReactorCoolantLoopPipe‐Shipmentof

EquipmenttoSite‐Unit212/31/2012 10/21/2013 No No Delayed9Months

74ControlRodDriveMechanism‐ShipRemainderofEquipment(LatchAssembly&RodTravel

Housing)toHeadSupplier‐Unit26/30/2012 No No 7/16/2012

75PressurizerFabricatorNoticetoContractorof

WeldingofLowerShelltoBottomHeadCompletion‐Unit2


76SteamGeneratorFabricatorNoticetoContractorofCompletionof2ndSteamGeneratorTubing

Installation‐Unit25/31/2012 No No 5/4/2012


78 SetModuleCA04ForUnit2 11/6/2012 9/10/2013 No NoDelayed10Months

79PassiveResidualHeatRemovalHeatExchangerFabricatorNoticetoContractorofFinalPost

WeldHeatTreatment‐Unit26/30/2010 No No 5/24/2011 Delayed10Months

80PassiveResidualHeatRemovalHeatExchangerFabricatorNoticetoContractorofCompletionof

Tubing‐Unit25/31/2012 No No 5/29/2012


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


81PolarCraneFabricatorNoticetoContractorof

GirderFabricationCompletion‐Unit210/31/2012 No No 10/23/2012


ContractorCondenserReadytoShip‐Unit38/31/2013 No No 8/26/2013

83 SetContainmentVesselRing#1forUnit2 1/7/2013 1/10/2014 No NoDelayed12Months

84ReactorCoolantPumpFabricatorDeliveryof

CasingstoPortofExport‐Unit27/31/2012 No No 7/6/2013

Delayed11Months

85ReactorCoolantPumpFabricatorNoticetoContractorofStatorCoreCompletion‐Unit3

8/31/2013 No No 7/18/2013 1MonthEarly


ReceiptofCoreShellForging‐Unit39/30/2012 No No 3/29/2012 6MonthsEarly

87ContractorNotifiedthatPressurizerFabricatorPerformedCladdingonBottomHead‐Unit3

1/31/2013 No No 11/9/2011 14MonthsEarly

88SetNuclearIslandStructuralModuleCA03for

Unit26/26/2013 10/5/2014 No No

Delayed15Months

89SquibValveFabricatorNoticetoContractorof

CompletionofAssemblyandTestforSquibValveHardware‐Unit2

5/31/2012 No No 5/10/2012


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


90AccumulatorTankFabricatorNoticetoContractorofSatisfactoryCompletionof

Hydrotest‐Unit33/31/2013 No No 9/16/2013 Delayed5Months

91PolarCraneFabricatorNoticetoContractorofElectricPanelAssemblyCompletion‐Unit2

3/31/2013 No No 3/6/2013

92StartContainmentLargeBorePipeSupportsfor

Unit26/28/2013 9/22/2014 No No

Delayed15Months

93IntegratedHeadPackage‐Shipmentof

EquipmenttoSite‐Unit23/31/2013 2/14/2014 No No

Delayed10Months

94ReactorCoolantPumpFabricatorNoticeto

ContractorofFinalStatorAssemblyCompletion‐Unit2

5/31/2013 1/21/2014 No No Delayed7Months

95SteamGeneratorFabricatorNoticetoContractorofCompletionof2ndSteamGeneratorTubing

Installation‐Unit36/30/2013 10/30/2013 No No Delayed4Months

96SteamGeneratorFabricatorNoticetoContractorofSatisfactoryCompletionof1stSteamGenerator

Hydrotest‐Unit21/31/2013 No No 1/14/2013

97StartConcreteFillofNuclearIslandStructural

ModulesCA01andCA02forUnit24/3/2014 4/6/2015 No No

Delayed12Months

98PassiveResidualHeatRemovalHeatExchanger‐DeliveryofEquipmenttoPortofEntry‐Unit2

12/31/2012 1/22/2014 No NoDelayed12Months


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


99RefuelingMachineFabricatorNoticetoContractorofSatisfactoryCompletionof

FactoryAcceptanceTest‐Unit211/30/2013 3/20/2014 No No Delayed3Months

100DeliverReactorVesselInternalstoPortof

Export‐Unit21/31/2014 7/28/2014 No No Delayed5Months

101 SetUnit2ContainmentVessel#3 4/24/2014 4/8/2015 No NoDelayed11Months

102SteamGenerator‐ContractorAcceptanceof

EquipmentatPortofEntry‐Unit27/31/2013 5/26/2014 No No

Delayed10Months


ContractorTurbineGeneratorReadytoShip‐Unit2

4/30/2013 No No 5/28/2013

104PressurizerFabricatorNoticetoContractorofSatisfactoryCompletionofHydrotest‐Unit3

3/31/2014 3/28/2014 No No

105PolarCrane‐ShipmentofEquipmenttoSite‐

Unit21/31/2014 2/6/2015 No No

Delayed12Months

106ReceiveUnit2ReactorVesselOnSiteFrom

Fabricator5/13/2014 No No 7/31/2013 9MonthsEarly

107 SetUnit2ReactorVessel 6/23/2014 5/18/2015 No NoDelayed11Months


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


108SteamGeneratorFabricatorNoticeto

ContractorofCompletionof2ndChannelHeadtoTubesheetAssemblyWelding‐Unit3



ContractorofFinalStatorAssemblyCompletion‐Unit3


110ReactorCoolantPump‐Shipmentof

EquipmenttoSite(2ReactorCoolantPumps)‐Unit2


111 PlaceFirstNuclearConcreteforUnit3 10/9/2013 10/25/2013 No No

112 SetUnit2SteamGenerator 10/23/2014 8/18/2015 No NoDelayed10Months

113 MainTransformersReadytoShip‐Unit2 9/30/2013 No No 7/31/2013 2MonthsEarly

114CompleteUnit3SteamGeneratorHydrotestat

Fabricator2/28/2014 10/30/2014 No No Delayed8Months

115SetUnit2ContainmentVesselBottomHeadon

BasematLegs10/11/2012 No No 5/22/2013 Delayed7Months

116 SetUnit2PressurizerVessel 5/16/2014 5/29/2015 No NoDelayed12Months


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date



ContractorofSatisfactoryCompletionofFactoryAcceptanceTest‐Unit3

2/28/2015 1/16/2015 No No 1MonthEarly

118DeliverReactorVesselInternalstoPortofExport‐

Unit36/30/2015 6/12/2015 No No

119MainTransformersFabricatorIssueP.O.for

Material‐Unit32/28/2015 2/2/2015 No No

120CompleteWeldingofUnit2PassiveResidualHeat

RemovalSystemPiping2/5/2015 10/30/2015 No No Delayed8Months

121SteamGenerator‐ContractorAcceptanceof

EquipmentAtPortofEntry‐Unit34/30/2015 1/2/2015 No No 3MonthsEarly

122RefuelingMachine‐ShipmentofEquipmentto

Site‐Unit32/28/2015 4/3/2015 No No Delayed1Month

123 SetUnit2PolarCrane 1/9/2015 9/28/2015 No No Delayed8Months

124ReactorCoolantPumps‐ShipmentofEquipment

toSite‐Unit36/30/2015 6/8/2015 No No

125 MainTransformersReadytoShip‐Unit3 7/31/2015 4/13/2015 No No 3MonthsEarly


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


126SpentFuelStorageRack‐ShipmentofLastRack

Module‐Unit37/31/2014 7/4/2014 No No

127StartElectricalCablePullinginUnit2

AuxiliaryBuilding8/14/2013 9/24/2014 No No

Delayed13Months

128CompleteUnit2ReactorCoolantSystemCold

Hydro1/22/2016 10/5/2016 No No Delayed8Months

129ActivateClass1EDCPowerinUnit2Auxiliary

Building3/15/2015 1/12/2016 No No

Delayed10Months

130 CompleteUnit2HotFunctionalTest 5/3/2016 2/8/2017 No No Delayed9Months

131 InstallUnit3Ring3forContainmentVessel 8/25/2015 12/9/2015 No No Delayed3Months

132 LoadUnit2NuclearFuel 9/15/2016 7/25/2017 No NoDelayed10Months

133 Unit2SubstantialCompletion 3/15/2017 12/15/2017 No No Delayed9Months

134 SetUnit3ReactorVessel 10/22/2015 2/16/2016 No No Delayed3Months


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


135 SetUnit3SteamGenerator#2 2/25/2016 5/17/2016 No No Delayed2Months

136 SetUnit3PressurizerVessel 7/16/2015 2/2/2016 No No Delayed6Months

137CompleteWeldingofUnit3PassiveResidual

HeatRemovalSystemPiping6/16/2016 7/27/2016 No No Delayed1Month

138 SetUnit3PolarCrane 5/9/2016 7/11/2016 No No Delayed2Months

139StartUnit3ShieldBuildingRoofSlabRebar

Placement5/26/2016 9/22/2016 No No Delayed4Months

140StartUnit3AuxiliaryBuildingElectricalCable

Pulling11/7/2014 6/2/2015 No No Delayed6Months

141ActivateUnit3AuxiliaryBuildingClass1EDC

Power5/15/2016 11/8/2016 No No Delayed5Months

142CompleteUnit3ReactorCoolantSystemCold

Hydro3/22/2017 8/21/2017 No No Delayed5Months

143 CompleteUnit3HotFunctionalTest 7/3/2017 12/26/2017 No No Delayed5Months


AppendixA



CurrentQuarter


Q4‐13

ORSCautionMilestone

ActivityNo.





ActualCompletion

Date


144 CompleteUnit3NuclearFuelLoad 11/15/2017 6/22/2018 No No Delayed7Months

145 BeginUnit3FullPowerOperation 4/8/2018 11/28/2018 No No Delayed7Months

146 Unit3SubstantialCompletion 5/15/2018 12/15/2018 No No Delayed7Months

Notes:

Redhighlightingrepresents"CautionMilestones."CautionMilestonesarethosethataredelayedby10monthsorgreater.

YellowhighlightingrepresentsthoseMilestonesthatarescheduledtobeorhavebeencompletedduringthe3rdQuarter2013.ThisisbasedonthescheduleapprovedbytheCommissioninOrderNo.2012‐884.

WhitehighlightingrepresentsFutureorHistoricalMilestonesthathavenotbeencompleted.

GreyhighlightingrepresentsFutureorHistoricalMilestonesthatwerecompletedpriortothe3rdQuarter2013.

GreenhighlightingrepresentsFutureMilestonesthatarescheduledtobecompletedinthe4thQuarterof2013.ThisisbasedonthescheduleapprovedbytheCommissioninOrderNo.2012‐884.


AppendixBCautionMilestones

AppendixB

ActivityNo.




ReasonGivenforDelay

78 SetModuleCA04ForUnit2 11/6/2012 9/10/2013Delayed10Months

Thedelaysareassociatedwiththedelivery,receiptandfabricationoftheCA04module.

83SetContainmentVesselRing#1for

Unit21/7/2013 1/10/2014

Delayed12Months

TheContainmentVesselRing1sitsatoptheContainmentVesselBottomHead,whichsitsatoptheCR10module.Thedelayshereareduetoengineeringanddesignapprovals,notablydesignapprovalsrelatedtothebasemat

concrete.ThesettingoftheContainmentVesselRing#1previouslyalsodependedonthesettingoftheCA20module,butaworkaroundforthishasbeenestablished.Abulkheadisbeing

installedtoallowconcretetobepouredaroundtheCVBHpriortothesettingoftheCA20

module.

88SetNuclearIslandStructuralModule

CA03forUnit26/26/2013 10/5/2014

Delayed15Months

DelaysareduetodelaysassociatedwiththefabricationandsettingoftheCA01module,aswellasscheduleresequencing.Manufacturingofthesub‐modulesfortheCA03modulewasmovedfromCB&I‐LCtoPegasusSteel,LLC

earlierintheyeartoallowCB&I‐LCtofocusontheCA01module.WECalsodiscovereda

probleminthelogicofthepreviousschedule,asthepropersupportfortheCA03modulewillnotbeavailableuntilboththeplacementoftheCA01moduleandtheconcretepourassociated

withthatactivityhavebeencompleted.


AppendixB

ActivityNo.




ReasonGivenforDelay

92StartContainmentLargeBorePipe

SupportsforUnit26/28/2013 9/22/2014

Delayed15Months

DelaysareduetodelaysassociatedwiththefabricationandsettingoftheCA01module,aswellasscheduleresequencing.WECdiscoveredaprobleminthelogicofthepreviousschedule,astheContainmentVesselLargeBorePipeSupportscannotbeinstalleduntilactivitiesassociatedwiththeplacmentoftheCA01

modulehavebeencompleted.ThereviseddateforthesettingoftheCA03modulestillsupports

atargetsubstantialcompletiondateofDecember14,2017forUnit2.

93IntegratedHeadPackage‐Shipmentof

EquipmenttoSite‐Unit23/31/2013 2/14/2014

Delayed10Months

Thedelayisduetodesignchangestotheradialarmhoisttoresolveissueswithsystem

integration.

97StartConcreteFillofNuclearIsland

StructuralModulesCA01andCA02forUnit2

4/3/2014 4/6/2015Delayed12Months

ThedelayisduetodelaysassociatedwiththefabricationandsettingoftheCA01module.

Thismilestoneisalsoimpactedbyaconstructionactivityresequencingthatcallsfor

theweldingofthePressurizerandSteamGeneratorSupportstobeweldedtotheCA01wallpriortotheplacementofconcreteafterthe

settingofCA01.

98PassiveResidualHeatRemovalHeatExchanger‐DeliveryofEquipmentto

PortofEntry‐Unit212/31/2012 1/22/2014

Delayed12Months

Thedelayisduetoschedulerefinementandtheneedforengineeringdesignapprovalpriorto

shipment.

101 SetUnit2ContainmentVessel#3 4/24/2014 4/8/2015Delayed11Months



AppendixB

ActivityNo.




ReasonGivenforDelay

102SteamGenerator‐Contractor

AcceptanceofEquipmentatPortofEntry‐Unit2

7/31/2013 5/26/2014Delayed10Months

Thedelayisduetooverallscheduleresequencing.

105PolarCrane‐ShipmentofEquipmentto

Site‐Unit21/31/2014 2/6/2015

Delayed12Months


107 SetUnit2ReactorVessel 6/23/2014 5/18/2015Delayed11Months

ThedelayisprimarilyduetodelaysassociatedwiththefabricationandsettingoftheCA01module.Aportionofthedelayisalsoduetoaschedulechangerelatedtotheinstallmentofoverlayplatesforthesupportsformajor

components.

112 SetUnit2SteamGenerator 10/23/2014 8/18/2015Delayed10Months


116 SetUnit2PressurizerVessel 5/16/2014 5/29/2015Delayed12Months


127StartElectricalCablePullinginUnit2

AuxiliaryBuilding8/14/2013 9/24/2014

Delayed13Months


129ActivateClass1EDCPowerinUnit2

AuxiliaryBuilding3/15/2015 1/12/2016

Delayed10Months


132 LoadUnit2NuclearFuel 9/15/2016 7/25/2017Delayed10Months



AppendixCConstructionSitePhotographs

V.C.SummerUnits2&3August,2013

Unit2CH80 andCondenserB

Unit2CA04 Placement

Unit2CVRing1

Unit2CA20

TransmissionLineConstruction

Unit3NuclearIsland

AppendixDLicenseAmendmentRequests

AppendixD

NRCLARNo.

SummaryLAR

SubmittalDate

LARStatus

LARApprovalDate

PARStatus

PARNoObjectionLetterDate

12‐01 StudSpacingaroundElectricalPenetrations 8/29/2012 Approved 7/1/2013

12‐02 DefinitionofWallThicknessinTable3.3.1 9/26/2012 Approved 5/30/2013 Approved 1/16/2013

13‐01 BasematShearReinforcementDesignSpacing 1/15/2013 Approved 2/26/2013 Approved 1/29/2013

13‐02 BasematShearReinforcementDesignDetails 1/18/2013 Approved 3/1/2013 Approved 1/29/2013

13‐03 TurbineBuildingEccentricandConcentricBracing 2/7/2013 Approved 7/1/2013

13‐04 ReconciliationofTier1ValueDifferences 2/7/2013 Pending

13‐05 StructuralModuleShearStudSizeandSpacing 2/14/2013 Approved 5/23/2013

13‐06 PrimarySamplingSystemChanges 2/7/2013 Approved 8/22/2013

13‐07 ChangestoChemicalandVolumeControlSystem 3/13/2013 Pending

13‐08 ModuleObstructionsandDetails 2/28/2013 Withdrawn

13‐10 HumanFactorsEngineeringIntegratedPlan 3/13/2013 Pending

13‐11 NuclearIslandWallsReinforcementCriteria 3/26/2013 Approved 6/6/2013 Approved 4/10/2013

13‐12 FireAreaBoundaryChanges 7/17/2013 Pending

13‐13 TurbineBuildingLayoutChanges 7/30/2013 Pending

Q3‐13Review 1of2

AppendixD

NRCLARNo.

SummaryLAR

SubmittalDate

LARStatus

LARApprovalDate

PARStatus

PARNoObjectionLetterDate

13‐16 HumanFactorsEngineeringVerificationPlan 9/25/2013 Pending

13‐17 HumanFactorsEngineeringVerificationPlan 9/25/2013 Pending

13‐20 Module/StudChannelObstructionsRevisions 7/17/2013 Pending

13‐25 Tier1EditorialandConsistencyChanges 7/2/2013 Pending

13‐32 LiquidWasteSystemChanges 8/30/2013 Pending

Q3‐13Review 2of2

AppendixESCE&GBasematConcretePressRelease

For Immediate Release SCANA Media Contact: SCANA Investor Contact: Rhonda O’Banion Christina Putnam 800-562-9308 803-217-7512 [email protected] [email protected]

SCE&G Completes Nuclear Island Basemat Placement for V.C. Summer Unit 3 CAYCE, S.C., Nov. 4, 2013—South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE:SCG), completed on Nov. 4, 2013 placement of the nuclear island basemat for V.C. Summer Unit 3 in Fairfield County, S.C. This major milestone comes just seven months after SCE&G poured the first new construction nuclear concrete in the U.S. in three decades for its Unit 2 nuclear island. “We are again proud to have accomplished such a significant milestone as our new nuclear construction project progresses,” said Kevin Marsh, chairman and CEO of SCANA. “This is another example of our outstanding collaboration with Santee Cooper, CB&I, Westinghouse Electric Company and the many other stakeholders who play a role in providing South Carolina with the best solution for meeting the long-term need for clean, safe, and reliable power.” “This successful basemat placement is a testament to the hard work by all involved,” said Lonnie Carter, president and CEO of Santee Cooper. “We have come a long way since getting our combined construction and operating licenses in March 2012, and this milestone gets us one step closer to the finish line and the many benefits these units will provide for our state.”

The basemat provides a foundation for the containment and auxiliary buildings that are within the nuclear island. Measuring 6 feet in thickness, the basemat required approximately 7,000 cubic yards of concrete to cover an area about 250 feet long and 160 feet at its widest section. This approximately 43-hour continuous pour of concrete covered a surface totaling 32,000 square feet.

About 2,000 workers are currently involved in constructing two new reactors at V.C. Summer, where Unit 1 has operated safely and reliably for 30 years. The new nuclear project will peak at about 3,000 workers over the course of three to four years. The two 1,117-megawatt units will add 600 to 800 permanent jobs. Once the two units are complete—Unit 2 currently scheduled to be in late 2017 or early 2018, followed by Unit 3—SCE&G anticipates its generation mix will be about 30 percent nuclear, 30 percent natural gas, and 30 percent scrubbed coal, with the balance in hydro, solar and biomass. SCANA and SCE&G post information from time to time regarding developments relating to SCE&G’s new nuclear project on SCANA’s website at www.scana.com. On SCANA’s homepage, there is a yellow box containing a link to the New Nuclear Development section of the website. That section in turn contains a yellow box with a link to project news and updates. Some of the information that is posted from time to time may be deemed to be material information that has not otherwise become public, and investors, media and others interested in SCE&G’s new nuclear project are encouraged to review this information. PROFILE South Carolina Electric & Gas Company is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 675,000 customers in 24 counties in the central, southern

and southwestern portions of South Carolina. The company also provides natural gas service to approximately 325,000 customers in 38 counties in the state. More information about SCE&G is available at www.sceg.com. SCANA Corporation, headquartered in Cayce, SC, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. Information about SCANA is available on the Company’s website at www.scana.com.

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