Progress rate hike OK'd to cover nuclear replacement power costs

The Florida Public Service Commission Feb. 22 unanimously approved an agreement that will increase the power bills of Progress Energy Florida (NYSE: PGN) customers.

According to the Tampa Bay Times, the deal includes a $288 million so-called refund to customers who were paying to replace power lost from the 860 MW Crystal River nuclear power plant. The plant has been closed since 2009 after cracks were found in the concrete containment wall during a maintenance and upgrade outage.

The average customer’s bill is reportedly expected to increase $4.93 per 1,000 kWh per month.

Progress Energy said it did not think its insurer would “voluntarily pay” the full cost of repairing the Crystal River plant, a decision that could delay the reactor’s restart and cost tens of millions of dollars in additional replacement power. The company had said the plant would be back online by 2014, but the Nuclear Electric Insurance Limited had stopped paying claims in the first half of 2011 and still has not decided whether to cover the rest, the article said.

If the utility decides to repair the plant, it must begin the work before the end of 2012, according to a settlement agreement between Progress and the Office of Public Counsel, the article said. If Progress does not meet that deadline, the company would add $100 million to the $288 million to be refunded to customers.

Part of the agreement also limits the amount Progress can collect in advance for the planned $22.5 billion Levy County nuclear power plant.

Subscribe to Nuclear Power International magazine

Sponsored by FLSmidth

Related Articles

Areva asks NRC to suspend nuclear reactor design review

Areva Inc. has asked the U.S. Nuclear Regulatory Commission (NRC) to suspend its design certification review of Areva’s European Pressurized Reactor (EPR).

Kentucky Senate passes new nuclear power plant bill

The Kentucky state Senate passed a bill that would end a moratorium on building new nuclear reactors in the state.

Follow Power Engineering on Twitter
Latest News

MHPS to supply M501J gas, steam turbines to new combined-cycle power plant in Korea

Mitsubishi Hitachi Power Systems (MHPS), jointly with Marubeni Corp., has received an order f...

Business leaders throw support behind coal plant proposal

Business leaders on Thursday outlined the economic devastation they say could come if New Mex...

TVA seeks public comment for future coal ash storage at Bull Run

The Tennessee Valley Authority (TVA) is asking for public input on plans to expand dry onsite...

California Public Utilities Commission Approves NRG Energy’s Carlsbad Energy Center

California Public Utilities Commission (CPUC) has approved the SDG&E Power Purchase and T...

Vermont joins international effort to fight climate change

Gov. Peter Shumlin says Vermont has signed on to what he called a first-of-its-kind agreement...

Products May 2015

Callaway Energy Center's Replacement Reactor Vessel Closure Head Project

Replacing heavy equipment is one way utilities can extend the life and increase the reliabili...

Managing CCRs and Process Water: Why Handling Bottom Ash Wet May Remain The Best Option

The U.S. coal-fired electric generation industry once again finds itself in the crosshairs of...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free NDT Job Training to Vets, Disadvantaged Young Adults

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free ND...

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tech Talent

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tec...

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possible Delisting

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>