Cost of new nuclear power plant rises in Progress' annual cost-recovery projections

Progress Energy Florida, a unit of Progress Energy (NYSE: PGN), on May 1 filed its annual nuclear cost-recovery clause (NCRC) projections with the Florida Public Service Commission (FPSC) for consideration for the 2013 billing cycle.

In its filing, Progress provided updates on its proposed Levy County nuclear project and on a project to increase the capacity at the single-unit, 860 MW Crystal River Nuclear Plant. Progress said these updates include new estimated in-service dates and a revised cost estimate for the Levy County nuclear project and 2013 cost-recovery estimates for the capacity upgrade project. Progress Energy Florida plans to construct two new 1,100 MW Westinghouse AP1000 nuclear reactors in Levy County, Fla.

Progress said due to lower-than-projected customer demand, the lingering economic slowdown, uncertainty regarding potential carbon regulation, and current low natural gas prices, it is shifting the in-service date for the first Levy unit to 2024, with the second unit following 18 months later. Progress said the revised schedule is consistent with the approach the utility publicly discussed after announcing the recent rate settlement agreement. Although the scope and overnight cost for the Levy County nuclear project - including land acquisition, related transmission work and other required investments - remain essentially unchanged, the shift in schedule will increase escalation and carrying costs and raise the total estimated project cost to between $19 and $24 billion.

On April 27, the Nuclear Regulatory Commission (NRC) issued the Final Environmental Impact Statement for the project, stating there are no environmental impacts that would prevent the agency from issuing the combined operating license for the construction and operation of the proposed reactors.

The NCRC filing is submitted each year in accordance with the Florida Renewable Technology and Energy Efficiency Act of 2006, which encourages the development of nuclear energy by allowing utilities to use a pay-as-you-go approach and recover prudent preconstruction and interest costs of new nuclear construction or expansion of existing nuclear plants. The statute helps reduce the overall cost of new nuclear projects and provides for annual review and approval by the FPSC.

If approved in its entirety, Progress Energy's total 2013 NCRC charge would be $5.09 on a 1,000 kWh residential bill beginning with January 2013 billing, compared to $2.86 in 2012.

As a result of the previously announced, FPSC-approved rate settlement agreement between Progress Energy and consumer advocates, the portion of the NCRC charge related to the Levy County nuclear project will increase to $3.45 on a 1,000 kWh residential bill in 2013, compared to the 2012 rate of $2.67, and will remain fixed through 2017. In addition, the utility has requested to adjust the Crystal River Nuclear Plant upgrade-related portion of the NCRC charge to $1.64 on a 1,000-kWh residential bill in 2013, compared to $0.19 in 2012.

The Crystal River Nuclear Plant has been shut down since a separation was discovered within the wall of the plant's containment building during a scheduled maintenance outage in the fall of 2009. The plant is expected to return to service in 2014.

Subscribe to Nuclear Power International magazine

Sponsored by FLSmidth

Related Articles

 GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez says it received guarantees from Areva for planned nuclear reactors in Turkey and wind turbines in France.

 CB&I: We’re not liable for $247mn nuclear power project penalties

CB&I: We’re not liable for $247mn nuclear power project penalties

Chicago Bridge & Iron (CB&I, NYSE: CBI) say they should not be liable for any of the $247 million in penalties that are due for delays at the Plant Vogtle nuclear project in Georgia.

Follow Power Engineering on Twitter
Latest News

PNM files ownership plan, coal supply deal with regulators

New Mexico's largest electric provider says it's on track to meeting a deadline for submittin...

Oklahoma attorney general challenges EPA's clean-air plan

A plan by the U.S. Environmental Protection Agency to reduce emissions from coal-fired power ...

Wave Energy Week will mix marine energy developers with traditional hydropower

Oregon Gov. Kate Brown, Democrat, has proclaimed “July 13-17, 2015 to be Oregon Wave Week in ...

Public Service Company of Oklahoma seeks rate increase

Public Service Company of Oklahoma is asking for a 13.6 percent rate increase it says is need...

GAO looks at reliability impacts of changing power generation mix

The Government Accountability Office (GAO) on June 29 released a study provided a month befor...

On the day after MATS decision, Bernstein sees only a limited reprieve for coal units

In light of the U.S. Supreme Court ruling against the EPA's Mercury and Air Toxics Standards ...

Pence says Indiana will not comply with coal plant regulations

Indiana will not comply with President Barack Obama's plan to battle climate change by requir...

Westermost Rough offshore wind park enters operations

The 210-MW offshore wind power plant, Westermost Rough, has entered operations. The project w...

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

NW Natural Announces Dividend and Schedules Conference Call to Review Results for the Three and Six Months Ended June 30, 2015

NW Natural Announces Dividend and Schedules Conference Call to Review Results for the T...

Vantage Drilling Responds to News Reports Regarding Petrobras

Vantage Drilling Responds to News Reports Regarding Petrobras

National Grid Drives Innovation Through REV Demonstration Projects

National Grid Drives Innovation Through REV Demonstration Projects

Cardinal Resources' $28.8 Million Cameroon Red Bird Contract Advances; Company Expects Financing Completed, Implementation, in Q3-15

Cardinal Resources' $28.8 Million Cameroon Red Bird Contract Advances; Company Expects ...

Letter From CGE Energy (McKenzie Bay Intl.) President Bryan Zaplitny

Letter From CGE Energy (McKenzie Bay Intl.) President Bryan Zaplitny

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 >>