New Projects, Reactors

Duke shelves plans for Levy nuclear plant in favor of gas

Duke Energy Florida (NYSE: DUK) announced today it is terminating its EPC agreement for the proposed Levy County nuclear plant in Florida and putting the project on hold indefinitely.

In its revised settlement agreement with the Florida Public Service Commission, Duke said it would write off $295 million associated with the botched Crystal River 3 project and $65 million related to investments in the Levy project. Duke will also accelerate the recovery of $135 million in cash flows related to Crystal River 3, the company said in a press release.

Announced in 2008, the Levy nuclear project would have included two 1,100 MW nuclear reactors in Levy County, Fla. Duke said the “company still continues to regard the Levy site as a viable option for future nuclear generation and understands the importance of fuel diversity in creating a sustainable energy future.”

In its settlement agreement, the company announced it would establish “a framework for Duke Energy Florida to construct or acquire natural gas-fired generation.

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