Progress Energy Gets Approval To Take Next Step To Secure Florida's Energy Future
St. Petersburg, FL - The Florida Public Service Commission (PSC) took a significant step toward securing Florida's energy future recently by unanimously affirming the need for new generation and approving Progress Energy Florida's plans to build two advanced, state-of-the-art nuclear power plant units at a site in Levy County.
The vote does not represent a decision to build the nuclear plant. Progress Energy Florida expects to make that decision by early next year. But it is a critical milestone in ensuring that nuclear power remains a viable option for meeting Florida's growing needs.
"Carbon-free nuclear power is a strategic asset in our statewide effort to become energy-independent, to reduce our reliance on more volatile-priced fossil fuels, and to provide a balanced approach to meet the challenges of growth and climate change," said Jeff Lyash, president and CEO of Progress Energy Florida. "The communities we serve are continuing to grow, bringing increased demand for electricity, and Progress Energy is working to ensure that our energy supply remains as reliable in the future as it is today. Our balanced approach to meeting future demand includes expanded energy-efficiency programs, investments in renewable energy technology and state-of-the-art generating plants."
Progress Energy Florida has purchased about 5,100 acres in southern Levy County for the potential construction of two nuclear reactors. If built, the new plants would employ approximately 800 full-time, high-paying positions, generate another 1,000 to 2,000 indirect jobs and employ about 3,000 people at the height of construction.
If approved and built, the project would be among the first nuclear plants in the country to be constructed on a greenfield site in more than 30 years, and it would involve development of one of the single largest transmission infrastructure projects in Florida's history. Today's approval is one step in a lengthy process to ensure that nuclear energy remains a viable resource option for the future.
The next steps to be taken at the state and federal levels include the filing for cost recovery with the Florida PSC and the filing of a Combined Operating License (COL) application with the U.S. Nuclear Regulatory Commission (NRC), both expected later this summer. Gaining these and other regulatory approvals in a timely manner is critical to moving the project forward.
If plans continue to move forward and are approved by state and federal regulators, the two new advanced-technology reactors could begin operating in 2016 and 2017, respectively.
The company estimates the total cost of the project to be approximately $14 billion for the two units and an additional $3 billion for the necessary transmission equipment. This estimate includes land price, plant components, financing costs, construction, labor, regulatory fees and reactor fuel for two units and about 200 miles of transmission lines and associated equipment.
The estimated average annual customer cost increase is expected to be between 3 percent and 4 percent from 2009 to 2018. When the plants begin commercial operation in 2016-17, fuel savings — a direct cost savings benefit to customers — is estimated to be approximately $1 billion a year. The prices of oil, natural gas and other fossil fuels have risen dramatically in the last couple of years and continue to be highly volatile.
Despite what is expected to be a short-term economic downturn, Progress Energy Florida's service area remains one of the fastest-growing regions in the country. As the fourth-largest state, Florida ranks third nationally in per-capita energy consumption. Over the past three decades, the size of the average home has grown by 50 percent and uses 30 percent more electricity. Since the Crystal River nuclear plant came online in the mid-1970s, the company's customer base has more than doubled.
Fuel diversity is important to ensure a reliable, stable supply of electricity for customers. Progress Energy Florida has the most diverse fuel mix of any utility in the state, and is committed to a balanced mix of power generation alternatives, including natural gas, coal, oil, nuclear and renewable sources. This is the best way to continue to ensure a safe, reliable and economical source of electricity.
Nuclear power is one of three critical components of Progress Energy Florida's balanced solution to meet its customers' energy needs over the long term, which also includes the use of renewable energy sources, and one of the nation's best energy-efficiency programs.
Progress Energy Florida has developed and implemented some of the most innovative and aggressive energy-efficiency programs in the country. The programs encourage customers, businesses, contractors, and builders to use electricity more wisely and to adopt renewable-energy technology. Since 1981, Progress Energy Florida customers have saved more than $900 million in energy costs and eliminated more than 7.5 million tons of carbon dioxide through participation in these programs. Customers may visit www.savethewatts.com for more information and tips on how to save energy today.
SOURCE: Progress Energy