Dive Brief:
- Staff of the U.S. Nuclear Regulatory Commission completed a final safety evaluation for licenses at two Florida reactors proposed by Duke Energy, and the company expects to receive a final decision in October, Politico Florida reports.
- The proposal includes two 1,100-MW reactors, and though Duke terminated construction contracts related to the project three years ago, it has continued to pursue the license.
- NRC staff's findings that there are no safety issues associated with the location alarmed opponents of the plant, who believed Duke had abandoned the project in 2013.
Dive Insight:
When Duke terminated contracts associated with a proposed nuclear facility in Levy County, Florida, the important detail wasn't the construction but rather the utility's agreement to not recover $65 million in pre-construction costs. Reports of the project's demise were premature.
It is still unclear if Duke is actually planning to build the project. The utility says it will pursue the license and then make a decision on whether the plant makes sense. But Politico Florida's story on the project's apparent resurrection is a good reminder of how complicated regulatory proceedings can be, even to those involved.
"My understanding was it was over, it was gone, it was dead, that they had no intention of building those nuclear power plants," state Rep. Mike Fasano (R), told the news outlet. He was a critic of the project, and said "I just assumed they would no longer proceed with getting a license."
The Associated Press in August 2013 reported Duke had backed away from the project due to delays.
Duke, in its announcement at the time, said that the Levy site was no longer an option "within the originally scheduled timeframe," but added the utility "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."
Now, however, any work done on the project is being done with shareholder monies rather than ratepayer. According to Duke, construction could provide more than 3,000 jobs at the Florida site and the plant could employ an estimated 800 to 900 full-time workers.
Along with the Levy site, Duke is also proceeding with a license for a site in Gaffney, S.C., at the Lee Nuclear Station.
Right now, new nuclear construction has faced hurdles such as a long lead time and intense web of red tape. Existing nuclear plants encountered high operating costs and competition from low natural gas prices, forcing utilities to shut them down.