Tag Archives: Progress Energy

NRC rejects nuke permit for EDF in Maryland

French nuclear operator Électricité de France (EDF) was denied a license last week for the proposed Calvert Cliffs nuclear reactor in Maryland, because the Atomic Energy Act of 1954 prohibits majority foreign ownership of nuclear plants. EDF now has 60 days to find a U.S. partner, or give up the project. Who could the possible suitors be? Hint: think southeast.

The handwriting was on the wall two years ago when Constellation Energy pulled out of the project. Jim Polson and Alan Katz wrote for Bloomberg 10 October 2010, Constellation Drops Nuclear Plant, Denting EDF’s U.S. Plans,

Constellation Energy Group Inc. pulled out of negotiations on a $7.5 billion loan guarantee to build a nuclear reactor in Maryland with Electricite de France SA, potentially damaging the French utility’s U.S. expansion plans and the companies’ partnership.

The cost of the U.S. government loan guarantee that the companies’ joint venture, UniStar Nuclear Energy, would need to build the Calvert Cliffs 3 reactor is too high and creates too much risk for Constellation, the Baltimore-based utility said in a statement yesterday. The statement said the next step is up to EDF. Enlarge image U.S. Deputy Energy Secretary Daniel Poneman

In a letter Oct. 8 to Daniel Poneman, deputy secretary of the U.S. Department of Energy, Constellation said it received a government estimate that the venture would have to pay about $880 million to the U.S. Treasury for the loan guarantee, “dramatically out of line with both our own independent assessments and of what the figure should reasonably be.”

Constellation’s decision may make it more likely that the U.S. utility will exercise a put option forcing EDF to buy as much as $2 billion of Constellation’s non-nuclear power plants, said Ingo Becker, head of utilities sector research at Kepler Capital Markets.

“EDF very clearly said if they exercise the put, this thing is over,” Becker said. “Constellation may have just turned around the calendar and pulled out of the new build before exercising the put, anticipating EDF’s reaction.”

In a letter Oct. 8 to Daniel Poneman, deputy secretary of the U.S. Department of Energy, Constellation said it received a government estimate that the venture would have to pay about $880 million to the U.S. Treasury for the loan guarantee, “dramatically out of line with both our own independent assessments and of what the figure should reasonably be.”

Meanwhile, Southern Company is still trying to reduce what it has to pay for its $8.3 billion federal loan guarantee.

Back in Maryland, the news got worse for the nuke last year. EDF asked for the state’s help, but didn’t get the answer it wanted. Scott Dance wrote for Baltimore Business Journal 16 December 2011, EDF: Constellation-Exelon settlement hurts Maryland nuclear industry,

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Duke and Progress to buy Santee-Cooper’s Summer nuke?

I erred in saying Duke owns nuclear Summer Station in North Carolina: it’s actually owned by SCANA and Santee Cooper. But I wasn’t as wrong as I thought. It looks like somebody’s been pressuring Duke and Progress, the two utilities currently maybe merging, to buy Summer.

John D. Runkle, attorney for NC WARN, hand-delivered a letter to Robert Gruber Executive Director Public Staff of the NC Utilities Commission on 18 June 2012, Re: INVESTIGATION — Duke-Progress Merger

In preparing comments on the Duke-Progress merger on behalf of the NC Waste Awareness and Reduction Network (NC WARN), we came across several reports that South Carolina officials, including the South Carolina Public Service Commission, were pressuring the utilities to purchase the State-owned Santee Cooper’s shares of the V.C. Summer Nuclear Generating Station.

Santee Cooper owns one-third of the present reactor and 45% of the proposed units 2 and 3. Based on the recent cost estimate of $9.8 billion, buying Santee Cooper’s share would add about $4.5 billion to the cost of the merger. But those are low-ball estimates; other nuclear units in the Southeast are projected to cost roughly twice as much. Realistically, purchasing Santee Cooper’s share would likely add much more to the cost of the merger.

We were unable to find any filings in either the South Carolina or North Carolina dockets regarding the V.C. Summer Station. If a purchase of nuclear units in South Carolina has been made a condition to the merger, it should be part of the public record, and not as some backroom negotiation.

I’d like to see that.

Even more I’d like to see this:

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Florida utility delays nuke, asks for rate hike

Florida is already experiencing a likely future for the new Plant Vogtle nukes in Georgia: completion date pushed back, and customer charges raised.

Fred Hiers wrote for Gainesville.com 1 May 2012, Progress asks for nuke fee hike,

Progress Energy announced Tuesday that it is hiking the estimated cost of its proposed Levy County nuclear plant and pushing the plant’s completion date back to 2024.

Progress Energy also said it plans to ask Florida regulators to increase customers’ bills to upgrade Progress’ damaged Crystal River nuclear plant.

Progress said in a press release that the new cost of the plant could be as high as $24 billion. The previous estimate was about $2 billion less. The plant was originally slated to go online in 2016, but that deadline continues to get pushed back.

2016 to 2024? An eight year delay? And from $22 billion to $24 billion, or 9% more? It looks like Progress Energy has started down the path of many $billion cost overruns that The Southern Company and Georgia Power already went down 30 years ago and have already started back down again. Georgia Power customers: don’t be surprised if your rates go up more for nukes that get pushed still farther into the future.

Meanwhile, by John Hanger’s estimates, an extra $1 billion would buy about 450 MW of wind power or about 330 MW of solar power. So that $2 billion expected cost rise would buy about Continue reading →

Thanks for CHIP and lower monitors; also solar just to the south —John S. Quarterman @ LCC 27 Sep 2011

I thanked the Commission for doing the right thing about the CHIP grant. And for at least three people sitting up front (Evans, Paulk, and Pritchard) lowering their monitors so citizens (and even cameras) could see their faces.

Then I relayed the news about the $1.5 billion investment in Gadsden County, Florida for a 400 MW solar project. Plus ongoing jobs, expanded education, private sources of investment, and customers for the electricity. Unlike the failed local biomass project, National Solar Power’s Gadsden County project already has Progress Energy signed up as a customer for its electricity. I recommended that the Commission go on record as being in favor of such projects locally.

Here’s the video:


Thanks for CHIP and lower monitors; also solar –John S. Quarterman @ LCC 27 Sep 2011
Regular Session, Lowndes County Commission (LCC),
Valdosta, Lowndes County, Georgia, 27 September 2011.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

-jsq