Progress Energy's $17B nukes approved by state regulators

Progress Energy's $17-billion nuclear project won approval Tuesday morning from state regulators, who voted unanimously that the the project is necessary and cost effective.

"It's an investment that pays off over time," said Public Service Commissioner Katrina McMurrian.

The St. Petersburg utility could start billing customers for the project as early as January. It remains unclear how it will impact monthly bills. Progress Energy said in March that residential customers could see an increase of $9 a month, but that number may have changed. The utility has redacted its latest estimates from recent state filings.

Progress Energy needs to return before the Public Service Commission in September for a hearing on how much it will charge customers for the project. The cost to customers will be made public in time for the September hearing, although it is unclear when.

"I also find the costs quite daunting," said Commissioner Lisa Polak Edgar. "But I think that it's a step we need to take."

What will you pay for Progress Energy's nukes? Sorry, that's confidential

Wondering how much you'll pay for Progress Energy's $17-billion nuclear plant? Sorry, that's confidential.

The St. Petersburg utility estimated in March that customers could see an increase of about $9 a month next year to help pay for the project. That number may have changed, but the utility blacked out the numbers in recent filings to state regulators, citing "confidentiality agreements."

The secrecy tests for the first time a 2-year-old state law that allows utilities to bill customers for nuclear projects years before the reactors start producing electricity. Under the law, the state's two largest utilities, Progress Energy and Florida Power & Light, want to raise monthly bills for more than 6-million electric customers across the state starting as early as January.

Progress Energy argues that disclosing the impact on monthly bills will jeopardize its negotiations with Westinghouse Electric Co. and the Shaw Group Inc. for the engineering and construction of the plant in Levy County. Consumer advocates say that customers need more information.

The impasse pits private interests against the public's right to know. "We're not hiding the ball on any of this," said Alex Glenn, general counsel for Progress Energy Florida. "But, again, we're under certain confidentiality agreements."

Read more here.

-Asjylyn Loder, Times staff writer

The nuclear convert: Patrick Moore

I asked Greenpeace to respond to my interview with its former co-founder Patrick Moore (published today in the St Petersburg Times), who has emerged as a leading advocate of nuclear energy. Greenpeace accused Moore of selling his soul to the nuclear industry as a paid spokesman.

"He has gone to work for every polluting industry he once opposed," said Jim Riccio, Greenpeace's Nuclear Policy Analyst. "The only thing he hasn't flip-flopped on is the clubbing of baby seals."

Riccio also questioned the independent poll cited by Moore, claiming it was conducted by a former vice-president of the Nuclear Energy Institute, which represents the industry.

Here is Greenpeace's statement:

Progress Energy nukes get favorable review from state staffers

Nudging Progress Energy’s nuclear ambitions forward, the Florida Public Service Commission staff on Thursday issued its opinion in favor of Progress Energy’s planned $17-billion nuclear project in Levy County.

The St. Petersburg utility wants to build two new 1,100-megawatt nuclear reactors on U.S. 19 about ten miles north of its Crystal River power station. The staff opinion agreed with Progress Energy that the utility needs more electric capacity to meet the demands of the growing region, and that nuclear is the most cost-effective way of meeting that need.

The commission does not always follow the staff recommendations, but the approval is a powerful endorsement of the utility’s plans. The commission has already voted in favor of a similar project near Miami planned by Florida Power & Light. The five-member commission is slated to vote on Levy project on July 15.

-Asjylyn Loder, Times staff writer

How much will Progress Energy's nukes cost? Sorry, that's redacted

Wondering what Progress Energy's nuclear project will cost you? Sorry. That's not public information.

Progress Energy has blacked out its cost estimates for its Levy County nuclear project in recent filings with the Florida Public Service Commission. The utility had offered a public estimate in March of $17-billion, saying customers could see an increase of about $7.50 per 1,000 kilowatt hours starting as early as January. Now, the utility has asked the commission to black out its latest estimates on how the project could impact monthly bills. So why redact the cost estimates now?

"We have said all along that they are subject to change," said utility spokesman C.J. Drake. (This is true. This story notes their frequent use of the word "non-binding" in their cost estimates.)

Does that mean the cost has gone up or down?

McCain's energy policy flips and flops; top aide says he's just pragmatic

The Los Angeles Times takes a long look at presidential candidate John McCain's votes on energy issues over the years and finds that "the Arizona senator has swerved from one position to another . . ., taking often contradictory stances on the federal government's role in energy policy."

Specifically:

*"At times he has backed measures to ease restrictions on oil drilling off the coast and in Alaska's Arctic National Wildlife Refuge. Other times he has voted to keep them. He has championed standards to require that automakers make vehicles more fuel-efficient, yet opposed standards to require that utilities use less fossil fuel by generating more power from renewable sources, such as wind and solar.

*"McCain has rejected federal tax breaks for renewable energy producers, but backs billions of dollars in subsidies for the nuclear industry.

*"He has criticized corn-based ethanol for doing "nothing to increase our energy independence." Yet while campaigning in 2006 in the Midwest corn belt, McCain called ethanol a 'vital, vital alternative energy source.' "

A senior policy advisor to the Arizona senator explained that his changing positions simply reflect a pragmatic approach to governing. "Sen. McCain is interested in getting results," he said.

[AP photo of Sen. McCain giving speech on energy in Las Vegas June 25]

--Craig Pittman

Tampa Bay energy roundup

There's a bunch of energy news around Tampa Bay in the last few weeks. Rate increases are coming so fast and thick it's hard to keep track of what it's all for.

Let's start with this week's news. Tomorrow, Progress Energy and Florida Power & Light, as well as some smaller Florida utilities, will ask the Public Service Commission for a rate increase for fuel. (My story in Sunday's paper explained why fuel is getting so expensive.) The gist is that utilities are not allowed to profit from fuel. It's a "pass through" charge. If approved, it will hit bills on Aug. 1.

Tampa Electric isn't asking for a fuel rate increase yet, but it has asked for a base rate increase. Utilities can profit from base rates. (From a shareholder point of view, utilities had better show a profit.) Tampa Electric and Peoples Gas, both owned by Tampa-based TECO Energy, requested base rate increases that it hopes to add to bills by next May.

As if this news isn't enough of a bummer, there are more increases on the horizon. First, fuel again. Every Fall, the utilities estimate what they will pay for fuel the following year. Fuel costs are up nationwide, and Florida is no different. (If a hurricane hits the Gulf coast, fuel costs could get a lot worse.) Progress Energy has already predicted that it will ask for additional fuel rate increases that will start in January. (This is on top of the increase sought Tuesday.) Expect similar news from Tampa Electric, Florida Power & Light, and pretty much every utility that buys fuel to run its power plants (i.e., every utility.)

Highlights of the Miami Climate Change Summit #2 from solar to PHEVs.

Looking back at Governor Crist's Climate Change Summit this week, here are some of my favorite moments, featuring a former day-trader turned solar enthusiast, Progress Energy's plug-in hybrid Toyota Prius, a new $20 million clean energy prize offered by the Scottish government, a Spanish company that is investing $8 billion in alternative energy in the United States, a new $20 million clean energy prize, and of course, the return of Arnold, The Terminator, and much, much more .....

McCain goes nuclear

Senator John McCain has issued a call for the construction of 45 new nuclear reactors by 2030 in order to reduce dependence on foreign oil.

That would be an increase of almost 50 per cent over the 104 nuclear reactors currently operating around the country which produce about 20 percent of the nation's annual electricity needs. More than 30 new nuclear reactors are planned throughout the nation, including four in Florida.

He also set a longer term goal of adding a further 55 plants in the future.

Click here to read the story.

- David Adams

Obama: Energy key to his economic plan

The heart of Sen. Barack Obama's economic plan is to spend $15 billion a year for 10 years on energy technology, according to an interview he gave the Wall Street Journal today. That technology would focus on wind, solar, and nuclear energy.

That $15 billion "would be funded by revenue collected from a separate Obama proposal to cap greenhouse emissions through a system of trading pollution permits," the Journal reports. "Sen. Obama would auction those permits to producers of carbon dioxide, such as electric utilities, and figures the sales would yield about $100 billion a year. Most of that would go to consumers as rebates on utility bills, he said."

In addition, the Democratic presidential candidate told the Journal, he would set up an "infrastructure reinvestment bank" that "would finance $60 billion in high-speed railways, improved energy grids and other projects over a decade."

The Republican candidate, Sen. John McCain, is less enamored of government intervention in the energy market. He has taken to saying Sen. Obama would represent "Jimmy Carter's second term," says the Journal. But Obama told the Journal that large-scale government intervention in the energy market is necessary. While McCain argues that venture funds are investing heavily in energy technology, Obama contends there is a gap in funding between innovation and commercialization that should be filled by Washington.

"You have this point in time when things haven't quite taken off yet and still entail huge risks," he said.

[Photo: Getty Images]

--Craig Pittman

FPL nuke shutdown at St. Lucie: Loss of pump leads to one reactor down

Florida's largest utility, Florida Power & Light, shut down one of the two reactors at its St. Lucie nuclear plant yesterday, according to Reuters.

FPL officials told the Nuclear Regulatory Commission they shut the 839-megawatt Unit 2 at the Saint Lucie nuclear power station from full power due to the loss of a main feedwater pump, Reuters reported.  Unit 1 continued to operate at full power.

"The company said a heater drain pump tripped resulting to then trip of a main feedwater pump that caused the water level in the steam generators to decline," Reuters reported. "Operators tripped the reactor due to the lowering steam generator level."

[Photo from Google Earth by John Panicci]
--Craig Pittman

How will $17-billion nuclear project impact your bill?

Wondering how Progress Energy's nuclear project will impact your monthly bill? Take a look at this graphic:

Progress Energy asks DEP to approve new nukes, power lines

Progress Energy filed for environmental approval of its plans to build a new nuclear plants and 200 miles of transmission lines.

The St. Petersburg utility filed the site certification application Monday, said spokeswoman Cherie Jacobs. Public hearings will begin in 2009. The entire process could take 12 to 15 months.

Progress Energy plans to build two 1,100-megawatt reactors in Levy County, about eight miles north of its Crystal River power station. The utility also plans to run 200 miles of new and upgraded transmission lines to carry power from the plant. (See maps of transmission lines here.)

Progress Energy having twins? Maybe not

Progress Energy faced close questioning Thursday on the need for both of its planned nuclear reactors, or whether it might be cheaper for customers to build just one.

Thursday was the second of three days of hearings by the commission to determine if Progress Energy's customers need more electricity, and if nuclear is the cheapest option for customers.

Opponents of the project say the utility underestimated costs, overestimated the cost of greenhouse gas emissions caps, and overestimated the need for new power. Progress Energy stands by its estimates, and said nuclear is the cleanest and cheapest form of power, and will save customers money on natural gas in the long run.

$17B nuclear cost estimate "pure speculation," critics say

Progress Energy came under fire Wednesday from critics who say its $17-billion nuclear plan offers few guarantees to consumers picking up the tab.

The St. Petersburg utility has yet to sign a contract for its reactors. Its cost estimate remains non-binding. The utility argued against a cap. And Jeff Lyash, Progress Energy president and CEO, couldn't say when he'd pull the plug if costs soared higher.

Leon  Jacobs, an attorney representing the Southern Alliance for Clean Energy, said that Progress Energy's cost estimate for nuclear is "pure speculation." The utility overestimated demand, and failed to factor in energy-savings measures on the horizon, like solar hot water heating and energy efficient appliances and construction.

Progress Energy wants to build two new 1,100-megawatt reactors in Levy County, several miles north of Crystal River. On Wednesday, the Florida Public Service Commission convened the first of three days of hearings to determine if the utility needs the electricity, and if nuclear is the best and cheapest option.

PSC gets an earful on Progress nukes

The first of three days of hearings on Progress Energy's planned nuclear project in Levy County opened this morning with harsh criticism from opponents who say it's too expensive, unnecessary and even a magnet for terrorist attack.

Critics called Progress Energy's plan to build a new nuclear power plant "stupid" and "so expensive they might as well be made of gold."

Progress Energy plans to build a $17-billion nuclear project, including two new nuclear reactors in Levy County, north of Crystal River, and 200-miles of upgraded transmission lines. Progress Energy customers could begin to see the cost -- about $9 a month for the average residential customer -- as early as next year.

The commission must determine if Florida needs the 2,200-megawatts of power, and if nuclear is the most cost effective option.

Progress Energy says nuclear has a steep building cost, but will provide cheaper power because the fuel cost is far less expensive than natural gas. But critics say Progress Energy has overestimated the need for new power, and that customers will be stuck with a multi-billion dollar boondoggle.

Check back later for updates on hearing.

-Asjylyn Loder, Times Staff Writer

Progress maps new power lines

Backyard warriors around Tampa Bay can breathe easier today, as Progress Energy maps out 200 miles of planned transmission that avoids the most controversial obstacles.

None of the new 200-mile transmission project will be built in Pasco County, where residents hotly opposed an east-west corridor along S.R. 54. In Pinellas County, the lines will entirely avoid both Brooker Creek Preserve and the Crescent Oaks subdivision, to the relief of environmentalists and homeowners.

All but 20 miles of the project will follow existing transmission corridors, including an upgraded line that will run from Oldsmar east through Hillsbourough County. New transmission corridors will slice through part of northwest Citrus County and southwest Levy County, along a stretch south of Wildwood near Leesburg in Sumter County, and a small swathe northwest of Brookridge in Hernando County.

“Transmission is probably the hardest thing we build because it impacts the most people directly,” said Jeff Lyash, president and CEO of Progress Energy Florida.

The $3-billion project will carry power south from Progress Energy’s $14-billion planned nuclear power plant in Levy County, several miles north of Crystal River along U.S. 19. The utility will file in June for environmental approval from the Florida Department of Environmental Protection for both the plant site and the power lines. The process will take 12 to 18 months.

New nukes really needed in Florida?

As Florida's growth stalls and demand for electricity ebbs, the state faces a $30-billion question: Do we need a massive investment in new nuclear power?

Progress Energy's application for a new nuke plant in Levy County goes to the Public Service Commission this week. Although Gov. Charlie Crist has touted nuclear energy as one alternative to coal in fighting greenhouse gas emissions, the question the PSC faces is:  Does Florida really need new nukes?

Florida's largest electric companies are already reeling from a one-two punch of stalled economic growth paired with declining household energy use. The combined trends pummeled electricity sales, leaving Progress Energy, Tampa Electric and Florida Power & Light facing the slowest growth they have seen in nearly a decade.

The sluggish economy calls into question the need for the state's "nuclear renaissance," including the $17-billion Progress Energy plans to spend on its Levy County project, and $12-billion or more Florida Power & Light plans to invest in two new reactors near Miami.

A recent report from the University of Florida predicted the slowest growth in 30 years, with a 1.1 percent annual increase from 2007 to 2010, edging up to 1.6 percent from 2010 to 2020. Both Tampa Electric and Florida Power & Light predicted less than 1 percent growth this year.

To read more click here.

--Asjylyn Loder

[Douglas R. Clifford, Times files]

Florida solar energy chief says new nuke plants are a bad idea

Last year, Gov. Charlie Crist featured the director of the Florida Solar Energy Center as one of the speakers at his Climate Change Summit. The governor has frequently listed both solar and nuclear power as alternatives to burning coal for power, because they don't produce greenhouse gases.

But now Florida Solar Energy Center Director Jim Fenton says nukes are not the answer. Even though Crist still backs the nuke plants, Fenton contends they're too expensive and take too long to build. Instead, he argues, the state should combat climate change primarily by conserving energy.

In fact, Fenton contends, conservation is better than building ANY alternative power sources -- even solar.

"Can we afford to wait ten years for a nuclear power plant to provide our electricity, even if it produces little to no carbon emissions?" Fenton writes in the latest issue of The Energy Chronicle. "We should focus on using less energy rather than trying to find alternative ways to produce energy. Since 51 percent of Florida's electricity needs come from our homes, we should make our existing homes more energy-efficient rather than building more power plants."

After all, Fenton points out, unlike with the new nuclear plants that have been proposed in Levy County and in Miami-Dade County, "you don’t have to wait 10 years to start seeing the advantages of having an energy-efficient home. Once your home is made more energy-efficient, you’ll start seeing the savings right away."

A spokesman for Progress Energy, which wants to build a new nuke plant in Levy County, says energy efficiency is good but it's not enough all by itself. "We believe the best answer combines several approaches," including nuclear plants, said Buddy Eller of Progress Energy.

--Craig Pittman

NRC chairman sees "an exuberance" about rebound of nukes

Dale Klein, who has been chairman of the Nuclear Regulatory Commission since 2006, said during a visit to Florida this week that there is "an exuberance" about the rebound of interest in nuclear energy. He predicted that no matter who wins the presidential election, nukes are going to be used as a tool in battling global warming.

"No matter who comes in, the cold, hard facts of increasing demand and limited options is going to result in nuclear power staying at the forefront," Klein, whose term as chairman runs until 2011, told the St. Petersburg Times.

The rebound is particularly visible in Florida, where four new nuke plants have been proposed, and where Gov. Charlie Crist is advocating the new nuke plants as part of his climate change crusade.

"Your demand is growing, people are still moving to Florida, and they like to run the air conditioning in the summer," Klein said.

--Asjylyn Loder

McCain backs cap-and-trade...and nukes too (and takes a swipe at President Bush)

In a speech that shows him distancing himself from President Bush, Republican presidential nominee John McCain today promised to do a lot more to battle global warming than the current administration has. His speech speech at an Oregon wind-turbine factory seemed aimed at appealing to Democrats and independent voters, according to the Associated Press.

McCain called for a cap-and-trade system to reduce carbon emissions -- but also said he thinks nuclear energy is a clean alternative that would help reduce carbon, a position that usually gives environmentalists serious heartburn.

McCain's swipe at Bush was far from subtle: " “I will not permit eight long years to pass without serious action on serious challenges…  The United States will lead.”

McCain's proposed cap-and-trade is similar to the position taken by Democratic candidate Barack Obama and Hilary Clinton -- though not identical, notes an analysis by the Wall Street Journal.

"Sens. Obama and Clinton, also back legislation to cap carbon-dioxide emissions and to allow for trading credits, but they favor an approach that is much tougher on major carbon emitters," the Journal points out.

Growth will make a comeback; nuke plans still on, Progress Energy CEO says

Despite the slowdown, Florida still needs new power plants to fuel its long term growth, said Jeff Lyash, chief executive officer of Progress Energy Florida.

The St. Petersburg utility will continue to pursue plans for a $17-billion nuclear plant in Levy County, he affirmed Thursday afternoon.

"We don't react when the market overheats," Lyash said. "Neither do we change our plans dramatically during the ebbs in the cycle."

Lyash said he couldn't predict when the economy would turn around, but that he's already noticing signs that the downturn has started to "solidify," signaling that bottom may have been reached.

We love nukes, we love them not....

What's true of brussels sprouts and musicals holds true of Progress Energy's $17-billion nuclear plan for Levy County: You either love it or you hate it.

Progress Energy plans to build two Westinghouse AP1000 reactors in Levy County, a few miles north of its Crystal River power station.

For more about yesterday's Public Service Commission meeting in Crystal River, click here.

-Asjylyn Loder, Times Staff Writer

Read more about Progress Energy's nuclear plans here.

This is an aerial picture of the Crystal River power station, which includes a nuclear plant. The large cooling towers pictured at the top are actually not a part of the nuclear plant, but cool the coal plants on the site. The Levy County plant will be built several miles north along U.S. 19.

View Larger Map

Nuke news is guards' snooze

Sleeping guards at a South Florida nuclear plant earned a hefty fine for the Florida's largest utility. Florida Power & Light faces a $130,000 fine for catnapping security at its Turkey Point nuclear plant, the Nuclear Regulatory Commission on Thursday.

The NRC ''concluded that on multiple occasions during 2004-2006, security officers at Turkey Point were willfully inattentive to duty, or served as lookouts such that other security officers could be inattentive to duty,'' the commission said in a letter to FPL dated Tuesday.

While the guards were employees of Wackenhut, NRC officials said in their letter, ``FPL failed to thoroughly evaluate and address the root and contributing causes of security force inattentiveness and the complicity and facilitation by other security personnel of behavior while on duty."

In other nuke plant news, Georgia Power has reached an agreement with Westinghouse Electric Co. and The Shaw Group to design and build two 1,100-megawatt nuclear reactors at Plant Vogtle in east Georgia, which is co-owned with other utilities and already is home to two reactors. "Combined with the existing reactors, the units would make Plant Vogtle, along the Savannah River southeast of Augusta, one of the nation's largest generators of nuclear power," the Associated Press reports.

To read more about the NRC fine, click here and here. To read about the Georgia nuke plants, click here.

--Asjylyn Loder and Craig Pittman

Florida Gives Green Light to New Nukes

Florida Power & Light today won state approval to build the state’s first new nuclear plants in more than two decades.

The unanimous decision this morning from the Florida Public Service Commission paved the way for the utility to build two new nuclear plants at its Turkey Point power station, 25 miles south of Miami. It also signalled the state’s unwavering support for new nuclear power, despite cost estimates that have tripled in little more than a year.

The project could cost $12-billion to $24-billion, depending on the type of reactor FPL selects. It would be among the largest investments ever undertaken by the nation’s electric industry, and perhaps the most expensive construction project ever built in Florida.

“This is a very historic day in the state of Florida,” said Commission Chairman Matthew Carter.

Florida needs to diversify its fuel supply, reduce greenhouse gas emissions, and ensure reliable power for its growing population, the commissioners emphasized.

“Simply put, nuclear power is a strategic investment for the state of Florida,” said Commissioner Nathan Skop.

Commissioner  Katrina McMurrian echoed his support, saying, “Nuclear power has served us safely, reliably, and economically for decades.”

Customers of the Juno Beach utility could start paying for the reactors next year. A Florida law passed in 2006 allows utilities to charge customers for certain costs years before the plants start producing power. For example, the utility plans to pay $16-million to hold a place in line at Japan Steel Works, the only company in the world that can make the large metal forgings the plants will need.

FPL still has to clear a number of regulatory hurdles before construction can begin. The utility has yet to file a license application with the federal Nuclear Regulatory Commission, which could take close to three years.

The decision Tuesday is good news for St. Petersburg-based Progress Energy. The utility last week asked the commission for approval to build two new reactors in Levy County, several miles north of its Crystal River power station. Progress Energy estimated the cost at $17-billion, although it insisted that the estimate is “non-binding” and could go much higher.

The price tag for Progress Energy’s nuclear ambitions tripled since the utility announced its plans in late 2006. The skyrocketing costs have reverberated throughout the Southeast, where five other utilities plan similar projects, including Progress Energy’s sister utility in North Carolina.

Plans have been announced for a dozen Westinghouse AP1000 reactors scattered throughout the Southeast. Florida Power & Light is also leaning toward the Westinghouse technology, bringing the total to 14. FPL’s estimate for the Westinghouse reactors ranges from $12-billion to $18-billion.

The nuclear industry is concerned that the new estimates could leave customers with sticker shock. Duke, South Carolina Electric & Gas, and Georgia Power have yet to revise their cost estimates, as negotiations continue with Westinghouse.

The industry is slowly recovering from a credibility hangover from the first round of nuclear construction. The first wave of nuclear plants in the 1960s and early 1970s were built in four to five years, and cost about $500-million, according to the Nuclear Energy Institute, an industry trade group. By the late 1970s and early 1980s, construction was taking 10 to 12 years, with costs as high as $5-billion.

Nuclear opponents in Florida worry that the industry could be in for a repeat.

Bill Newton, executive director of the Florida Consumer Action Network, said the utilities have greatly overestimated the need for new power. Florida’s growth has slowed, even as energy efficiency measures become more popular. In addition, the costs of new nuclear could continue to rise, with Florida’s consumers on the hook. Newton worried that Florida’s electric customers could be left holding the bag if the bottom falls out of the industry.

“It’s scary,” Newton said. “It really is.”

-Asjylyn Loder, Times Staff Writer

Nuke plant cost triples

Progress Energy tripled its estimate for its new nuclear power plant in Levy County, saying Monday that the new price is $17-billion. Customers could start paying for it next year, with the average residential customer facing an increase of about $9 a month.

"You can't avoid the notion that nuclear has an upfront cost for the customer," said Jeff Lyash, president and chief executive of Progress Energy Florida. "It does."

Nevertheless, Gov. Charlie Crist is still supporting the new plant. "I think this is an investment in Florida's future that is important to make," he said. "It will ultimately result in lower costs for customers because of the rising costs of oil and natural gas."

To read the full story published today in the St. Petersburg Times, click here.

--Asjylyn Loder