nuclear-news

The Public Counsel’s case against Progress Energy’s plan for nuclear plant costing

Jacobs makes six points to support his argument that Progress plans to delay construction of the Levy plant until 2027:

* Progress is diverting the attention of key Levy project managers to other activities. Among them: Jeff Lyash, former president and CEO of Progress Energy Florida, whom Jacobs describes as the Progress officer responsible for the Levy project.

* Progress’ own analysis shows that trends in fuel costs are making nuclear power relatively less cost effective than other sources.

* The trend in natural gas prices and lack of progress toward legislation regulating greenhouse gases increase the utility’s “enterprise risk.”

* Progress had hoped to find a partner to share ownership (and financial risk) of the project, but that has become less likely because of cost increases and regulatory delays.

* Public support for nuclear plants has diminished since the meltdown at Japan’s Fukushima plant.

* Finally, Progress, having considered all those factors, seems to be planning for the possibility of delaying the plant opening until 2027.

Jacobs based that last conclusion on the redacted “Scenario Analysis” Progress gave to the Public Counsel’s Office.

In written testimony to the PSC, Jacobs wrote that Progress Energy’s “actions continue to demonstrate doubt as to the likelihood of completion of the project on the current schedule – if at all.” Jacobs uses “if at all” three times in his report referring to the possibility of the plant never getting built.

Progress turned over an un­redacted version of the “Scenario Analysis” only after Jacobs completed his report. But the Public Counsel’s office had to agree to keep it secret……. http://www.utilityproducts.com/news/2011/08/1478674934/doubts-cloud-nuclear-pay-plan.html

August 15, 2011 - Posted by Christina Macpherson | business and costs, USA