Press Mention Huffington Post February 4, 2013
Topical Mention
Crystal River Nuclear Plant, Owned By Duke Energy, Closing Due To Botched Repairs
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Duke Energy announced the permanent closure of its Crystal River Nuclear Plant in Florida after botched repairs made the facility uneconomical to operate. The company will use $835 million from an insurance settlement to refund consumers but seeks to recover its $1.65 billion investment over 20 years. The plant has been shut down since 2009 when its containment building cracked during maintenance.
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Crystal River Nuclear Plant, Owned By Duke Energy, Closing Due To Botched Repairs
AP
By EMERY P. DALESIO
Posted: 02/05/2013 10:16 am EST | Updated: 02/05/2013 3:57 pm EST
The reactor building at the Crystal River Nuclear Plant seen during a tour held for broadcast and print media, in Crystal River, Fla., Tuesday, June 14, 2011. Charlotte, N.C.-based Duke Energy said Tuesday, Feb. 5, 2013 it will permanently close its Crystal River Nuclear Plant north of Tampa, after botched repairs and use $835 million from an insurance settlement to refund consumers forced to pay for higher-cost replacement power. (AP Photo/Will Vragovic, Pool, File)
RALEIGH, N.C. (AP) — The largest U.S. electricity company said Tuesday it will permanently close a Florida nuclear power plant after botched repairs and use $835 million from an insurance settlement to refund consumers forced to pay for higher-cost replacement power.
But Charlotte, N.C.-based Duke Energy also said it will seek to recoup from customers its $1.65 billion investment in the Crystal River Nuclear Plant, about 70 miles north of Tampa. The company said it is starting a closing process that may take 60 years before the nuclear site is decontaminated and dismantled and considering whether to build a new, natural-gas-fueled power plant to replace the power lost.
The nuclear plant operated by Duke Energy subsidiary Progress Energy Florida has been shut down since 2009, when its concrete containment building cracked during a maintenance and upgrade project. A 2011 repair attempt resulted in new cracks in other parts of the containment structure. Estimates put repair costs at between $1.3 billion and $3.4 billion.
The federal operating license for the nuclear plant, which began operating in 1977, was due to expire at the end of 2016, meaning Duke Energy would have had to wage a regulatory fight to extend its authority to operate.
"We believe the decision to retire the nuclear plant is in the best overall interests of our customers, investors, the state of Florida and our company," Duke Energy Chairman and Chief Executive Jim Rogers said in a statement.
Rogers' expected successor following Duke Energy's merger last July with Raleigh-based Progress Energy, which owned Crystal River, was unexpectedly fired within hours after the combination was completed. Duke Energy board members said they dumped former Progress Energy CEO Bill Johnson in part because of dissatisfaction over his handling of the Crystal River closing.
Duke said in a filing with the Securities and Exchange Commission that it would seek to recover its investment in Crystal River over a 20-year period beginning in 2017, an amount that spokesman Mike Hughes said was $1.65 billion.