Press Mention WEAR ABC 3 January 7, 2013
SACE Quoted
Whether to repair or shut down Crystal River Nuclear Plant, either decision could cost consumers
In this mention
Progress Energy Florida faces a critical decision on whether to repair or shut down the damaged Crystal River Nuclear Plant, which has been offline since 2009. The utility is in dispute with its insurer over who should pay for repairs estimated at up to $4 billion, with costs potentially passed to consumers nationwide. Clean energy advocates from the Southern Alliance for Clean Energy warn that consumers will lose regardless of the company's decision.
Simply put this is a mess for Progress Energy customers
George Cavros
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Progress Energy Florida told the Public Service Commission today, it is at an impasse with its insurance company.
The utility has to decide whether to repair the damaged Crystal River Nuclear Plant, south of Gainesville, or shut it down.
Either option could cost electric customers across the country.
The Progress Energy Nuclear Plant, has been out of commission since 2009.
The company is fighting with its insurer, National Electric Insurance Limited, or neil, over who should pay for a series of cracks in the containment wall caused by the botched replacement of generators. The company told the public service commission no settlement is in sight.
John Burnett/ Progress Energy Deputy General Counsel: "If we're unable to reach a settlement with NEIL, then the next step would be for more arbitration."
The settlement is crucial, though, in determining if the company or rate payers will be asked to cover what the insurer does not.
Charles Rehwinkel/ Office of Public Counsel: "Have a NEIL number and a repair number and there is a gap."
Progress says it will decide by summer if it will repair the plant. Those repairs now estimated to cost as much as four billion dollars.
Its attorney would not talk with reporters on the process.
Reporter: "Do you have to settle a repair first or do you have to get an answer from NEIL first?"
Bruce Ritchie/ Florida Current: "I'm sorry".
Clean energy advocates, The Southern Alliance for Clean Energy says, no matter what the company decides to do. consumers will lose.
George Cavros/ Southern Alliance for Clean Energy: "Simply put this is a mess for Progress Energy customers."
In the meantime the company is spending tens of millions in additional fuel costs that are being passed on to consumers.
The costs go beyond progress customers because utility systems across Florida buy power from Crystal River and they're paying more because the crippled plant is out of commission.
A large settlement with the insurer could also authorize it to asses other nuclear plants across the county, raising utility rates nationwide to cover the cost of repair.
Whether to repair or shut down Crystal River Nuclear Plant, either decision could cost comsumers
Tuesday, January 8 2013, 06:32 PM CST