AP Photo Duke close to getting license for nuclear plant many thought was dead Said three years ago it was scuttling construction contract for project

TALLAHASSEE — When Duke Energy Florida announced in 2013 that it was terminating a construction contract for a proposed new nuclear plant in Levy County, Joanne Farrell of Rainbow Springs, who organized opposition to the facility, thought the project was dead.

So did former Rep. Mike Fasano, a Republican from New Port Richey who was an outspoken critic of Duke Energy. As a legislator in 2013, he sought to repeal a 2006 law that allowed the utility to charge customers for the plant even if it was never going to be built.


But now, three years later, Duke Energy says it is poised to get a federal license to build and operate the plant this fall. On June 6, the Nuclear Regulatory Commission announced it had completed a final safety evaluation report for the plant, which could lead to a vote on issuing the license.

"My understanding was it was over, it was gone, it was dead, that they had no intention of building those nuclear power plants," Fasano said. "I just assumed they would no longer proceed with getting a license."

"All I know is what I read in the news," said Farrell, who collected petition signatures opposing the plant and a proposed rail line to serve it through the Rainbow Springs area in Levy County. "That all makes it look like 'No, they are not going to do that.'"

But they could. A Duke Energy spokeswoman said this week that the company has continued to pursue the federal license and will evaluate whether the nuclear plant should be built.

"We continue to regard the proposed nuclear plant in Levy County as a viable option for future [power] generation and recognize the importance of fuel diversity in our generation portfolio," said Rita Sipe, manager for nuclear communications for Duke Energy in Charlotte, North Carolina.

Rather than deception by Duke Energy, this may be a case of some people hearing what they wanted to believe in 2013, or hearing incomplete news reports.

People familiar with the settlement agreement reached with the Public Service Commission say that it was no secret that Duke would keep working on getting the license.

What Duke announced in 2013 was a revised settlement agreement with the PSC dealing with both the closed nuclear generating unit at the Crystal River power plant, along with coal units there, and the proposed nuclear plant in Levy County.

Duke had stopped working on an upgrade of its nuclear plant at Crystal River after a crack was discovered in a containment building. The agreement included Duke terminating an engineering and construction contract for the Levy nuclear plant and write-off of $65 million already spent on the project.

The Associated Press reported that Duke customers already had paid $1.5 billion towards the Levy County plant before construction even began.

"Duke Energy says it is scuttling plans to build a $24.7 billion nuclear power facility in a small Gulf Coast county in Florida," the Associated Press reported initially. The wire service added that the utility "did not close the door on future nuclear projects in Florida."

Duke Energy had, in fact, scrapped its construction plans at the Levy nuclear site but had not killed the idea of ever building there.

Duke's announcement in 2013 is remarkably similar in wording to Sipe's email this week stating that the Levy nuclear site remains a viable option towards achieving fuel diversity. The announcement continued, "Because of this, the company will continue to pursue the COL [federal combined operating license] outside of the nuclear cost recovery clause."

In an April filing with the PSC, Duke Energy said it expected to receive the license in October. The company owns the Levy County site and another in Cherokee County, South Carolina, and is pursuing licenses at both locations with no decision towards moving forward with construction.

"The ultimate decision and timing for Levy," Sipe said, "will be based on what is in the best interest of our customers and will be founded on the best information available at the time we make the decision."

Jon Moyle, an attorney representing the Florida Industrial Power Users Group, said obtaining the license was part of the settlement agreement with the PSC. He said utility customers would benefit from the added value of the license if the property ever is sold.

"Having a piece of property that is licensed to be a nuclear power plant — there is more value on that piece of property than on a piece of property that is woods or farm," Moyle said.

Public Counsel J.R. Kelly said the important aspect of the settlement was that Duke Energy cannot charge customers for continuing to seek the federal license. "Right now, [costs] are being borne 100 percent by shareholders," Kelly said.

And he said he expects the chance of it being built is very low. That's because the cost of nuclear is turning out to be so high.

He noted that Florida Power & Light Co. said earlier this year it wanted to take a five-year "pause" from plans for building new nuclear units at Turkey Point while it continues to seek a federal license.

"I cannot see how anybody could prove up a plant to be feasible to construct under today's environment, and the price of natural gas is so, so low," he said. "I don't think you could pass a feasibility analysis."

And nuclear energy opponent Mary Olson of the Nuclear Information and Resource Service also said she doesn't think the plant construction can be justified.

Her group had opposed the license before the NRC but lost its challenges. She said her group still could challenge the license before the Atomic Safety and Licensing Board once it is issued.

If Duke gets the license, she said, the utility could pursue construction of the plant any time over the next 20 years.

"I think [local residents] must remain vigilant," she said. "I think the COL will be like a fast pass at Disney for 20 years."

