Nuclear plans still on, Progress Energy CEO says

LEVY COUNTY, FLORIDA - 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.

"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.

The utility's North Carolina parent company announced first quarter earnings that suffered from Florida's downturn. Slow customer growth led to a 4.2 percent drop in revenue from residential, commercial, and industrial customers. Customer growth likewise slowed more than expected, as the number of vacant properties increased. The Florida utility still eked out a $6-million increase to $66-million in net revenue by offsetting the slower retail market with an increase in wholesale power sales.

Progress Energy has averaged 2.2 percent customer growth over the last decade. That number dropped to 1.9 percent last year. The utility plans to build two 1,100 megawatt nuclear reactors in Levy County, and also plans to build a 1,200 megawatt natural gas plant on the banks of the Suwannee River.

The utility hasn't built new baseload generation since 1984, Lyash said. He expected that the current downturn won't last, and that Florida will continue to grow - and so will its need for more power.

"Regardless what you think of the slope of the growth curve, there's still a need for new baseload generation," Lyash said.

Related News

Tokyo Electric Power Co.’s Kashiwazaki-Kariwa nuclear complex

Energy authority clears TEPCO to restart Niigata nuclear plant

TOKYO - Tokyo Electric Power Co. cleared a major regulatory hurdle toward restarting a nuclear power plant in Niigata Prefecture, but the utility’s bid to resume its operations still hangs in the balance of a series of political approvals.

The government’s nuclear watchdog concluded Sept. 23 that the utility is fit to operate the plant, based on new legally binding safety rules TEPCO drafted and pledged to follow. If TEPCO is found to be in breach of those regulations, it could be ordered to halt the plant’s operations.

The Nuclear Regulation Authority’s green light now shifts the focus over to whether local…

READ MORE

Peterborough Distribution sold to Hydro One for $105 million.

READ MORE

windstorm-causes-significant-power-outages

Windstorm Causes Significant Power Outages

READ MORE

texas utility worker

Texas utility companies waiving fees; city has yet to act

READ MORE

coal plant

18% of electricity generated in Canada in 2019 came from fossil fuels

READ MORE