Progress Energy taps Westinghouse, Shaw for nuclear plant work

Under terms of the contract, Westinghouse Electric Co. LLC and Stone & Webster Inc., a subsidiary of The Shaw Group Inc., will provide design, engineering, procurement, and construction services for the two nuclear electric-generating units, Progress Energy said in a filing with the Securities and Exchange Commission.

The contract price for the two new nuclear units is about $7.65 billion, the SEC filing said. The total price estimate that Progress Energy filed with the Florida Public Service Commission, including costs such as inflation, site preparation, financing and associated transmission facilities, is about $14 billion.

If regulatory approvals stay on schedule, current plans would be for the units to be substantially complete in the 2016 to 2018 time frame, the filing said.

Progress Energy Florida said in a news release that most of the project costs will be invested by the company and its shareholders and will not be recovered from customers through rates until the plant goes into service. However, starting this month, customers will begin paying for a portion of the costs of the project as approved by the PSC, the release said.

Progress Energy Florida also said in the SEC filing that it expects to have substantial joint ownership in the project and will make an announcement on additional owners when those negotiations are completed.