Florida utility chooses nuclear power site

Progress Energy (NYSE: PGN) has identified a site in southern Levy County in Florida as the preferred location for construction of a nuclear power plant - if the decision is made in future years to move forward.

The site, approximately 3,000 acres, is located about seven miles inland from the Gulf of Mexico and eight miles north of the company's Crystal River Energy Complex in Citrus County, where Progress Energy operates a nuclear plant, as well as four coal-fueled units.

The location was chosen based on land, access to sufficient quantities of water (from the Gulf) and access to electric transmission system, as well as an overall evaluation of environmental considerations. The proximity of the site to the company's existing nuclear plant also would provide opportunities for efficiencies in shared support functions. In the coming months, the potential site will undergo further detailed assessment.

"We expect demand for electricity in our service territory to grow by more than 25 percent in the next decade, and today's announcement is part of our long-term, balanced approach to meeting our customers' future needs," said Jeff Lyash, president and CEO of Progress Energy Florida.

"The site selection is not a decision to build a nuclear plant. That decision won't be made for a year or longer. But it is a critical step in ensuring that nuclear power remains open and viable for future years."

The state's landmark energy plan, adopted this year, recognizes the need for new plants, as well as the critical role that nuclear power already plays in promoting reliable electricity and rate stability for Floridians.

"We agree with state and federal leaders that nuclear power must continue to be part of a balanced approach to meeting the state's growing needs - an approach that maximizes energy independence and environmental responsibility, while bolstering the energy supply that serves us all. The importance of our state's reliable energy supply was again made clear last summer, as an extended heat wave caused significant issues (including blackouts and brownouts) in New York and other parts of the country."

Over the last two decades, more than 600,000 homes and businesses have been added to Progress Energy's system in Florida. And with today's larger homes and significantly more electronics use in homes and businesses, per- capita use of electricity among Floridians also has risen dramatically. While other types of power plants have been added in recent years (particularly natural gas-fueled plants) the significant customer and energy-usage growth have prompted the need for adding baseload generation.

Lyash said two goals in the company's decision making about future facilities are reducing America's reliance on foreign oil supplies and protecting the environment. Nuclear plants do not emit greenhouse gases that have been associated with global climate change.

If approved, clearing and construction would begin as early as 2010, and a new plant could be online around 2016.

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