Levy Nuclear Project Jeff Lyash President & CEO Progress Energy Florida Progress Energy Florida
A Balanced Solution for the Future A Balanced Solution for the Future 2
Pl Planning to Meet Florida’s Energy Needs i t M t Fl id ’ E N d 3
V l til Volatile Fuel Prices F l P i 4
Fuel Diversity to Serve Florida’s Energy Needs y gy Energy Generation by Fuel Type (percent of total) Source: FPSC Review of 2008 10-Year Site Plans 5
Policy Decisions Promote Timely Results Inception to Construction 6
2006 Florida Nuclear Investment Act 2006 Fl id N l I t t A t � Pre-construction and licensing � Capacity cost recovery clause (CCRC) � Costs are recovered dollar for dollar � During construction g � AFUDC is recovered through CCRC � 8.848% AFUDC rate is locked until commercial operation � Annual prudence reviews p � Completion � Base rate adjustment at in-service for capital costs � ROE and capital structure based on last approved levels � ROE and capital structure based on last approved levels (currently 11.75% ROE on 57.83% common equity) � Project cancellation cost recovery � Full recovery of costs incurred if project is cancelled Full recovery of costs incurred if project is cancelled 7
Levy Nuclear Project L N l P j t Location Technology # of units Capacity (MW) In Service Levy County, Westinghouse 2 ~2,200 total 2016 - 2018 Florida AP1000 ● 8 miles NE of our Crystal River ● 8 miles NE of our Crystal River Energy Complex ● Signed engineering, procurement & construction (EPC) agreement with Westinghouse and Shaw ● Negotiating joint ownership with multiple parties (1) with multiple parties (1) ● Site prep and pre-construction begin ~2010/11; safety-related construction begins 2012/13 g (1) Confidentiality obligations preclude us from discussing this further until the negotiations are completed. 8
EPC A EPC Agreement Highlights t Hi hli ht � Signed December 2008 with Westinghouse Electric Company and St Stone & Webster, a subsidiary of The Shaw Group & W b t b idi f Th Sh G � Two 1,105-net MW, AP1000 nuclear reactors � EPC contract price = $7.65B � EPC contract price = $7 65B � > 50% of which is fixed price or firm price with agreed-upon escalation factors � Includes various performance incentives, penalties, warranties, � Includes various performance incentives, penalties, warranties, liquidated damage provisions and parent guaranties � Total estimated cost for the two generating units = ~$14B � Includes land price plant components construction labor regulatory � Includes land price, plant components, construction, labor, regulatory fees and reactor fuel for the two units, and � Forecasted inflation, owner costs, financing costs and contingencies � Additional $3B estimated for associated transmission facilities � Additional $3B estimated for associated transmission facilities 9
Levy Nuclear Project Activities L N l P j t A ti iti � EPC Agreement executed on 12/31/08 � EPC Agreement executed on 12/31/08 � SCA Hearing (state siting) began 2/23/08 � NRC COLA schedule pending NRC COLA schedule pending � Nuclear cost recovery proceeding under way � Post EPC organization being formed � Positioning for early construction � Barge, temporary haul path � Transmission project effort progressing 10
R Regulatory Timeline for Levy Project l t Ti li f L P j t Mar. May y June July y Aug. g Sept. p Oct. 2008 2008 April p 2010 2010 2012/13 2012/13 Need Case Need Case Filed Filed Hearing Hearing Vote Order Vote Order Cost Recovery Filed Hearing Order Site Certification Filed (18 month review) Issued Combined License Filed (3 - 4 year review) Issued 11
K Keys to Success t S � Policy and regulatory stability ♦ Recognition of nuclear as a clean energy source ♦ Recognition of nuclear power’s role in energy security ♦ Resource commitment to support timely licensing/permitting � Financial continuity ♦ Financial tools to maintain utility strength during construction ♦ Options to mitigate early customer price impacts ♦ Options to mitigate early customer price impacts � Workforce development ♦ To build the plant p ♦ To operate the plant � Supply chain development pp y p 12
Recommend
More recommend
