Progress Energy Florida Issues Statement Regarding Filing of Crystal River Nuclear Plant Engineering Report

  Progress Energy Florida Issues Statement Regarding Filing of Crystal River
                       Nuclear Plant Engineering Report

PR Newswire

ST. PETERSBURG, Fla., Oct. 1, 2012

ST. PETERSBURG, Fla., Oct. 1, 2012 /PRNewswire/ -- Below is a statement issued
today by Alex Glenn, incoming president of Progress Energy Florida, a
subsidiary of Duke Energy.

Today, we provided to the Florida Public Service Commission the report from
Zapata Inc., regarding its independent review of the potential repair plan for
the Crystal River Nuclear Plant (CR3).

As part of the ongoing evaluation of the pending decision to repair or retire
the unit, and given the complexity of the issue, Duke Energy commissioned the
independent technical review in March to further analyze the potential scope,
risks, costs and schedule of the prospective repair. Independent evaluations
such as this are common in the nuclear industry when addressing complex
matters, particularly a first-of-a-kind engineering, construction and
licensing project like the one contemplated at CR3.

The review found that the current repair plan appears to be technically
feasible, but significant risks and technical issues still need to be
resolved, including the ultimate scope of any repair work. The Zapata report
estimated the repair cost at approximately $1.49 billion. Progress Energy's
prior assessment indicated expected repair cost of $900 million to $1.3
billion, with the costs trending up. The report confirmed, as Progress
Energy's assessment had indicated, that an increase in the scope of repairs
will increase the cost and extend the schedule.

Zapata also prepared approximate estimates for more extensive work based on
potential unplanned scenarios, up to and including its worst-case scenario.
This scenario assumed that the company would perform Progress Energy's more
limited scope of work, and at the conclusion of that work, additional damage
would occur in the dome and in the lower elevations, which would force the
replacement of each. Under the worst-case scenario, Zapata estimated that the
cost could be $3.43 billion with a 96-month schedule.

We have not made a final decision on whether to repair or retire CR3. The
decision and schedule will be driven by the final analysis, not vice-versa.
The evolving analysis also will provide increasing detail on cost and schedule
expectations.

As part of our ongoing commitment to safety and doing what is best for our
customers, joint owners and investors, we will carefully analyze and settle
each finding as we continue to evaluate the technical and licensing
implications, estimated costs and the time required to make the repair.

We will proceed with a repair option only if there is a high degree of
confidence that the repair can be successfully completed and licensed within
the final estimated costs and schedule, and is in the best interests of our
customers, joint owners and investors.

Progress Energy Florida

Progress Energy Florida, a subsidiary of Duke Energy (NYSE: DUK), provides
electricity and related services to more than 1.6 million customers in
Florida. The company is headquartered in St. Petersburg, Fla., and serves a
territory encompassing more than 20,000 square miles including the cities of
St. Petersburg and Clearwater, as well as the Central Florida area surrounding
Orlando. Progress Energy Florida is pursuing a balanced approach to meeting
the future energy needs of the region. That balance includes increased
energy-efficiency programs, investments in renewable energy technologies and a
state-of-the-art electricity system. More information is available at
www.progress-energy.com.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded
on the New York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com.

Media Contacts: Mike Hughes, Suzanne Grant – 800-559-3853

SOURCE Duke Energy

Website: http://www.duke-energy.com
 
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