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Progress picks Levy for new nuclear plant

If approved, the nuclear plant could begin operations by 2016.

By STEVE HUETTEL and CATHERINE E. SHOICHET
Published December 13, 2006

Progress Energy Florida chose a pine timber farm north of the Tampa Bay area in Levy County as the site for a new nuclear power plant that could be generating electricity within a decade.

The utility has a contract to buy 3,000 acres in Levy County, 8 miles north of its Crystal River Energy Complex in Citrus County, which includes a nuclear plant and four coal-burning generators.

The site selection announced Tuesday doesn't necessarily mean Progress will build the plant.

But the company considers nuclear generation a cheaper and cleaner alternative to fossil fuel-burning plants, and nuclear power is a key part of its plan to meet Florida's growing appetite for electricity.

Licensing and building a plant takes years, and the utility had to pick a site to keep the process on track, said Progress Energy Florida chief executive Jeff Lyash.

"It's important to move down this path so we have this option for our customers," he said.

The project would jolt the economy of rural Levy County. A single-reactor plant would cost at least $2.5-billion and a dual-reactor plant more that $5-billion, according to Progress Energy. The entire 2006 property tax roll for Levy County was $2.2-billion.

Some 2,000 workers would be on the job during peak construction. The plant would employ more than 500 full-time employees at average annual salaries between $80,000 and $90,000, Progress said.

"I'm really excited," said Levy County Commission Chairwoman Nancy Bell. "I'm an old '60s person. So, my first idea about nuclear power was to pick up a sign and march. I've got a lot of studying to do."

Driving the plan are company estimates that electricity demand will increase more than 25 percent over the next 10 years in its 35-county service area in west and Central Florida. The state's second-largest utility, with more than 1.6-million customers, is adding more than 30,000 homes and businesses a year.

Recent developments, including incentives to utilities pushed by the White House, have enhanced the appeal of nuclear power. Unstable oil and natural gas supplies have led to sharp price increases. Greenhouse gas emissions from coal plants are raising concerns about global warming.

That has helped remove some of the public stigma from nuclear power left by the 1979 partial meltdown of the Three Mile Island plant and the catastrophic accident at Chernobyl in 1986.

After a long hiatus, power companies are planning new nuclear plants again. In the next few years the Nuclear Regulatory Commission expects to receive 19 utility applications for construction of 30 new reactors, said NRC spokesman Scott Burnell.

Polling nationally and in Florida show the public supports nuclear power "as part of a balanced solution to our energy needs," said Lyash during a conference call with reporters Tuesday.

Critics, such as Holly Binns of Environment Florida, say the federal government needs to find a way to store nuclear waste long-term before permitting new plants.

And Florida consumers will balk, she says, if Progress Energy increases their bills before a nuclear plant is built to cover licensing, interest and other costs, as permitted in legislation signed by Gov. Jeb Bush this year.

The utility says the measure spreads out costs, and customers would end up paying far less over the life of the plant.

Progress looked at dozens of possible locations. Potential sites had to be geologically sound and close to massive amounts of water needed to cool the reactor core and generate steam.

Officials also looked for a supportive local government, not just to smooth the way for approving the project but to cooperate in emergency management planning. Citrus County officials lobbied hard for building the new plant at the company's Crystal River facility.

Progress decided instead on a site about 8 miles north of Crystal River that's 40 to 45 feet above sea level and farther inland from the Gulf of Mexico.

That would protect one of the facilities and its transmission lines if the other was hit by a hurricane or tornado, Lyash said.

The new plant would draw between 20-million and 25-million gallons of saltwater daily from the Cross Florida Barge Canal, about 2 miles to the south.

Progress has a contract to buy the land from Jacksonville-based Rayonier, a timber company that controls about 2.2-million acres in the United States. Progress Energy wouldn't disclose a price for the property, valued at $4.6-million by the Levy County Property Appraiser's Office.

Not all Levy County officials were sold on the project. Commissioner Tony Parker said officials should wait to find out more before endorsing the proposal.

"I think it's possible it could be a benefit to the county," he said. "But I think we need to do our homework before we make that decision for sure."

Just a few miles south in Citrus County, officials said they were saddened by Progress Energy's pick.

Citrus County Commissioner Gary Bartell said local officials had tried to convince the company to build in Citrus for more than a year. "It just seemed like the energy complex in Crystal River would be a natural fit for a new plant," he said.

Helen Spivey, an environmental activist and former Crystal River City Council member, said she had concerns about the possibility of building a new nuclear plant.

For one, parts of the Cross Florida Barge Canal are a prime birthing area for manatees, said Spivey, statewide manatee issues chairwoman for the Sierra Club.

The project faces long regulatory reviews from local, state and government agencies.

Progress expects to apply in 2008 for a combined operating and construction license with the Nuclear Regulatory Commission, which estimates the review process will take about 30 months.

The utility hopes to begin building in 2010 but could delay or cancel the project if financial conditions become unfavorable, Lyash said.

Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384. Catherine Shoichet can be reached at shoichet@sptimes.com or (352) 860-7309.

[Last modified December 13, 2006, 01:37:39]