Tallahassee, Florida – Progress Energy is moving forward with its plan to repair the Crystal River nuclear power plant, which has been shut down because of problems since 2009.
On Thursday, Progress Energy executives gave state utility regulators an update on the repair plans.
The nuclear power plant has experienced two gaps in its concrete containment structure. Initial estimates put the repair cost at up to $1.3 billion.
Insurance is expected to cover part of that price tag, but spokesman Tim Leljedal says it's still too early to predict how much customers might pay.
"The nuclear insurance allows for an individual-incident coverage of up to $2.25 billion as well as $490 million in replacement power costs. So as we work through this process with the insurer and with other parties involved, we should have a better feel as it goes on as to what, if any, amount we may look to recover from customers."
Progress believes the best course of action is to fix the plant because it's the company's cheapest way to generate power.
Leljedal says when Crystal River is operating, it saves customers more than $300 million a year in fuel costs and it does not produce any emissions.
"There are significant financial and environmental benefits to bringing the plant online. We want to make sure that we address this issue in the best way possible for our customers and for our company."
Any repairs, and the method of paying for them, must be approved by state and federal regulators.
The Florida Public Service Commission has already approved an extra charge for Progress customers to pay for the natural gas and coal needed to generate power while the nuclear plant is down. That extra charge is subject to refund.
Progress Energy hopes to have Crystal River operating again in 2014.
The company is asking the federal Nuclear Regulatory Commission for an extended operating license that would allow the plant to run an extra 20 years. Crystal River's current 40-year license expires in 2016, so the extension would keep the plant operating until 2036.
Progress Energy has about 1.6 million customers in Florida.
