Progress Energy Florida's Crystal River 3 nuclear plant will not return to service, the company announced Tuesday. The reactor has languished offline since crews discovered damage to its containment building after a 2009 steam generator replacement, and the cost of repairs became a serious point of contention in the recent merger between Progress and Duke Energy.
A report on the concrete problem last year concluded that repairs were possible, but "brought increased risks that could raise the cost dramatically and extend the schedule," according to a Duke release.The independent Zapata Inc. study placed those costs at between $1.5 billion and $3.4 billion.
“This has been an arduous process of modeling, engineering, analysis and evaluation over many months. The decision was very difficult, but it is the right choice," Duke Energy CEO Jim Rogers said in the release.
About 600 people work full-time at unit 3. Some will stay on as the utility decommissions the reactor, and according to the release, "The company will work with employees to help as many as possible make the transition to positions in other Duke Energy organizations." Jobs at the two coal-fired units at the plant will not be affected.
The utility reached a settlement with Nuclear Electric Insurance Limited for an additional $530 million. That will bring the total received from the insurer to $835 million, which Duke noted is the largest NEIL payout in history. Citing company figures, the Orlando Sentinel placed the cost of repairs to date at $338 million, with another $614 million spent on replacement power. Its decommissioning fund contains about $600 million, which is expected to cover the costs of closing the unit.
Crystal River 3 is a Babcock and Wilcox pressurized water reactor licensed in 1976, according to the Nuclear Regulatory Commission. Its license expires in 2016, and the agency received an application in 2008 to extend its life for a further 20 years. The nuclear unit about 80 miles north of Tampa generated 860 megawatts.