Progress Energy Reaches Tentative Settlement on Crystal River Repairs
Progress Energy will be encouraged to repair the multi-million dollar damage at its Crystal River nuclear unit 3 as soon as possible, and terminate its engineering, procurement and construction contract with Shaw and Westinghouse for a new nuclear plant under a global settlement reached by the Florida’s office of Public Counsel, Progress Energy and other parties on Jan. 20.
Under the settlement, which must still be approved by the Florida Public Service Commission, Progress would seek recovery of the costs to repair the damage from its insurer, the Nuclear Electric Insurance Ltd. (NEIL). If the costs exceed the amount paid by NEIL, Progress would have to go to the PSC in a case to get the remaining costs from ratepayers. If repairs exceed the approved repair estimate, Progress will split the cost of those repairs, up to $400 million, 50/50 with ratepayers.