Duke Energy plans to decommission retired Florida nuclear plant 50 years earlier than originally scheduled

Duke Energy recently announced a plan to decommission its retired Crystal River Nuclear Plant in Florida by 2027, approximately 50 years sooner than originally scheduled.

The changed would have no impact on customer bills, the company said.

The new plan is subject to approval by the U.S. Nuclear Regulatory Commission (NRC) and the Florida Public Service Commission (PSC). If approved, decommissioning work would begin in 2020.

Duke Energy noted that it is pursuing accelerated decommissioning for two reasons.

One reason is that the trust fund that pays for the decommissioning, which had approximately had about $717 million as of March 31, 2019, is currently sufficient to accelerate the plant’s decommissioning without increasing customer bills. Accelerating the decommissioning also provides Duke Energy with the potential opportunity to return the majority of unused trust fund dollars to customers more than three decades sooner than with the current 60-year decommissioning model.

Second, Duke Energy cost-effectively completed the initial phase of decommissioning, placing the plant in an ideal position to attract bidders to complete the work. This progress, as well as increased competition in the industry, has reduced decommissioning costs, making the accelerated model financially feasible.

If the transaction receives regulatory approval, Duke Energy will remain the Nuclear Regulatory Commission-licensed owner of the nuclear plant, property, and equipment and retain ownership and control of the trust fund which pays for the decommissioning.

Accelerated Decommissioning Partners would become the Nuclear Regulatory Commission-licensed operator responsible for decommissioning the plant. Accelerated Decommissioning Partners will also own the dry cask storage system assets, including the used nuclear fuel assemblies and operate and maintain the on-site dry cask storage facility.