Duke sheds Levy nuclear equipment, battles with Westinghouse

Logo-new-Duke-Energy-web

Duke Energy Florida (DEF), which is a unit of Duke Energy (NYSE: DUK), plans to complete the sale this year of long-lead time equipment it had ordered for the shelved Levy nuclear project.

The company on May 1 petitioned the Florida Public Service Commission for the recovery in a Nuclear Cost Recovery Clause (NCRC) proceeding of its exit and wind-down costs for: the new Levy Units 1 and 2, each 1,100 MW in size; and for the Crystal River Unit 3 (CR3) Extended Power Uprate (EPU) Project.

Duke in 2013 decided to retire the damaged and already-shut, 860-MW Crystal River Unit 3, making the EPU project a moot point. DEF said it is entitled to recover $63.2m for the EPU through the Capacity Cost Recovery Clause (CCRC) during the period January-December 2015.

With the execution of a 2013 settlement agreement and approval by the commission in 2013, DEF elected not to complete construction of Levy Nuclear Units 1 and 2. DEF is implementing a wind-down plan for in-progress Levy Long Lead Equipment (LLE) and has “dispositioned” all LLE that was in active fabrication.

“DEF is soliciting internal and external interest in the acquisition of the remaining LLE,” said the application. “To this end, DEF is conducting a bid event for the remaining Levy LLE. DEF anticipates making final disposition decisions for the remaining Levy LLE by the end of 2014.”

Duke still in dispute with Westinghouse over contract termination

DEF also terminated the Engineering, Procurement, and Construction (EPC) agreement with a consortium Westinghouse Electric Co. LLC (WEC) and Stone & Webster Inc. (S&W) in January 2014, under the terms of the EPC agreement. DEF continues to work with WEC in an attempt to close-out the contract, but to date negotiations are stalled, and both DEF and WEC have initiated litigation against the other for claims under the EPC agreement, Duke noted. DEF has, however, successfully negotiated a close-out of work with the other consortium member - S&W.

DEF plans to continue its Combined Operating License Application (COLA) work in order to obtain the Levy Combined Operating License (COL) from the Nuclear Regulatory Commission (NRC), as long as it is reasonable to do so, and DEF currently anticipates COL receipt in August 2015 based on the current NRC schedule.

DEF will continue to incur COL costs for Levy in 2014 and 2015, but under the 2013 settlement agreement, DEF will not seek to recover these costs from customers through the NCRC.

Mike Delowery, the acting Vice President of Duke Energy's Project Management and Construction department, said about internal transfer of equipment: “A Duke Energy affiliate initially indicated that it may have interest in the acquisition of the EPU low pressure turbine rotors for one of its stations. This asset acquisition was evaluated and the Duke Energy affiliate concluded in 2014 that the equipment was not appropriate for the station. Additionally, in 2014 some minor EPU-related materials will be transferred internally pursuant to DEF's policies. Other EPU equipment is currently under evaluation by Duke Energy affiliates.”

Delowery added that DEF currently plans to commence additional bid events for appropriate EPU-related equipment through an external bid process through the Power Advocate system in 2014. DEF initiated a bid event at the end of  2013 for the EPU Point of Discharge (POD) Cooling Tower equipment and materials. Bid responses were received in early 2014, and DEF is negotiating and finalizing a sales contract with an unnamed potential buyer. DEF expects to complete this negotiation process in May 2014.

Christopher Fallon, Duke Energy's Vice President of Nuclear Development, said in May 1 testimony about the Levy-related talks with Westinghouse (WEC): “At present, WEC has granted DEF a revocable license to use WEC's AP1000 proprietary data for the [Levy] COLA and DEF is working with WEC on an agreement for WEC's continued COLA support work, which DEF needs to continue its work on the Levy COLA. WEC, however, may terminate at any time DEF's right to use WEC's proprietary AP1000 information for the Levy COLA. If WEC revokes DEF's license to use the AP1000 data and WEC and DEF are unable to reach an agreement for WEC's continued work to support the Levy COLA, DEF will be unable to obtain the Levy COL.”

This article was republished with permission from GenerationHub.

2014 Articles

Harvard Law School professor pays Clean Power Plan is unconstitutional

12/31/2014

Laurence H. Tribe, professor of constitutional law at Harvard University and former mentor to Barack Obama, said in an article last week that the EPA’s Clean Power Plan is unconstitutional.

3 SKorea workers die at nuke plant construction site

12/30/2014

SEOUL, South Korea (AP) — Three South Korean workers died Friday after apparently inhaling toxic gas at a construction site for a nuclear plant being built by South Korea's monopoly nuclear power company, which has come un...

UMaine in business of certifying turbine blades

12/30/2014

ORONO, Maine (AP) — The University of Maine has tested its largest wind turbine blade to date. UMaine's Advanced Structures and Composites Center completed static strength testing this month of a 184-foot-long wind turbine...

Mergers, EPA carbon plan generated much attention during 2014

12/29/2014

Mergers, the Environmental Protection Agency (EPA) Clean Power Plan, cheap natural gas and the polar vortex were among the most noteworthy generation stories of 2014.

Developer opens Ohio review for 800-MW, gas-fired project

12/29/2014

Clean Energy Future-Lordstown LLC plans an 800-MW, gas-fired power project, and on Dec. 24 applied with the Ohio Power Siting Board for certain routine waivers it needs before filing a full siting application for this proj...

New England utility exec named to Vermont PSB

12/29/2014

A woman who worked for Vermont's Department of Public Service for 17 years is going to become the next member of the utility-regulating Public Service Board. The appointment of Sarah Hofmann was announced Monday by Gov. Pe...

Brown picks aide to lead troubled California utility board

12/29/2014

Gov. Jerry Brown named a former adviser on Tuesday to be the next head of California's troubled utilities commission, replacing a regulatory chief accused of back-channel dealings with utilities. Michael Picker, a former a...

Washington state carbon emissions dropped in 2011

12/29/2014

Greenhouse gas emissions in Washington state dropped by about 4.6 percent between 2010 and 2011, led by reductions in emissions from the electricity sector, according to the latest figures released by the state. The latest...

Group wants state regulators recused from PNM case

12/29/2014

State regulators in less than two weeks are to begin deliberating a proposal that calls for shutting down part of an aging coal-fired power plant in northwestern New Mexico that serves more than 2 million customers in the ...

Vermont Yankee plant prepares to shut down

12/29/2014

The Vermont Yankee nuclear plant is getting ready to shut down. Its owner, Entergy Corp., says it is closing the plant for economic reasons. The plant in Vernon is expected to disconnect from the regional power grid Monday.

PSEG Solar to acquire Maryland solar project from juwi

12/23/2014

PSEG Solar Source will acquire a 12.9-MW solar energy facility near Waldorf, Maryland from juwi solar (JSI). The PSEG Waldorf Solar Energy Center will increase the capacity of PSEG Solar Source's portfolio to 123-MW.

PG&E discloses more emails with state regulators

12/23/2014

California's largest power utility released a dozen more emails Monday that it said showed improper back-channel discussions between the utility and top state regulators.

Indianapolis airport solar farm expansion completed

12/23/2014

Contractors have finished bringing online dozens of acres of solar panels at Indianapolis International Airport, solidifying its status as the home of the nation's largest airport-based solar farm.

French power company to pay $772M in bribery case

12/23/2014

A French power and transportation company has agreed to pay $772 million to resolve allegations that it bribed high-ranking foreign government officials for lucrative projects, the Justice Department said Monday.

Nebraska nuclear plant back online after short outage

12/23/2014

The Fort Calhoun nuclear power plant is back online less than a week after its main generator unexpectedly shut down as a precaution.

Ameren Missouri plans $135M in energy efficiency

12/23/2014

Missouri's largest electric company said Monday that it plans to invest $135 million in energy efficiency programs for customers over a three-year period.

TEPCO completes nuclear fuel assemblies removal from Fukushima 4

12/22/2014

Tokyo Electric Power Co. (TEPCO) said it has safely removed the fuel assemblies from the most damaged nuclear reactor at the Fukushima Daiichi nuclear power plant.

B&W Vølund to build waste-to-energy power plant in Scotland

12/22/2014

In a consortium with Interserve, Babcock & Wilcox Co.’s (B&W, NYSE:BWC) subsidiary, Babcock & Wilcox Vølund A/S (B&W Vølund), will engineer, procure and construct (EPC) a waste-to-energy (WTE) power plant f...

SKorea holds N-plant drills against cyber threats

12/22/2014

South Korea's monopoly nuclear power company said it began drills Monday against possible cyberattacks after online threats of attack against its plants.

PSC approves solar power project

12/22/2014

The Public Service Commission has approved solar power project planned by Kentucky Utilities and Louisville Gas and Electric in Mercer County.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...