Progress Energy Signs Contract for Proposed Nuclear Power Plant

Progress Energy Florida said it signed contracts with Westinghouse Electric Co. and Power Group, a unit of Shaw Group Inc. (SGR), to develop two nuclear power units for a proposed nuclear power plant in Levy County, Florida.

The latter two companies will provide equipment, engineering and construction services for Progress Energy's two 1,105-megawatt reactors, which are expected to be completed between 2016 and 2018.

Once the project is operational, Progress Energy plans to shut down two of the oldest coal-fired power units at the Crystal River Energy Complex, which is expected to reduce carbon dioxide emissions by more than 5 million tons per year, allowing the company to The Florida government has met nearly 60% of its responsibilities for its 2025 emissions reduction goals.

Progress Energy estimates the project will cost about $14 billion, with an additional $3 billion invested in transmission equipment and about 200 miles of transmission lines. The company said the majority of those costs will be borne by the company and its shareholders, but starting this month, with approval from the Florida Public Service Commission, electricity customers in the state will also begin paying a portion of the costs. However, Progress Energy claims that the nuclear power plant will ultimately save users approximately $13 billion over its lifetime. The company said that once the two nuclear power plants are operational, Florida residents will save approximately $1 billion per year.

The company said the new power station will generate approximately 3,000 jobs during peak construction. Once operational, the power station will employ at least 800 full-time well-paid employees and generate another 1,200 non-directly related positions.

Progress Energy Florida, a subsidiary of Progress Energy Inc. (PGN), provides electricity and related services to nearly 1.7 million customers in Florida.