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Duke Energy Submits Application for Cherokee Nuclear Power Plant

December 14, 2007
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By Lynne P. Shackleford, Herald-Journal, Spartanburg, S.C.

Dec. 14–Duke Energy submitted an 8,000-page application to the U.S. Nuclear Regulatory Commission for review Thursday, further reinforcing the company’s commitment to a plan to build the Lee Nuclear Station in rural Cherokee County.

The company’s combined construction and operating license reaffirms the energy giant’s plan to put two Westinghouse AP 1000 generating units near the McKown’s Mountain community. If completed, the investment could top $8 billion with about 1,000 high-paying jobs, according to company documents.

The plant also is expected to pay $8.5 million annually in taxes, which would be divided between the state and county governments.

Duke Energy’s application includes pertinent safety information, meteorological data and information on the site’s geography, seismology, hydrology and biology. Information on the site’s footprint, the environmental impact of the station, and details on the two reactors also are included, NRC spokesman Scott Burnell said.

The regulatory commission expects to reach a decision on Duke Energy’s application by mid-2011, Burnell said, positioning the company to bring one reactor online by mid-2016 and the other by January 2017. Burnell said the commission already has certified the Westinghouse units’ design, which would be used for the first time at the proposed Lee Nuclear Station.

Duke Energy is the fourth company to submit a COL application under the revised federal licensing process, which combines two previous licenses, one for construction and the other for station operations. The Nuclear Regulatory Commission issues licenses and regulates commercial nuclear power plant operations in the United States.

Before 2007, when all four applications were submitted, the commission had not received any applications since 1979. The Watts Barr Nuclear Station in Tennessee, which went online in 1996, was the last plant in the nation to begin operations.

Duke Energy recently submitted concurrent applications to the North and South Carolina utility commissions requesting support for its plan to spend $230 million by the end of 2009 on pre-construction phases of the project. The COL application process will cost “millions,” said Rita Sipe, a Duke Energy spokeswoman. At least part of that money could eventually be recovered through ratepayers.

“I want to be clear that we have not made the decision to build this nuclear station; we are carefully considering our options,” Sipe said. “Filing the application is the next step in keeping the new nuclear generation option open.”

Duke Energy had plans in the early 1980s to construct a nuclear station on the same Cherokee County site, but abandoned those plans after spending $600 million in pre-construction and design phases, citing a spiraling economy and low energy demands. Sipe wouldn’t rule out the possibility of Duke Energy halting the Lee Nuclear Station project, but said its application represents the company’s commitment to expanding nuclear generation options to meet growing energy needs.

Duke Energy constantly reviews and analyzes energy demands in its service area, Sipe said. In addition to the proposed nuclear station in Cherokee County, the company has plans to expand a coal unit at a North Carolina Steam Station, build new units at two additional steam stations and evaluate options for renewable generation and other resources, Sipe said.

About 50,000 new Duke Energy customers are added annually to its North and South Carolina service territory that now serves 2.3 million customers. To meet that demand, the company estimates that resource needs are expected to increase by 10,700 megawatts in the Duke Energy Carolinas service area by 2027.

The two proposed nuclear generating units would supply energy to about 2 million homes, Sipe said. The Lee Nuclear Station is expected to be about the same size as two other South Carolina nuclear stations owned by Duke Energy: Catawba and McGuire.

Duke Energy’s plan for the new nuclear station has been met with little organized opposition from environmental groups. The Blue Ridge Environmental Defense League announced plans in April 2006 for a two-state campaign to stop Duke Energy’s effort to move forward. So far, no major protests or organizational meetings for those opposing the station have been held in Cherokee County.

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Copyright (c) 2007, Herald-Journal, Spartanburg, S.C.

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