Progress Energy Awarded Nearly $83 Million in Spent Fuel Ruling
May 21 2008 - 3:05PM
PR Newswire (US)
RALEIGH, N.C., May 21 /PRNewswire-FirstCall/ -- The U.S. Court of
Federal Claims issued a ruling on Monday, awarding Progress Energy
$82.8 million for costs incurred as a result of the government's
failure to accept spent nuclear fuel from the utility. The sum
covers the costs incurred by Progress Energy to activate fuel
storage facilities at plants in the Carolinas and costs to transfer
used nuclear fuel between plants for storage. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c ) The
lawsuit stemmed from the U.S. Department of Energy's failure to
open a federal repository for used nuclear fuel by Jan. 31, 1998,
as stipulated under federal law. Since storage facilities were not
opened by the appointed date, Progress Energy had to revise plans
to include onsite storage at its nuclear power plants. Progress
Energy originally filed the complaint against the DOE asserting $91
million in costs incurred between January 31, 1998 and December 31,
2005 - the time period established by the court for the complaint.
Costs incurred after 2005 can be recovered in future claims. The
trial was conducted in November 2007 and April 2008. Approximately
60 similar cases have been litigated between utility companies and
the federal government. Some of the suits have been settled. A
number of cases are still pending. Progress Energy operates five
reactors at four sites in the Carolinas and Florida. Nuclear energy
accounted for about 35 percent of the company's total energy
produced for customers in 2007. The company has the capability to
continue to store used nuclear fuel rods safely on site at each
plant. Meanwhile, the company continues to be a strong advocate for
a permanent federal storage solution for the nation's nuclear
reactors. "Nuclear energy is going to continue to be a critical
part of our ability to meet the needs of our growing service
areas," said Bill Johnson, Progress Energy's Chairman, President
and CEO. "Nuclear power will be one means of addressing global
climate change while ensuring a reliable energy supply for future
generations, and as a country we must address the issue of used
nuclear fuel with a clear national policy based on scientific and
engineering facts." The Department of Justice can appeal Monday's
decision within the next 60 days. Given the likelihood of an
appeal, no decision has been made regarding the disposition of the
potential court award. Progress Energy, headquartered in Raleigh,
N.C., is a Fortune 250 energy company with more than 21,000
megawatts of generation capacity and $9 billion in annual revenues.
The company will observe its 100th anniversary in 2008. Progress
Energy includes two major utilities that serve 3.1 million
customers in the Carolinas and Florida. The company is the 2006
recipient of the Edison Electric Institute's Edison Award, the
industry's highest honor, in recognition of its operational
excellence. The company also is the first utility to receive the
prestigious J.D. Power and Associates Founder's Award for customer
service. Progress Energy serves two growing areas of the country.
For more information about Progress Energy, visit the company's Web
site at http://www.progress-energy.com/. Caution Regarding
Forward-Looking Statements: This document contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements, by their very nature, involve assumptions, risks and
uncertainties that could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements.
Any forward-looking statement speaks only as of the date such
statement is made, and we undertake no obligation to update any
forward-looking statement or statements to reflect events or
circumstances after the date on which such statement is made.
http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c
http://photoarchive.ap.org/ DATASOURCE: Progress Energy CONTACT:
Corporate Communications 24-Hour Media Line, +1-877-641-6397 Web
site: http://www.progress-energy.com/
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