by Joe Wilhelm Jr.
Staff Writer
The JEA has reserved its place in line for a share of the energy produced at a proposed nuclear power plant in South Carolina.
Duke Energy is in the permitting process in its effort to construct the proposed 2,234-megawatt Lee Nuclear Station in Cherokee County, S.C.
Duke Energy signed an agreement with JEA Tuesday giving the local utility an option to acquire up to 20 percent (about 440 megawatts) of the power plant.
The $7.5 million investment gives JEA time to decide if it wants to proceed with the purchase of the 20 percent. If it proceeds, the option amount will be applied to the purchase.
“The option agreement secures our opportunity to participate in a project which matches our longer term need for additional generation capacity, maintains flexibility with our investment decisions and provides further diversification to our current generation portfolio,” said Paul McElroy, JEA chief financial officer.
“Additionally, with Duke we got the type of partner we sought, one with the significant financial, technical and operating resources necessary to be successful in a project of this magnitude.”
Duke Energy anticipates the receipt of its construction and operating licenses by 2013 and then plans to have the first of two AP1000 reactors online by 2020 or 2021.
“It really provides an opportunity for both Duke Energy and JEA. For us, it allows us to share benefits with our customers by helping spread the project cost,” said Rita Sipe, spokesperson for Duke Energy.
“As we look forward, it helps us both provide safe dependable energy into the future,” she said.
Duke Energy estimated the cost of the plant at $11 billion.
The option agreement can be exercised following receipt of the Nuclear Regulatory Commission license for a nuclear plant, negotiation and execution of Duke Energy’s engineering, procurement and construction contract, and negotiation of an ownership, operating and maintenance agreement with JEA, according to Gerri Boyce, media relations coordinator for JEA.
The partnership was pursued at the direction of the JEA board of directors who attended a nuclear energy workshop during the summer.
The board decided it wanted to reduce JEA’s use of fossil fuels for energy generation and target up to 30 percent of JEA energy requirements to be met with nuclear energy by 2030.
JEA already has a power purchase agreement in place with the Municipal Electric Authority of Georgia that would provide about 10 percent of its electricity through nuclear energy by 2017.
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