Debt Renaissance

Deck: 

Eye-popping nuclear costs portend rising leverage.

Fortnightly Magazine - July 2008
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

When Progress Energy announced in March 2008 that the expected cost had tripled for its proposed two-unit, 2,200-MW nuclear plant in Levy County, Fla., the company called on the state’s highest-ranking proponent of nuclear energy to blunt negative reaction to the news.

EEI Annual Meeting 2024 - June 18-20

“This investment in Florida’s future is important to make,” Gov. Charlie Crist told reporters. “It will ultimately result in lower costs for customers because of the rising costs of oil and natural gas.”

Despite this brave face, however, price tags for new nuclear plants have reached intimidating levels. The Levy County plants, originally expected to cost around $5 billion, are now priced at between $15 billion and $17 billion—with future inflation still possible.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.