Questions & Answers
- What are Duke Energy’s plans for new nuclear generation?
- Which new reactor technology will Duke Energy use?
- Where will a proposed new station be located?
- Why was the proposed new station already named?
- When will Duke Energy make a decision regarding plant construction?
- Is the application work for Cherokee County different from Duke Energy’s participation with the NuStart Energy consortium?
- How does the Energy Policy Act of 2005 (H.R. 6) affect new nuclear generation?
- What is being done to resolve the used nuclear fuel storage issue?
- Describe Duke Energy's other initiatives in meeting future energy demands.
Q. What are Duke Energy’s plans for new nuclear generation?
A. Duke Energy prepared a combined construction and operating license (COL) application for a new nuclear station and submitted it to the NRC in December 2007. Preparing the COL took approximately two years. The NRC anticipates it may take up to 42 months to review the application.
At this time, Duke Energy has not decided to build a new nuclear station; Duke Energy’s intent in preparing a COL application is to maintain the option to bring a new nuclear power plant into service during the next decade to meet increasing customer demand.
Q. Which new reactor technology will Duke Energy use?
A. Duke Energy evaluated a number of excellent new reactor technologies, including Areva’s Evolutionary Pressurized Reactor, General Electric’s Economic Simplified Boiling Water Reactor and Westinghouse’s Advanced Passive 1000. Following our thorough evaluation of these technologies, we selected the Westinghouse AP1000 technology (advanced passive pressurized water reactor - PWR).
Westinghouse PWR technology is proven technology, and is currently in use at the Duke Energy-operated McGuire and Catawba nuclear stations.
Westinghouse is partnering with The Shaw Group, Inc., a global engineering, design, construction and operations firm, on engineering work for this project.
Q. Where will a proposed new station be located?
A. In 2005, we evaluated a number of good options across Duke Energy’s service area in the Carolinas. Our comprehensive siting review initially focused on about 14 sites in the service territory, and we selected a site in Cherokee County, S.C., for this project.
Q. Why was the proposed new station already named?
A. In June 2006, Duke Energy announced the proposed Cherokee County project would be named the William States Lee III Nuclear Station (Lee Nuclear Station). Naming the project is part of the license application process.
Q. When will Duke Energy make a decision regarding plant construction?
A. The decision to pursue a COL application was made early in 2005 and confirmed in October 2005. The reactor technology was selected in October 2005 and the site was announced in March 2006. Selecting the reactor technology and location does not mean a generating station will be built. We will continue to evaluate customers’ growing electricity needs and the best way to meet those needs. The decision to build a new nuclear station is a number of years away.
Q. Is the application work for Cherokee County different from Duke Energy’s participation with the NuStart Energy consortium?
A. The COL application for the Cherokee County site is a separate effort Duke Energy has undertaken in parallel with the NuStart Energy work. Duke Energy’s COL efforts do not supplant involvement with NuStart. The NuStart work will demonstrate the COL process, as well as complete first-of-a-kind engineering work on new reactor technology.
Q. How does the Energy Policy Act of 2005 (H.R. 6) affect new nuclear generation?
A. Duke Energy Carolinas began its evaluation of new nuclear stations for future generation before the passage of the Energy Policy Act of 2005. However, we are pleased with the provisions in this bill that support new nuclear generation.
The Energy Policy Act includes “standby support” that will address the financial impact of delays that might occur during construction and at the start of operations for as many as six reactors. It would cover the full cost of delays for the first two reactors (up to $500 million each) and 50 percent of delay costs for the next four reactors (up to $250 million each).
H.R. 6 renews the Price-Anderson Act for 20 years. This act provides the framework for immediate, no-fault insurance coverage for the public in the event of a nuclear reactor incident. The act had expired and renewal assures any new plants built in the next 20 years are covered.
The national energy policy provides loan guarantees for up to 80 percent of the cost of innovative technologies that avoid, reduce or sequester air pollutants or emissions of greenhouse gases. This includes the new advanced-design nuclear plants.
The act also includes production tax credits for new nuclear plants. This provision will provide 1.8 cents per kilowatt-hour for up to 6,000 megawatt-hours of capacity from new nuclear plants for the first eight years of operation, subject to $125 million annual limit.
Q. What is being done to resolve the used nuclear fuel storage issue?
A. Presently, used nuclear fuel is safely and securely stored at each nuclear station in either used fuel pools or dry canister storage. The U.S. Department of Energy (DOE) is conducting a comprehensive scientific and environmental study and evaluation of a deep geologic repository for used nuclear fuel. The site under review is Yucca Mountain, Nevada. In June 2008, the DOE submitted a license application to the NRC for construction authorization for the site.
In 2002, Congress and the president approved the Yucca Mountain site for used nuclear fuel storage. The nuclear industry fully supports the use of Yucca Mountain for storage of used fuel based on sound scientific testing and conclusions, and has confidence this site can be developed for storage. Duke Energy continues to support the government's efforts to fulfill its obligation to accept and manage used nuclear fuel.
Q. Describe Duke Energy's other initiatives in meeting future energy demands.
A. In addition to building new power plants, Duke Energy has a variety of energy efficiency and conservation initiatives, as well as an expanding renewable energy portfolio to ensure we continue serving our customers well into the future.
