Duke Nuke Plant's Latest Cost: $11 Billion
November 5, 2008
By Bruce Henderson ([email protected])
Duke Energy now says its new nuclear power plant near Gaffney, S.C., will cost $11 billion, about double its estimates of two years ago.
Duke included the cost estimate in a filing Monday with the S.C. Public Service Commission, which regulates utilities.
Opponents of the Lee plant, whose site is 50 miles southwest of Charlotte, say high costs to ratepayers make nuclear plants a bad deal. Duke previously invested $600 million on a nuclear plant at the same site before stopping work in 1982, and was allowed to raise rates to recover $224.5 million of that cost.
Duke, in 2006, had initially estimated the plant's costs at $4 billion to $6 billion. In December, the company said industry estimates suggested Lee's construction would cost $8 billion to $8.9 billion.
Spokeswoman Rita Sipe said the latest estimate was based on a more detailed review of costs, including expenses for building infrastructure on a "greenfield" site and increases in equipment and commodity prices.
The $11 billion estimate is in 2008 dollars and does not include financing or escalating costs.
Duke expects the Nuclear Regulatory Commission to issue a construction and operating license in 2012, with the plant going online in 2018.