Energy exec: Lee nuclear project hinges on change in N.C. law

Duke Energy exec: Lee nuclear project hinges on change in N.C. law
Charlotte Business Journal - by John Downey Senior staff writer
Friday, June 5, 2009

Duke Energy Corp. executives raised the ante on N.C. legislators and regulators Wednesday night, saying the company won’t build its $11 billion Lee Nuclear Station unless the state makes major changes in utility law.

The biggest change would be to allow utilities to charge customers for the costs of nuclear plants without a full state review of their rates. That would reverse the current practice in North Carolina. The state now conducts a general rate proceeding before letting a utility charge customers for any power plant.

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Ruff said current N.C. law does allow Duke to recover its financing costs before a nuclear plant is built. But Duke can’t add those expenses into its rates unless regulators give their OK in a general review of the company’s rates.

The N.C. Utilities Commission also must decide whether construction costs of such a project were prudent and reasonable after the plant is built.

That decision is part of a full review of the company’s rates as well. Duke contends such rate-setting procedures are cumbersome, expensive and give no certainty that its full costs can be recovered.

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