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Review of 2008 Ten-Year Site Plans - Public Service Commission

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The addition <strong>of</strong> nuclear capacity will help to provide further diversity to Florida’s generation<br />

mix. Table 10 below summarizes the new nuclear projects which have been granted a determination<br />

<strong>of</strong> need by the <strong>Commission</strong>.<br />

Table 10. Nuclear Capacity Additions<br />

Utility Name Summer Capacity (MW) In-<strong>Service</strong><br />

PEF Crystal River Unit 3 8 37 & 129 12/2009 & 12/2011<br />

FPL St. Lucie 1 & 2 9 1,103 each Fall 2011 & Spring 2012<br />

FPL Turkey Pt. 3 & 4 9 1,104 each Spring 2012 & Fall 2012<br />

PEF Levy Units 1 & 2 10 1,092 each 6/2016 & 6/2017<br />

FPL Turkey Pt. 6 & 7 11 1,100 each 2018 & 2020<br />

Total 4,964<br />

Nuclear power plant construction is capital-intensive and has a long lead time, and<br />

uncertainty remains with regard to future capital costs and fuel prices. The <strong>Commission</strong>, however,<br />

will review the continued feasibility <strong>of</strong> both Levy Units 1 & 2 and Turkey Point 6 & 7 during its<br />

annual nuclear cost recovery proceedings. Such proceedings provide the <strong>Commission</strong> with a forum to<br />

ensure that construction <strong>of</strong> the nuclear units continues to be in the best interest <strong>of</strong> ratepayers.<br />

Natural Gas<br />

Because <strong>of</strong> the long permitting and construction periods involved with nuclear generating<br />

plants, coupled with the cancellation <strong>of</strong> more than 3,500 MW <strong>of</strong> coal-fired generation, additional<br />

natural gas-fired generation has been planned in the interim. The <strong>2008</strong> <strong>Ten</strong>-<strong>Year</strong> <strong>Site</strong> <strong>Plans</strong> include<br />

the net addition <strong>of</strong> approximately 15,500 MW <strong>of</strong> natural gas generation. The 2007 <strong>Ten</strong>-<strong>Year</strong> <strong>Site</strong><br />

<strong>Plans</strong> included roughly 13,100 MW. The increase <strong>of</strong> proposed natural gas generation is attributable to<br />

the cancellation <strong>of</strong> several coal plants.<br />

In <strong>2008</strong>, the <strong>Commission</strong> approved the determination <strong>of</strong> need for two new natural gas-fired<br />

power plants. FMPA was granted a determination <strong>of</strong> need for a 300 MW natural gas-fired combined<br />

cycle generator at the company’s existing Cane Island site which has an in-service date <strong>of</strong> June 2011.<br />

The <strong>Commission</strong> also granted FPL a determination <strong>of</strong> need for West County Energy Center 3<br />

(WCEC 3), a 1,219 MW combined cycle unit with a 2011 in-service date. The addition <strong>of</strong> WCEC 3<br />

8 Order No. PSC-07-0119-FOF-EI, issued February 8, 2007, Docket No. 060642-EI, In re: Petition for determination <strong>of</strong><br />

need for expansion <strong>of</strong> Crystal River 3 nuclear power plant, for exemption from Bid Rule 25-22.082, Florida Administrative<br />

Code, and for cost recovery through fuel clause, by Progress Energy Florida, Inc.<br />

9 Order No. PSC-08-0021-FOF-EI, issued January 7, <strong>2008</strong>, Docket No. 070602-EI, In re: Petition for determination <strong>of</strong> need<br />

for expansion <strong>of</strong> Turkey Point and St. Lucie nuclear power plants, for exemption from Bid Rule 25-22.082, F.A.C., and for<br />

cost recovery through the <strong>Commission</strong>'s Nuclear Power Plant Cost Recovery Rule, Rule 25-6.0423, F.A.C.<br />

10 Order No. PSC-08-0518-FOF-EI, issued August 12, <strong>2008</strong>, Docket No. 080148-EI, In re: Petition for<br />

determination <strong>of</strong> need for Levy Units 1 and 2 nuclear power plants, by Progress Energy Florida, Inc.<br />

11 Order No. PSC-08-0237-FOF-EI, issued April 11, <strong>2008</strong>, Docket No. 070650-EI, In re: Petition to determine need<br />

for Turkey Point Nuclear Units 6 and 7 electrical power plant, by Florida Power & Light Company.<br />

<strong>Review</strong> <strong>of</strong> <strong>2008</strong> <strong>Ten</strong>-<strong>Year</strong> <strong>Site</strong> <strong>Plans</strong> - 26 -

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