Florida PSC approves DEF's updated plan for decommissioning Crystal River Nuclear Plant

On Tuesday, August 18, the Florida Public Service Commission (PSC) approved Duke Energy Florida's (DEF's) plan to decommission its Crystal River Nuclear Plant (CR3) by 2038, 36 years ealier than originally planned (by 2076), in a $540 million contract with Accelerated Decommissioning Partners, LLC (ADP),

The money for the project will come from a trust fund comprised of fees charged to customers during 1982 to 2002,

“Duke’s transaction requires no additional funds from its customers, and mitigates any risk from the plant’s otherwise long-term dormancy,” said PSC Chairman Gary Clark. “Customers will also benefit from the plan’s fixed-price and elimination of continued execution and property maintenance risk.”

The nuclear plant began operating in 1977 and was shut down in 2009 when the containment building was damaged during work to replace a steam generator. In 2011 when the plant was preparing to come back online, additional cracks, known in the nuclear industry as delamination, were discovered in the containment building.

In May 2019, DEF announced its plan to decommission CR3 ahead of schedule and to contract with ADP, a joint venture between NorthStar Group Services, Inc. and Orano Decommissioning Holdings, LLC, to perform the work. Set to begin this year, both decommissioning and site restoration are expected to be completed by 2038. DEF had previously announced its decision in 2013 to decommission the plant by 2074.

DEF remains the Nuclear Regulatory Commission-licensed owner of the nuclear plant, property and equipment and retains ownership and control of the trust fund that pays for the decommissioning. ADP will become the Nuclear Regulatory Commission-licensed operator responsible for decommissioning the plant in compliance with all state and federal regulations. The PSC ordered DEF to provide quarterly decommissioning reports through the final period of partial license termination, allowing the PSC to monitor decommissioning activities and the status of the decommissioning trust fund.

Other approvals needed and granted for DEF’s transaction with ADP included the April I, 2020 NRC Order approving the Transfer of Licensed Authority, and the January 15, 2020 Internal Revenue Service Private Letter Ruling, which confirmed that use of the trust fund to decommission the nuclear plant is permissible.

DEF serves about 1.8 million customers in Florida.

For additional information, visit floridapsc.com.