Duke and Progress merger could produce largest regulated nuclear fleet

On Jan. 10, Duke Energy and Progress Energy announced a $13.7 billion plan to merge the two utilities. If approved, the merger could result in the United States’ largest regulated nuclear fleet.

Currently, Duke Energy operates seven reactors at three sites in North and South Carolina. Between the Oconee, Catawba and McGuire stations Duke has a total nuclear capacity of roughly 6.7 GWe. Duke also has plans to build two AP1000 reactors at the William States Lee in South Carolina. The application for this site was submitted in 2007 and Duke anticipates a license from the Nuclear Regulatory Commission in the 2013 timeframe, said company spokesperson Rita Sipa. But Sipa does not expect the merger to change the course of the application process and Duke “will continue to move forward.”

Progress Energy brings roughly 4.3 GWe of nuclear capacity to the merger. Progress operates five reactors at four sites in the Carolinas and Florida. Like Duke, Progress is also in the license application process with the NRC. Progress has proposed two sites to build new reactors. Two AP1000 reactors are planned at its Levy County site in Florida, although it has been delayed pending the receipt of a license.

Even though, they are still pursuing the combined construction and operating license and the company is keeping that option available for the future and that “will not change with merger” said Progress Energy spokesperson Mike Hughes. Progress also submitted a combined construction and operating license in 2008 for two additional reactors at its Shearon Harris plant in North Carolina.

If the merger is completed, the NRC would have to review license transfer applications for the operating reactors. And NRC spokesperson Scott Burnell said that the regulator has a well-established process in place to ensure the proposed license transfers meet regulations. Proposed reactor applications would have to be updated to reflect the new applicant, as well.

But the two companies are not even to that point yet. The completion of the merger could take up to a year. Yet, Hughes said they do not see that process as a “stumbling block anyway” due to both companies’ strong history and experience in nuclear operations.

“Being part of the nations regulated nuclear fleet and part of a much larger company gives us a great foundation from which not only to enhance existing nuclear operations but to also pursue new nuclear,” he said.

With a combined enterprise value of $65 billion, the company that will be known solely as Duke Energy looks to have the capital to move forward with new nuclear in the U.S.

For now, Duke and Progress will continue to operate their respected plants as is.