Duke will purchase Southern's share of nuclear power station planned here

Duke Energy will be the sole owner of the proposed William States Lee III nuclear power station after announcing Tuesday it intends to purchase Southern Company's 500- megawatt interest in the power plant planned for the McKown's Mountain area.

Duke officials said the purchase would make the plant's total output available to electric customers in the Carolinas.

Demand in Duke Energy Carolinas' service area is projected to grow by more than 6,000 megawatts by 2021, according to Duke Energy. The two-unit Lee Nuclear plant could come into service by 2016 with a capacity of more than 2,200 megawatts.

Under a joint ownership agreement signed with Southern Company last March, the Atlanta-based company would have been entitled to 500 megawatts of the plant's output.

Southern Company said it is withdrawing from the Lee Nuclear project to explore and focus on energy options within its service territory, including two proposed new nuclear units at Plant Vogtle near Waynesboro, Ga.

Tuesday's news ends Southern Company's interesting relationship with Duke Energy in the project.

In 2006, a judge ruled that Chen Development, a limited liability corporation, executed the sale of the site to Southern Company, not Duke Energy. Southern Company then sold the property to Duke, with Southern Company becoming a minority partner in the power plant.

Duke Energy plans to file with the U. S. Nuclear Regulatory Commission later this year for a combined construction and operating license (COL) for the two Lee Nuclear units, following which the company will file with the South Carolina Public Service Commission for a Certificate of Public Convenience and Necessity for the plant.