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Nuclear plant project delayed

2009-09-04 / Front Page

By LARRY HILLIARD Ledger Staff Writer larry@gaffneyledger.com

Thirty years ago, Duke Energy abandoned plans to build a nuclear power plant in Cherokee County.

Could it happen again?

Duke Energy won't be pulling the plug on its proposed William States Lee III nuclear power plant here, but it will likely push back the plant's startup date, according to sources familiar with the project.

Duke Energy had planned for the plant to become operational in 2018. But the economic downturn, flattening demand and escalating construction costs have caused Duke Energy officials to delay the plant opening until 2020 or later, the sources said.

Duke Energy is expected to announce the delay some time this month.

The company is continuing its licensing procedures and company officials have said they will wait until 2010 before making a final decision on the project. But some factors are making the decision to move forward less certain.

According to news reports, Duke's summer peak demands over the next nine years are expected to grow at onehalf the growth rate of the 1990s.

Rising costs is another factor. When Duke announced plans in 2006 to purchase 2,000 acres in McKowns Mountain for the proposed project, it estimated the project cost between $4 to $6 billion. Industry experts now put the cost to build a nuclear reactor at $6 billion. Duke plans to build two on the site.

Cherokee County Development Board Executive Director Jim Cook said he wouldn't be shocked if Duke delayed the project.

"A decision to delay wouldn't be unexpected when you are dealing with a long-term project such as this one," Cook said. "But a delay would give Duke more flexibility in meeting its goals in regard to this project. But we still expect this project will happen."

A telephone message left for nuclear media relations spokesperson Rita Sipe on Thursday wasn't returned.

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