Duke Energy Buys Southern Company Out of Lee Nuclear Power Project

Just off the wire:

Duke Energy announced today that, subject to board approval, it intends to purchase Southern Company’s 500-megawatt interest in the proposed William States Lee III nuclear power project, making 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. The two-unit Lee Nuclear plant proposed for Cherokee County, S.C., 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 the two proposed new nuclear units at Plant Vogtle near Waynesboro, Ga. Duke Energy management will recommend to the company’s board of directors at its May 10 meeting that Duke proceed with the plant without Southern Company’s participation.

“Lee Nuclear is an important part of our strategy for meeting growing demand,” said Ellen Ruff, president, Duke Energy Carolinas. “Having its entire output available will be a benefit for electric customers in the Carolinas.”