A Florida Public Service Commission (PSC) review of Florida Power & Light Company’s (FPL) nuclear decommissioning study shows that no fund contributions are required at this time, based on current cost estimates and earnings assumptions.
First required about 30 years ago, decommissioning studies estimate the costs to dismantle and remove materials and equipment at each nuclear unit after its retirement and ensure that sufficient funds will be available to cover the projected costs. FPL must submit decommissioning cost estimates for its four nuclear units to the PSC every five years, including the trust fund balance dedicated to cover decommissioning costs.
In the past, FPL made monthly contributions to the decommissioning trust fund managed by external financial management firms. As found in the PSC’s review five years ago, today Commissioners again decided that adequate funds have been set aside to meet future expenses based on FPL’s current decommissioning cost estimates and escalation and fund earnings assumptions. Therefore, no new contributions are necessary.
Projected decommissioning costs for all four FPL nuclear units is $7.8 billion. Each FPL nuclear facility, its expected retirement date, and projected decommissioning costs follow.
- Turkey Point Unit 3: retires in July 2032, estimated decommissioning cost of $1.6 billion.
- Turkey Point Unit 4: retires in April 2033, estimated decommissioning cost of $1.8 billion.
- St. Lucie Unit 1: retires in March 2036, estimated decommissioning cost of $2.2 billion.
- St. Lucie Unit 2: retires in April 2033, estimated decommissioning cost of $2.2 billion.
Progress Energy Florida, Inc.’s nuclear decommissioning study is currently under review by PSC staff.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.