Progress Energy has agreement to buy materials for nuke plant

Progress Energy today announced an agreement to buy long-lead materials needed for its planned nuclear power plant in Levy County.

The St. Petersburg utility announced that it had signed a letter of intent with Westinghouse Electric and the Shaw Group Inc. for certain items, but it did not provide details on the cost or materials. Progress Energy estimated last month that it would cost $17-billion to build two Westinghouse AP1000 reactors, and transmission lines to carry the electricity from the site, several miles north of its Crystal River power station.            

"This is a prudent next step that will help us remain on schedule and preserve favorable pricing for key components," said Jeff Lyash, president and CEO of Progress Energy Florida, in a prepared statement released Monday afternoon.            

The utility last month filed an application for the plant with state regulators.            

Hearings have been scheduled for late May. Other regulatory hurdles include a site application with the Florida Department of Environmental Protection, and an operating and licensing application with the federal Nuclear Regulatory Commission. Progress Energy hopes to have the first 1,100-megawatt reactor online in 2016, and the second in 2017.            

-- Asjylyn Loder can be reached at aloder@sptimes.com or (813) 225-3117.