ST. PETERSBURG, Fla., Oct. 1, 2012 /PRNewswire/ -- Below is a statement issued today by Alex Glenn, incoming president of Progress Energy Florida, a subsidiary of Duke Energy.

Today, we provided to the Florida Public Service Commission the report from Zapata Inc., regarding its independent review of the potential repair plan for the Crystal River Nuclear Plant (CR3).

As part of the ongoing evaluation of the pending decision to repair or retire the unit, and given the complexity of the issue, Duke Energy commissioned the independent technical review in March to further analyze the potential scope, risks, costs and schedule of the prospective repair. Independent evaluations such as this are common in the nuclear industry when addressing complex matters, particularly a first-of-a-kind engineering, construction and licensing project like the one contemplated at CR3.

The review found that the current repair plan appears to be technically feasible, but significant risks and technical issues still need to be resolved, including the ultimate scope of any repair work. The Zapata report estimated the repair cost at approximately $1.49 billion. Progress Energy's prior assessment indicated expected repair cost of $900 million to $1.3 billion, with the costs trending up. The report confirmed, as Progress Energy's assessment had indicated, that an increase in the scope of repairs will increase the cost and extend the schedule.

Zapata also prepared approximate estimates for more extensive work based on potential unplanned scenarios, up to and including its worst-case scenario. This scenario assumed that the company would perform Progress Energy's more limited scope of work, and at the conclusion of that work, additional damage would occur in the dome and in the lower elevations, which would force the replacement of each. Under the worst-case scenario, Zapata estimated that the cost could be $3.43 billion with a 96-month schedule.

We have not made a final decision on whether to repair or retire CR3. The decision and schedule will be driven by the final analysis, not vice-versa. The evolving analysis also will provide increasing detail on cost and schedule expectations.

As part of our ongoing commitment to safety and doing what is best for our customers, joint owners and investors, we will carefully analyze and settle each finding as we continue to evaluate the technical and licensing implications, estimated costs and the time required to make the repair.

We will proceed with a repair option only if there is a high degree of confidence that the repair can be successfully completed and licensed within the final estimated costs and schedule, and is in the best interests of our customers, joint owners and investors.

Progress Energy Florida

Progress Energy Florida, a subsidiary of Duke Energy (NYSE: [ DUK ]), provides electricity and related services to more than 1.6 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. More information is available at [ www.progress-energy.com ].

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at: [ www.duke-energy.com ].

Media Contacts: Mike Hughes, Suzanne Grant– 800-559-3853

SOURCE Duke Energy

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Progress Energy Florida Issues Statement Regarding Filing of Crystal River Nuclear Plant Engineering Report

Progress Energy Florida Issues Statement Regarding Filing of Crystal River Nuclear Plant Engineering Report