The Harris Plant is located approximately 20 miles southwest of Raleigh in western Wake County. The company has not yet made a final decision on whether to build and does not expect to make that decision for another year or more. The filing will help ensure that nuclear energy remains a viable resource option for the future, if and when the decision is made to build a new plant.

"As our region and its demand for electricity grows, energy conservation and efficiency programs and the development of renewable energy sources are essential, but we must also evaluate investments in advanced nuclear reactors as a way to continue to provide reliable, environmentally sound power to meet our region's growing demands for electricity," said Progress Energy Chairman and CEO Bill Johnson.

"State of the art nuclear power, which does not generate greenhouse gases, can help us meet those needs while at the same time protecting the environment."

"At Progress Energy, we are taking a balanced approach to securing our customers' energy future," added Johnson. "Our customers rely on us to ensure their electricity needs, and taking these preliminary steps is necessary for us to meet that obligation."

Nuclear power is critical to controlling climate change
Carbon-free nuclear power is an important part of Progress Energy's Balanced Solution strategy to deliver clean, reliable energy at stable prices to our growing customer base.

"The overall demand for electricity is not going to decrease in our fast- growing part of the country and, as a utility, we have an obligation to meet that growing demand," added Johnson. "Using nuclear power, we can help secure our energy future with a fuel that does not contribute to global warming."

Renewables and energy efficiency are equally important components of the Balanced Solution strategy. In November, the company issued a request for proposals to generate electricity from renewable energy sources. Preliminary proposals were submitted in December and are currently under review. The company will determine the proposals from which to seek additional information by the end of April 2008.

Along with renewable energy, Progress Energy's balanced solution includes energy efficiency and conservation programs. Last year, the company launched its "Save the Watts" campaign, which promotes customer education and awareness about energy efficiency and demand side management programs. Progress Energy is in early implementation of several new programs to help residential customers use energy more wisely, including programmable thermostats and water heaters, encouraging the use of energy-saving compact fluorescent light bulbs, and digital devices that measure real-time energy use.

Progress Energy Carolinas also announced a goal of displacing 2,000 megawatts of power generation through demand side management and energy- efficiency programs, doubling the 1,000 megawatts already being saved through existing programs. The company expects to file its first set of programs for commission approval as soon as the rules implementing Senate Bill-3 are issued by the North Carolina Utilities Commission.

COL application and review process
The company first informed the NRC in August 2005 of its plans to submit a COL application for possible nuclear expansion in the Carolinas. The COL covers up to two reactors. Related to its energy efficiency initiatives, Progress Energy has notified the NRC that if the company moves forward with plans for a new nuclear plant at the Harris site, the new plant would be online in 2018 or beyond.

The licensing process, once completed, gives the permit holder the option to construct and operate units on a specific site; it does not obligate the company to build.

A final decision to build another nuclear plant is still more than a year away. Progress Energy is taking steps now to keep the option for nuclear available in the future.

Selection of the Harris Plant site
Progress Energy chose the Harris site in 2006, based on availability of transmission lines, proximity to cooling water and to Progress Energy Carolinas' largest area of customer concentration. If the decision is made to move forward with building the two units, they would not be online until 2018 or beyond.

The Harris Plant site was originally planned for four nuclear reactors, but due to changing economic conditions in the 1970s and 1980s, only one reactor was built. The Harris site offers a large amount of available land - approximately 35 square miles - and has an adequate water supply.

The Harris site has transmission capacity that can accommodate additional electricity generated and transport it to where it is needed. This capability reduces the need to build more transmission lines for a single new unit and would ultimately reduce the overall project costs.

Westinghouse technology
For purposes of the COL application, Progress Energy has selected Westinghouse to supply the reactors for possible expansion of its nuclear generating fleet in the Carolinas and Florida. The AP1000 is an advanced 1,100-megawatt nuclear power plant that uses passive safety system designs and engineering simplicity to enhance plant reliability and reduce construction costs.

The AP1000 has 87 percent less cable, 83 percent less pipe, 50 percent fewer valves and 35 percent fewer pumps than the generation of reactors in operation today.

As with the existing Harris Plant, and all nuclear plants in Progress Energy's fleet, there are multiple, redundant, back-up safety systems in place.

Potential nuclear expansion in Florida
In December 2006, Progress Energy named a site in southern Levy County as the preferred location for potential nuclear expansion in Florida. The Levy County site is about 3,000 acres, located about seven miles inland from the Gulf of Mexico and eight miles north of the company's Crystal River Energy Complex in Citrus County.

The proposed site is going through detailed assessments, including environmental and weather studies. Progress Energy Florida anticipates filing a need case with the Florida Public Service Commission in early 2008. If the decision is made to move forward with building the two units, they could be online as early as 2016 to 2017.

Related Links
Progress Energy
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at Energy-Daily.com

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