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20 March 2007--The North Carolina Utilities Commission has issued a declaratory order saying that reasonable planning costs for a proposed nuclear plant ought to be recoverable in future Duke Energy rate cases whether or not the plant is built.
According to news reports, the order gives less than the full and specific type of ruling the utility had sought. Lawyers for Duke will now decide if they need to ask the state's General Assembly for legislation clarifying the cost recovery issue.
Duke plans to spend about $125 million this year on planning for the proposed William S. Lee nuclear plant in South Carolina. The company sought specific regulatory assurances on whether North Carolina's portion of those costs would be recovered in a timely manner.
Opponents said that such costs were already recoverable under proper conditions. They said Duke was seeking broad approval of planning costs before the commission could review them.
The ruling attempts to clarify that Duke could recover any prudent and reasonable costs spent in 2007 in planning for the plant. It also says costs approved in a later rate case could be recovered whether or not Duke builds the plant. The ruling stopped short, however, of listing which planning activities would be seen as prudent. And it specified that recovery could come only after a full rate case.
The ruling reportedly makes clear that the commission wants the utility to consider nuclear energy an option.
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