Merger will have no immediate effect on H.B. Robinson plant
by BOB SLOAN
Editor
The proposed merger between Duke Energy and Progress Energy Inc. announced Monday will have no immediate effect on the H.B. Robinson Nuclear Plant, according to Mike Hughes, director of external communications for Progress Energy Inc.
“Business as usual,” Hughes said. “In the short term it will have no effect on the plant. It will remain an integral part of the Progress-Energy fleet in the Carolinas. It has been a vital part of our operations for 40 years and will continue to be such.”
If approved, the $26 billion transaction will create the nation’s largest utility. It will have the country’s largest regulated customer base, providing service to approximately 7.1 million electric customers in six regulated service territories - North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio.
The combined company will be called Duke Energy. Present Progress Energy Chief Executive Officer William Johnson will serve as CEO of the company following the merger.
Duke Energy officials said the merger should take close to a year to approve.
Hughes said the merger is a positive move for both companies as well as their customers and employees.
“In the long term, combining the two companies will be a huge undertaking,” Hughes said. “We will be integrating plants and operations within the Progress Energy and Duke nuclear fleets. The larger fleet will afford us the opportunity to increase productivity, efficiency and safety.”
Hughes said Progress Energy Inc. estimates savings of $600-$800 million over the first five years following the merger. He said that much of those savings will be passed on directly to customers through reduced fuel costs.
“We anticipate a seamless transition once the merger has been approved,” Hughes said.
The 719-megawatt H.B. Robinson Plant has been in operation since 1971. The plant presently employs 475 workers.
The plant changed leadership in October of last year. Robert Duncan II replaced Eric McCartney as vice president following a series of problems that resulted in shut downs.
Two electrical system fires in March led to a shut down of nearly fourth months. The plant re-opened in July, but was shut down again in September after a control problem with one of the plant’s turbines. In October, the plant was shut down for 40 days because of a problem in one of the reactor coolant pump motors.
The Nuclear Regulatory Commission has found that none of problems which led to the shut downs were caused by or resulted in issues that would adversely affect public health or safety.