Point Beach sale approved for $1 billion

19 September 2007

A two-reactor power plant in Wisconsin, USA, has been sold for about $1 billion.  The plant's former owners are to buy the units' power output until 2033.

Point Beach comprises two pressurized water reactors, located near Two Rivers, Wisconsin. Its former owners, Wisconsin Electric Power Company (We Energies) agreed on 20 December 2006 with Florida Power and Light Energy (FPL) to hand over the plant for $783 million, and buy its stock of fresh nuclear fuel and 'other items' for $215 million.

The sale was approved by the Public Service Commission of Wisconsin on 18 September after some adjustment. The commission said the value of the deal was "approximately $1 billion." It continued to say the transaction "provides significant economic value to ratepayers, that it transfers operational risks away from We Energies' customers, and that it ensures Wisconsin would continue to have a voice in the operation of the facility in the future."

FPL will take over management of the plant, from current contractors Nuclear Management Company. FPL said in December that the plant's 660 full-time employees would all be retained for at least 18 months during the transition.

The Point Beach units were completed in November 1970 and August 1972 respectively. Both have undergone major maintenance work, with their reactor vessel heads and steam generators replaced and now output a total of 1033 MWe. In December 2005, the Nuclear Regulatory Commission (NRC) extended the units' operating licenses by 20 years to 2030 and 2033. We Energies have agreed to purchase the power produced by the plant until that time.

In the 12 months to the end of June 2006, Point Beach 2 had the highest load factor of any nuclear reactor in the world, achieving 106.5% of its design output, according to figures from Nuclear Engineering International magazine. Its lifetime generation of 122.5 TWh equates to a 78.7% load factor.

We Energies have agreed to transfer $440 million from the plant's decommissioning fund to FPL - $80 million more than projected in December 2006. At the same time, We Energies will receive $300 million from the fund.

Further information

FPL Energy
We Energies

The Public Service Commission of Wisconsin

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