Jax Daily

It appears that local utility JEA is nearing a deal to add 206 megawatts of nuclear generated electricity to the local powergrid. Nuclear is considered more environmentally friendly that coal and natural gas, and it is expected to be more econonically competitive as fuel costs continue to rise.

The Times-Union reports…

The energy, which will be critical as the region grows, will be purchased from a nuclear plant in Eastern Georgia and make up about 5 percent of the utility’s energy mix.

JEA’s board of directors decided earlier this year that nuclear energy should make up about 10 percent of its power. The move was in response to a changing political climate at the state and federal levels calling for lower carbon emissions.

The 20-year contract with the Municipal Electric Authority of Georgia is expected to start in 2016, after Plant Vogtle is expanded. The plant is about 30 miles south of Augusta.

Randy Boswell, JEA’s vice president for corporate data, said the deal is done and he’s awaiting the final paperwork. He said the city-owned utility likely will pay about $80 for every 1,000 kilowatt-hours it needs from the plant. The cost would add up to millions of dollars annually, he said.

“That’s in 2016 dollars. It would be the equivalent of about $50 today,” Boswell said. “That’s a big number, but based on where we are with coal and gas, that’s competitive.”

Using natural gas to generate 1,000 kilowatt-hours generally costs from $90 to $100, he said, which cuts into revenue potential. Consumers had been paying $95.93 for the same amount of energy, but this month will begin paying $110.93. JEA raised the rate to offset a $61 million deficit as the cost of fuel skyrocketed in recent months.

Fuel costs and pollution concerns thrust into question how many nuclear reactors could be built in the United States in coming years. Boswell said it’s unclear at this point how nuclear energy will affect JEA customer bills.