Emergency alerts at U.S. nuclear plants surged in 2011, reaching twice the levels seen in the past decade, the Nuclear Regulatory Commission said.

The 62 events and alerts were caused by a spike in two areas: the Aug. 23 earthquake that rattled plants up and down the East Cost, and an unusually high number of events related to toxic and flammable gas.

Figuring among the 2011 statistics were all three nuclear plants owned by Progress Energy in the Carolinas, as well as N.C. State University's research reactor in Raleigh.

"2011 presented the greatest number of emergency classification notifications for the years we have analyzed starting in 2001," the NRC report said.

Progress Energy and Duke Energy have set July 8 as a new date to complete their corporate merger, seven months past their original self-imposed deadline.

The two electric utilities set their new date in filing this week at the Securities Exchange Commission as they work toward completing their $26 billion deal. It means either company can abandon the merger after the set date expires, but they both have the option of adding more extensions.

Progress spokesman Mike Hughes said the new date is a formality, replacing the previous termination date that expired Monday because the merger is still being worked out.

"Having an initial termination date is fairly standard in agreements of this sort (which require lengthy approvals)," Hughes said by email. "It’s the date on which either company can walk away from the deal without paying a penalty."
 

State officials want Progress Energy to be crystal-clear with customers when it comes to one of the most sensitive topics in utility-customer relations: trees.

The Raleigh-based power company must spell out its policy on whether trees growing within 25 feet of a power line will be merely trimmed or entirely cut down, the N.C. Utilities Commission said today. Progress has issued conflicting information that is causing confusion and frustration among customers, the agency said.

The Utilities Commission directive stems from a recent case in which a Wilmington homeowner was irate over trees slated for elimination in his yard because they grew near a transmission line. The Commission said Progress had the right to cut down the trees in Thomas Hardin's yard in Wilmington, but the regulatory agency said the company's policies needed to be written more clearly so that other customers would have advance notice their lush landscapes were at risk of a buzz cut.

Nuclear safety officials dinged Raleigh-based Progress Energy for a minor safety violation at its Brunswick nuclear plant near Wilmington.

The Nuclear Regulatory Commission said this morning that the plant's emergency diesel generators were not properly protected from possible flooding during a hurricane. The generators are needed as a backup source of electric power to operate pumps and other emergency equipment required to keep nuclear fuel from melting down and releasing radioactivity.

The generators were not properly protected because the Brunswick plant had not sealed off the fuel-oil tank room that stores the diesel to run the generators.

The agency said the oversight was of "low to moderate safety significance." It did not merit a fine, but the NRC will increase its oversight of the nuclear plant with an extra inspection.

Progress Energy and Duke Energy this afternoon vowed to press ahead with their corporate merger, despite two previous rejections from federal regulators.

The two North Carolina electric utilities plan to file a revised proposal to address federal monopoly concerns, adding that the earliest possible date the $26 billion deal could be completed would be in March. Some Wall Street analysts are projecting the merger will take six more months to complete.

Charlotte-based Duke and Raleigh-based Progress announced 11 months ago they plan to form the nation's largest electric utility, with 7.1 million customers in six states. The Federal Energy Regulatory Commission said twice, most recently yesterday, that the merger would allow the two companies to manipulate market prices of electricity in North Carolina.

The federal commission wants the companies to give up control of power plants or transmission lines, either by selling or leasing those assets.

In a joint statement issued this afternoon, the companies said they will file a revised merger plan as soon as they review the federal commission's most recent order.

"The FERC ruling does not call into question the benefits of the merger," the joint statement said. "The combination of Duke Energy and Progress Energy will provide clear benefits for our customers, including overall lower corporate costs and $650 million in guaranteed benefits to customers in the Carolinas from the joint dispatch of the utilities' generation fleets and from power plant fuel savings."

Federal regulators have again rejected the proposed merger between Duke Energy and Progress Energy, assuring the $26 billion deal won't get done this year, and raising questions whether it can get done at all.

The Federal Energy Regulatory Commission said this evening the merger raises serious concerns about giving the companies too much monopoly power in North Carolina. Announced in January, the merger would create the nation's largest electric utility to be based in Charlotte. It would also result in the elimination of 1,860 positions, mostly in North Carolina.

The federal commission issued its ruling the day before the agency was expected to consider the matter at a public hearing in Washington on Thursday morning. The ruling blindsided executives at both companies, who had hoped for an approval of the deal they have been working on for the past 11 months.

"It's certainly a surprise," said Progress spokesman Mike Hughes. "We are reviewing the ruling as to what our options are."

Environmental advocacy organizations that were among the staunchest critics of the corporate merger between Duke Energy and Progress Energy have agreed not to fight the $26 billion deal in exchange for sweeteners that could be worth millions in electricity savings.

The agreement will require greater commitments to energy efficiency, pushing North Carolina's conservation goals to higher levels. The state's current green energy mandate -- which requires that of 12.5 percent electricity sales be met through a combination of renewables and efficiency programs by 2021 -- would likely be exceeded under today's agreement.

The last-minute agreement was announced this afternoon, the same day public hearings on the merger got under way before the S.C. Public Service Commission.

Over 1,100 employees at Progress Energy and Duke Energy have volunteered for an early out program as the companies look to cut nearly 1,900 positions in anticipation of their planned merger.

The greatest number of those who came forward work in North Carolina, where Progress plans to eliminate its corporate headquarters when it consolidates operation with Duke in Charlotte.

That means Duke and Progress will still have to eliminate several hundred more jobs through a combination of layoffs, retirements and resignations. The staff cuts will take place over the next three years as the company seeks to eliminate a total of 1,860 positions during that time.

Most of the staff cuts will come through the voluntary buyout program offered several weeks ago at the two North Carolina electric companies. They said today that 1,153 workers have signed up to leave as part of a voluntary buyout program. They will be paid a severance based on the length of their tenure with the companies.

With a decision from the feds possible in the coming weeks on the $26 billion merger between Duke Energy and Progress Energy, participants are jockeying for last-minute advantage in the proceedings.

The towns of New Bern and Rocky Mounty are making a final push to persuade the Federal Energy Regulatory Commission that the merger will give the two utilities too much power to manipulate electricity prices.

The FERC, which is largely concerned with monopolies and price manipulation, is one of two major hurdles the merger must clear. The N.C. Utilities Commission is evaluating the merger's costs and benefits to the state, but is not likely to rule until the FERC makes its decision.

Duke and Progress, which announced their merger nearly a year ago, have asked the FERC to rule by Dec. 15 so they can complete their merger this year, forming the nation's largest electric utility. They have plans in place to cut 2,000 positions when they integrate the two companies and establish headquarters in Charlotte.

Still facing a series of regulatory hurdles to their planned merger, Duke Energy and Progress Energy have cleared what might be described as a speed bump along the way, winning approval from the Nuclear Regulatory Commission that's necessary to consummate their $26 billion deal.

The NRC said Raleigh-based Progress will be able to transfer its nuclear operating licenses to Charlotte-based Duke when the two companies are combined.

Progress currently operates five nuclear reactors at four sites in the Carolinas and Florida, including the Shearon Harris plant in southwestern Wake County. When those units are combined with Duke's seven units, Duke will operate the largest regulated nuclear fleet in the country.

The NRC ruling, issued Friday, is a formality with little practical consequence. Progress is the sole operator of its nuclear plants, and will remain the operator when it becomes a subsidiary of Duke. The license transfer will not affect plant operations, decommissioning funding or financial qualifications.