Duke Energy's largest nuclear plant receives approval to extend operations; supports growing energy demand, helps keep customer costs as low as possible

Rhea-AI Summary

Duke Energy (DUK) has received approval from the Nuclear Regulatory Commission (NRC) to extend the operating licenses of its Oconee Nuclear Station for an additional 20 years, enabling operations through 2053-2054. This marks Oconee as the first Duke Energy nuclear facility approved to operate for 80 years.

The extension supports Duke Energy's strategy to deliver cleaner energy while maintaining reliability and affordability. In 2024, Oconee implemented power uprate projects adding 45 megawatts across its three units. The company's six nuclear plants currently provide over 50% of Carolinas customers' electricity and more than 96% of the company's clean energy.

The federal nuclear production tax credit incentivizes efficient operations, helping lower customer costs. Duke Energy plans to pursue similar license renewals for its other nuclear facilities, with Robinson Nuclear Plant's application scheduled for April 2025.

Positive

• 20-year license extension approval ensures long-term operational stability
• Added 45 megawatts of power capacity through 2024 uprate projects
• Nuclear production tax credit helps lower operational costs
• Provides over 50% of Carolinas' electricity needs
• Generates 96% of company's clean energy production

Negative

• Significant ongoing investment required for maintenance and upgrades
• High upfront costs for equipment replacement (reactor heads, generators, turbines)

Insights

Energy Policy Expert

The 20-year license extension for Duke Energy's Oconee Nuclear Station represents a significant strategic win for the utility. This regulatory approval extends the plant's operation through 2053-2054, securing a critical baseload generation asset in Duke's portfolio.

This decision carries substantial economic implications. By extending existing nuclear operations rather than building replacement capacity, Duke avoids the enormous capital expenditures associated with new generation facilities. Nuclear plants typically operate with relatively low marginal costs once constructed, making life extensions highly cost-effective despite the necessary ongoing investments in maintenance and upgrades.

The article highlights that Duke's nuclear fleet provides 50% of the Carolinas' electricity and 96% of the company's clean energy generation. This underscores the strategic importance of these facilities to both grid reliability and emission reduction goals. The 45 megawatt increase from recent power uprate projects further demonstrates Duke's commitment to optimizing these assets.

This approval also establishes a precedent for Duke's broader nuclear strategy, as the company plans similar renewal applications for its other nuclear facilities, beginning with Robinson Nuclear Plant. The federal nuclear production tax credit mentioned will further enhance the economic competitiveness of these facilities.

For investors, this represents enhanced certainty around long-term assets and supports Duke's ability to meet both reliability requirements and clean energy objectives while managing customer costs - a crucial regulatory consideration in rate-regulated markets.

• The Nuclear Regulatory Commission (NRC) approves extending Oconee Nuclear Station's operating licenses by 20 years
• Duke Energy's six nuclear plants generate half of the Carolinas' electricity

CHARLOTTE, N.C., March 31, 2025 /PRNewswire/ -- The U.S. Nuclear Regulatory Commission (NRC) has renewed the operating licenses for Duke Energy's Oconee Nuclear Station for an additional 20 years. 

The approval of its subsequent, or second, renewed licenses enables Oconee, located in Seneca, S.C., to operate through 2053 and 2054, supporting the company's "all of the above" strategy to deliver a path to cleaner energy while protecting reliability and affordability for customers as regional electricity demand continues to grow. Nuclear generation is a vital part of Duke Energy's generation portfolio and is the only clean energy source that is always on and available 24 hours a day.

"Affordable and reliable energy is the key to South Carolina's continued economic prosperity, and nuclear power must play a key role as we work to shape our energy future," said South Carolina Gov. Henry McMaster. "The approval to extend Oconee Nuclear Station's operations for another 20 years is a critical step in ensuring South Carolina's energy generation keeps pace with our rapid development."

Oconee is the first of Duke Energy's nuclear facilities to reach the significant milestone of extending its license and receiving approval to operate for 80 years. Duke Energy is working toward extending the life of all of its existing nuclear units, with plans to submit a license renewal application for Robinson Nuclear Plant in Hartsville, S.C., in April of this year.

Maintaining safe and reliable operations is Duke Energy's primary focus, and the company invests heavily in maintenance and upgrades at its nuclear facilities to ensure they can operate through midcentury. At Oconee, the company has replaced its reactor vessel heads, steam generators, turbines, transformers, pumps, valves and other equipment to support longevity. In 2024, Oconee added a combined 45 megawatts by implementing power uprate improvement projects on all three units. Learn more about Oconee's road to subsequent license renewal and the team that made it possible.

Value of License Renewal 

Nuclear energy has safely and reliably provided electricity to Duke Energy's Carolinas customers for more than 50 years. In 2024, its six plants provided more than 50% of Carolinas customers' electricity and more than 96% of the company's clean energy.

Duke Energy's nuclear sites benefit customers and communities by reliably generating large amounts of electricity with low operating costs, while also providing thousands of well-paying jobs and producing economic and tax benefits for local communities. The federal nuclear production tax credit incentivizes our existing plants, like Oconee, to operate as cost-efficiently as possible, further lowering the cost of nuclear energy for our customers. 

"This is very good news for Duke Energy customers. The renewal of the nuclear licenses at Oconee will ensure reliable, non-emitting nuclear power continues to be supplied throughout our state. The Oconee nuclear plant is well run, safe and efficient, and it has been an invaluable employer to Upstate South Carolina," said U.S. Sen. Lindsey Graham. "I'm glad it will continue to operate for decades to come." 

Nuclear energy has and will continue to play an essential role in meeting Duke Energy's customers' rapidly growing and evolving energy demands. The company's expertise in and commitment to the continued safe and reliable operation of its existing nuclear plants are foundational to Duke Energy's energy transition. 

"Approval to extend Oconee Nuclear Station's licenses is a significant milestone for Duke Energy and provides significant learnings to use in completing license applications for our other plants," said Duke Energy Chief Nuclear Officer Kelvin Henderson. "As we address growth, modernize the fleet and invest in cleaner technologies, subsequent license renewal helps ensure nuclear energy continues to be a vital part of Duke Energy's generation portfolio."  

Licensing Background 

U.S. nuclear facilities are licensed by the NRC and were originally licensed to operate for 40 years based on economic considerations, not limitations of the technology. The process to renew a license for an additional 20 years requires a comprehensive analysis and evaluation to ensure the plant can safely be operated for the period of extended operation.

All Duke Energy nuclear plants have received initial license renewal to achieve up to 60 years of operation. Subsequent license renewal allows up to 80 years of operation.

• Oconee's original 40-year license: 1973/1974-2013/2014
• Oconee's 20-year license renewal: 2013/2014-2033/2034
• Oconee's subsequent 20-year license renewal: 2033/2034-2053/2054

Duke Energy's Nuclear Fleet 

Station	Location	Capacity
Brunswick	Brunswick County, N.C.	1,870 MW
Catawba*	York County, S.C.	2,310 MW
Harris	Wake County, N.C.	964 MW
McGuire	Mecklenburg County, N.C.	2,316 MW
Oconee	Oconee County, S.C.	2,554 MW
Robinson	Darlington County, S.C.	759 MW

*Catawba is jointly owned by North Carolina Municipal Power Agency Number One, North Carolina Electric Membership Corporation, Piedmont Municipal Power Agency and Duke Energy

Additional Resources 

• Visit Duke Energy's subsequent license renewal webpage.
• illumination: The road to Oconee's subsequent license renewal and the team that made it possible.
• Visit Duke Energy News Center for downloadable B-roll and high-resolution images of Duke Energy's nuclear plants.

Duke Energy 

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious energy transition, keeping customer reliability and value at the forefront as it builds a smarter energy future. The company is investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage.

More information is available duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Mikayla Kreuzberger
24-Hour: 800.559.3853

 

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SOURCE Duke Energy

FAQ

How long will Duke Energy's Oconee Nuclear Station operate after the license extension?

The Oconee Nuclear Station will operate through 2053 and 2054, following the NRC's approval of a 20-year license extension.

What percentage of Duke Energy's Carolinas electricity comes from nuclear plants?

Duke Energy's six nuclear plants provided more than 50% of Carolinas customers' electricity in 2024.

How much additional power capacity did Oconee Nuclear Station add in 2024?

Oconee added 45 megawatts of capacity through power uprate improvement projects across its three units.

What percentage of Duke Energy's clean energy production comes from nuclear power?

Nuclear power generated more than 96% of Duke Energy's clean energy in 2024.

Which Duke Energy nuclear plant is next in line for license renewal?

Robinson Nuclear Plant in Hartsville, S.C., with a license renewal application planned for April 2025.