CERAWEEK-FPL may delay nuclear plants; seek loan guarantee

* New reactors may be delayed beyond 2018

* FPL may seek federal loan support

By Eileen O'Grady

HOUSTON, March 11 (Reuters) - Florida Power & Light is studying a delay in construction of two proposed nuclear reactors in Florida and may reconsider seeking a federal loan guarantee, Moray Dewhurst, vice chairman of the utility's parent FPL Group FPL.N, said on Thursday.

In January, Juno Beach, Florida-based FPL said it would halt spending on projects in the state representing about $10 billion of investment over the next five years because of a negative regulatory ruling in the utility's rate case.

The company is expected to outline exactly how it will pare its capital program in the second quarter.

Flordia's electric demand, hard-hit by the recession, and lower natural gas prices may allow the utility to delay the date it needs additional power from two new units proposed at its Turkey Point nuclear station beyond the planned 2018-2020 timeframe, Dewhurst said on the sidelines of the IHS CERA Week energy conference in Houston.

"We need to look at what is the right timing for nuclear," Dewhurst said.

The company will continue to spend money to pursue its application for a license to build the new reactors from the U.S Nuclear Regulatory Commission, Dewhurst said.

However, FPL may change course and seek a federal loan guarantee as it moves forward to build the new reactors, expected to cost from $12 to more than $18 billion, he said.

FPL was one of only two U.S. utilities that has proposed building a new nuclear plant that did not apply to the Department of Energy for a federal loan guarantee created under the Energy Policy Act of 2005.

"We were skeptical of loan guarantee program at first," Dewhurst said.

President Barack Obama announced the first commitment for a DOE grant under the program would go to Southern Co (SO.N). The current $18.5 billion budget is not expected to fund more than two other nuclear projects, but the administration has proposed increasing the loan guarantee program to more $54 billion which would encourage other companies to move forward.

"With the president's new-found commitment to expanding nuclear and with any middle-of-the-road concensus on climate change that nuclear must be in the mix, that could change how we go forward," Dewhurst said.

While Dewhurst said he has not seen the company's ongoing analysis that will determine its future capital spending program program, he said it is "more likely" than not that construction of the new reactors slips beyond the current timetable.

Under a Florida law passed to advance Florida Gov. Charlie Crist's desire to address global warming, customers of FPL and Progress Energy's (PGN.N) Florida unit, are already paying certain costs related to development of proposed new nuclear plants.

(Editing by David Gregorio)