PPL Corp. has decided to play "Beat the Clock."

The grand prize: up to $100 million.

PPL said Thursday it will revive its Holtwood expansion project and pursue federal stimulus money to help finance it.

If obtained, the stimulus package's tax credits would offset the soaring financing costs and other factors that led PPL to cancel the $440 million project in December.

But to qualify for the assistance in the stimulus package, the extra 125 megawatts of capacity to be added to Holtwood must be operational by Jan. 1, 2014.

Hence the hurry.

PPL estimates it will make the deadline with months to spare, but that's based on several assumptions.

The first assumption is that the company can secure the necessary permits and approvals in a timely fashion.

So, to get the project back on track, PPL immediately will resume efforts to get those permits and approvals.

The biggest approval needed is from the Federal Energy Regulatory Commission.

FERC already had spent a year reviewing PPL's application when PPL dropped the project.

"We're going to ask FERC to pick up where we left off," rather than start the review process all over again, explained PPL spokesman George Lewis.

"We're hopeful that it happens, because we need quick approval so we can start in time, in order to finish in time, in order to get the tax credits. All the dominoes have to fall in the right order," he said.

PPL is asking FERC to amend Holtwood's license, allowing for the generation of more electricity, and to extend the license's expiration date from 2014 to 2030.

Separately, PPL is seeking permits from the state Department of Environmental Protection and the U.S. Army Corps of Engineers.

PPL hopes to start construction on the Susquehanna River plant expansion in February. If that happens, the additional generating units should be operational in spring 2013, months ahead of the deadline.

"It's a three-year construction project, so you can see the time crunch we're under. If we were going to restart this project, we had to do it now. Time is of the essence," said Lewis.

The $787 billion federal stimulus package, signed into law two months ago by President Barack Obama, includes tax credits for investments in new electrical generation using renewable energy. The credits could fetch PPL $100 million, Lewis said.

"The federal government is looking for 'shovel-ready' projects to move forward," explained Lewis. "We still have to get permits and approvals from government agencies, most notably FERC. But we've got the design and engineering work done.

"If we get the permits and approvals, we're ready to build."

PPL said the project would lead to 500 construction jobs and enough additional generation to supply 100,000 homes. It also would improve fish lifts at the plant.

Holtwood has been generating power since 1910. It now generates 108 megawatts, using the energy of river water held back by its 55-foot dam.


Staff writer Tim Mekeel can be reached at tmekeel@LNPnews.com or 481-6030.