Florida Power & Light Company has suspended work on a new two-reactor project at Turkey Point citing the “deteriorating regulatory environment”. The announcement comes in response to a decision by the Florida Public Service Commission (PSC) to deny FPL’s request for a base rate increase in 2011.

FPL said that development of two new Westinghouse AP1000 nuclear reactors at Turkey Point would be immediately suspended, although work to receive license from the Nuclear Regulatory Commission would continue. Turkey Point is just one of $10 billion worth of investment projects that has been put on hold.

Chairman and CEO of FPL Group Lew Hay said: “This decision was about politics, not economics, and unfortunately it comes at a time when our state urgently needs jobs and investment.”

In a statement Westinghouse said that the PSC’s decision “will likely have a significant and long-term negative impact on both the Florida economy and environment.”

It added: “Conservatively estimated, construction of the two new AP1000 nuclear power plants that FP&L has now delayed would have each generated 2,500 good, local jobs across a wide range of disciplines, including but not limited to: the building trades, manufacturing, project management, information technology and the services sector.”