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NRG Energy Signs Project Services Agreement with Toshiba Corporation for South Texas Project Nuclear Power Plant Expansion
Under this agreement, Toshiba will support NRG in the design, engineering, construction and procurement of two new nuclear reactors and will allow NRG to access Toshiba's recent successful experience in the construction of Advanced Boiling Water Reactors. Financial details of the agreement are not being disclosed.
NRG also reserved the major, long-lead time components for the STP expansion project, including the first reactor pressure vessel, an important factor in achieving commercial operation by 2014.
"Our approach to expanding a nuclear facility is based on minimizing risk by working with partners who have built advanced nuclear plants before," said David Crane, NRG's President and CEO. "Toshiba has an unblemished record of on time, on budget delivery of advanced nuclear plants and we look forward to working with them to make this essential no-carbon baseload plant a technical, commercial and environmental success."
In June, 2006, NRG filed its letter of intent to submit an application with the Nuclear Regulatory Commission to construct STP units 3 & 4. Construction of unit 3 is expected to start at the end of 2010. The two additional units will be built adjacent to the currently operating South Texas Project units 1 and 2 in Bay City, Texas.
The new nuclear units, which will be Advanced Boiling Water Reactors, are part of the Company's RepoweringNRG initiative -- a multibillion dollar plan to build approximately 10,000 MW of new, highly efficient, clean power generation facilities that leverage NRG's existing facilities' infrastructure, support a diverse fuel mix to reduce energy dependence, and implement best available technologies that reduce the Company's carbon intensity.
About NRG
A Fortune 500 company, NRG Energy, Inc. owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and West regions of the United States and also in Australia, Germany and Brazil. NRG is a member of USCAP, a diverse group of business and environmental organizations standing together in calling for mandatory legislation to achieve significant reductions of greenhouse gas emissions. NRG is also a founding member of "3C -- Combat Climate Change," a global initiative with 42 business leaders calling on the global business community to take a leadership role in designing the road map to a low carbon society. More information on NRG is available at www.nrgenergy.com.
About the South Texas Project
STP's reactors supply power to Houston, Austin, San Antonio, Corpus Christie and surrounding areas. The plant is managed by the STP Nuclear Operating Company and is owned by NRG Energy (44 percent), CPS Energy (40 percent) and Austin Energy (16 percent). STP's twin reactors produce nearly 2,700 megawatts of electricity, enough to power more than 2.1 million homes. More information about the South Texas Project is available at www.stpnoc.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG's expectations regarding the South Texas Project and nuclear power plant expansion and typically can be identified by the use of words such as "will," "expect," "believe," and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, permitting and regulatory obstacles, and construction delays.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.
SOURCE: NRG Energy, Inc.
NRG Energy, Inc. Media: Meredith Moore, 609-524-4522 or Lori Neuman, 609-524-4525 or Dave Knox (Texas), 713-795-6106 or Investors: Nahla Azmy, 609-524-4526 or Kevin Kelly, 609-524-4527