Wednesday, February 17, 2010

NRG Energy and CPS Energy Settle Dispute Over Nuke

NRG Energy settled the dispute with CPS Energy (Antonio municipal utility) by reducing the utility's stake in the south Texas nuclear power project to 7.6%, from 50%, with the joint venture (NRG, Toshiba, Nuclear Innovation North America) retaining 92.4%. CPS sued, alleging that NRG misled the utility on project costs and saying it might withdraw.

The agreement ends a $32 billion lawsuit that CPS filed in December to reduce its participation in the project, and allows development of the plant to proceed. The companies have filed for federal loan guarantees. CPS estimates its remaining stake in the project is worth about $1 billion. The agreement requires CPS to help with the project's loan guarantee application, but excuses the utility from spending more money on the project. The utility has said it has spent about $370 million on the project's engineering and permitting.

The project, estimated to cost between $12 billion, would add two new nuclear power units to an existing nuclear reactor, expanding the facility by 2,700 megawatts, enough power for more than 2 million homes. (WSJ, 2/17/10)

No comments: