First COL for Texas

26 September 2007

NRG Energy and South Texas Project Nuclear Operating Company have submitted a combined construction and operating license (COL) application for two new ABWR units at the South Texas Project, USA.

The application is the first complete COL submitted to the Nuclear Regulatory Commission.

NRG Energy said the total rated capacity of the new units, 3 and 4, would equal or exceed 2700MWe, and the units would be on line in 2014 and 2015 following construction from 2010.

A spokesman for NRG Energy said: "We are assembling the team for the construction of South Texas Project units 3 and 4. We chose the ABWR technology because it is already certified by the Nuclear Regulatory Commission and it is proven technology with an outstanding construction and operation record.

"We have a project services agreement with Toshiba to support NRG in the design, engineering, construction and procurement of the two new units and that will allow NRG to access Toshiba’s recent successful experience in the construction of ABWRs. We are developing the most viable and best project we can – and having all available ABWR-experienced providers working with NRG will help ensure the project comes in on time, on budget and to the most exacting standards.

"As such, we are in discussions with GE-Hitachi to bring their experience onboard and to coordinate the different expertise and experience the different vendors bring to the different parts of the construction effort."

In June 2006, NRG Energy notified the Nuclear Regulatory Commission of its intention to construct units 3 and 4.

South Texas Project Nuclear Operating Company, together with a contracting team led by GE-Hitachi Nuclear Energy and Bechtel, prepared the COL for units 3 and 4 in just over one year.

With the COL submitted, the regulatory commission will begin an estimated two-month acceptance review process. The regulatory commission could take up to 42 months for its detailed review process.

At the beginning of September, NRG Energy and South Texas Project Nuclear Operating Company signed a project services agreement with Toshiba for the two new nuclear units.

Under the agreement, Toshiba will support NRG with design, engineering, construction and procurement of two new nuclear reactors, allowing NRG to access Toshiba’s experience constructing ABWRs.

NRG also reserved the major, long-lead time components for the South Texas Project expansion project, including the first reactor pressure vessel.

Fluor later announced that its Power Group was awarded a contract by Toshiba for engineering, procurement and construction-related services for the two new nuclear reactors planned for the South Texas Project.

The 12,220-acre site and 7000-acre cooling reservoir were originally designed for four units. The two new units will be built adjacent to the currently operating units 1 and 2.

NRG Energy owns 44% of South Texas Project.

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