NRG makes peace with CPS
President Obama's announcement (videos) Feb 16 of an $8.3 billion loan guarantee for twin Westinghouse 1,150 MW AP1000 reactors at Southern's Vogtle site in Georgia has snapped heads to attention in Texas. Obama also said he would ask Congress for an additional $36 billion in loan guarantee authority as part of his FY2011 budget.
There were two immediate effects.
First, NRG (NYSE:NRG) settled its ugly legal dispute with San Antonio's municipal electric utility CPS Energy over its planned investment in twin Toshiba sourced 1,350 MW ABWR reactors in the South Texas Project.
This move opens the way for support from CPS for the crucial federal loan guarantee. NRG said repeatedly without it the utility could not proceed with the project.
Second, while CPS reduced its investment from 40% to 7.6%, it will now stand shoulder-to-shoulder with NRG in support of DOE loan guarantees for the project. This financial confidence builder is a key success factor for STP units 3&4. Having CPS Energy endorsing the NRG project will be an important signal to DOE when it comes to a decision about the project. And that decision is will be here soon.
Read the full story exclusively at the EnergyCollective.
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