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Texas Nuclear PLA Brings Millions of Hours of Construction Labor

 

April 14, 2010

Nuclear Control Room
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Six thousand construction workers will garner over 25 million hours of work over the next five years in south Texas as a result of a project labor agreement signed between nuclear development companies and the Building and Construction Trades Department of the AFL-CIO.


Two new nuclear units of the South Texas Project—recognized for years as one of the safest, most productive and lowest cost nuclear plants in the world—will be built 100 miles southwest of Houston in Matagorda County.

Construction is expected to begin in 2012, with units coming online in 2016 and 2017. Says Mark Ayers, President, Building and Construction Trades Department and former Director of IBEW’s Construction Department:

Nuclear power is making a comeback in the United States.  And America’s building trades unions are determined to assist the industry to ensure that this comeback is a resounding success story…not only for the electric utility industry, but for the nation.

 Read Press Release:

 

FOR IMMEDIATE RELEASE

Project Labor Agreement with America’s Building Trades Unions

Announced for South Texas Project Nuclear Power Expansion

Up to 25 million hours of work for as many as 6,000 construction workers over five years

NEW YORK, NY – April 8, 2010 –Nuclear Innovation North America LLC (NINA), the nuclear development company jointly owned by NRG Energy, Inc. (NYSE:NRG) and Toshiba Corporation, has announced an agreement for the Building and Construction Trades Department (BCTD) of the AFL-CIO to provide skilled union labor to construct the two new nuclear units at the South Texas Project (STP).

Approximately 6,000 people will work up to 25 million hours to build the new units, STP 3&4, which are located about 100 miles southwest of Houston in Matagorda County, Texas. Construction of the new units is expected to begin in 2012, once the expansion receives its Combined License from the Nuclear Regulatory Commission, and should last five years with unit 3 coming online in 2016 and unit 4 in 2017.

“New nuclear construction at STP will be an integral part of the American nuclear renaissance and  rebuilding the nation’s energy infrastructure,” said Steve Winn, Chief Executive Officer of NINA. “Clean reliable nuclear energy is key to meeting the environmental challenges we face as well as reducing our nation’s dependence on foreign energy. To ensure we can achieve these important goals and can build STP 3&4 and the many new nuclear units to follow, it is critical that we have a skilled pool of American workers. This agreement and the skilled labor it represents will help make that possible.”

A 2010 economic study conducted by The Perryman Group, a Texas economic and financial analysis firm, estimates construction of STP 3&4 will generate more than $15 billion in business activity in America as well as $3.6 billion in spending and $600 million in local and state revenues annually once the two units are operational.

“Nuclear power is making a comeback in the United States.  And America’s Building Trades Unions are determined to assist the industry to ensure that this comeback is a resounding success story…not only for the electric utility industry, but for the nation,” said Mark H. Ayers, President, Building and Construction Trades Department, AFL-CIO. “To further that partnership, we have embarked upon an unprecedented mission of customer-centric innovation that will make us a truly value-added partner for the nuclear and electric utility industry.  And that commitment is reflected in the agreement that we have structured for the South Texas Project expansion.” 

The new units will not emit any greenhouse gases, avoiding emissions of almost 22 million tons of carbon dioxide as well as thousands of tons of sulfur, nitrogen and other emissions every year when compared with traditional fossil-fueled plants.

STP has been recognized for years as one of the safest, most productive and lowest cost nuclear plants in the world. In 2009, generation from the existing STP site delivered the most power of any two-unit nuclear site in the country for the sixth year in a row. STP has earned more national industry honors than any of its peers in the country and is the only two-time winner of the industry’s highest commendation, the B. Ralph Sylvia Best of The Best Award.

The STP expansion will use Advanced Boiling Water Reactor (ABWR) technology, the only Nuclear Regulatory Commission-certified design that is fully engineered with a history of on-time, on-budget construction and superior operating results upon startup. NINA’s Engineering, Procurement and Construction Contractor, Toshiba, has experience building ABWR units in Asia where they have operated for more than a decade. Toshiba’s proven track record ensures the lowest first-of-a-kind technology risk and provides greater certainty on critical factors such as cost, schedule, process, quantities and final result.

About Nuclear Innovation North America

Nuclear Innovation North America (NINA) is a partnership between NRG Energy (88%) and Toshiba (12%) focused on developing new nuclear expansion projects using Advanced Boiling Water Reactor (ABWR) technology—the only advanced nuclear technology certified by the Nuclear Regulatory Commission that has been built on time and on budget. NINA is currently developing the 2,700 megawatt South Texas Project expansion through the South Texas Project Nuclear Operating Company. NINA is also exploring other development opportunities to employ ABWR in additional projects across North America.

About The Building and Construction Trades Department, AFL-CIO

The Building and Construction Trades Department is an alliance of 13 national and international unions that collectively represent over two million skilled craft professionals in the United States and Canada.

Safe Harbor Disclosure

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 our expectations regarding the timing and completion of STP Units 3 and 4, and typically can be identified by the use of words such as “will,” “expect,” “estimate,” “anticipate,” “forecast,” “plan,” “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, successful partnering relationships, loan guarantees, hazards customary in the power industry, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, construction delays, changes in the wholesale power markets, changes in government regulation of markets and of environmental emissions, the condition of capital markets generally, and our ability to access capital markets.

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.