NRG Signs Project Services Agreement With Toshiba For STP Nuclear Power Plant Expansion

Princeton, NJ - NRG Energy, Inc. and STP Nuclear Operating Company have signed a project services agreement with Toshiba Corporation, a major Japanese manufacturer of heavy electrical equipment, regarding two new nuclear units planned for the South Texas Project (STP) location. The new units, STP 3 and 4, will total approximately 2,700 megawatts — enough to power more than 2.1 million homes — and are scheduled to become operational in 2014 and 2015, respectively.

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.

SOURCE: NRG Energy, Inc.