Nuclear

Hitachi, GE to build NRG nuclear facilities

23 June 2006 — Hitachi Ltd. reported to Reuters that NRG Energy Inc. will soon pick Hitachi and General Electric Co. to build its new nuclear projects for $5.2 billion. This would be Hitachi’s debut in a major overseas nuclear power facility.

The biggest undertaking of NRG’s Texas repowering initiative will be construction of 2,700 MW of nuclear power at the existing South Texas Project (STP) site. On June 19, 2006, NRG filed a letter of intent with the Nuclear Regulatory Commission to construct two new GE ABWR units.

NRG says it intends to work with GE and Hitachi (which was involved in developing and constructing four ABWR plants operating in Japan) and other international suppliers to complete the project. It anticipates that the two units, STP Units 3 and 4, which are expected to cost $5.2 billion, to begin operation in 2014 and 2015, respectively. NRG Energy owns 44 percent of STP Units 1 and 2, so it is not new to the nuclear industry.

According to Reuters, a Hitachi spokesman said Hitachi would provide key equipment, and GE is likely to be in charge of talks with the U.S. government and fuel procurement, making the alliance complementary.