New Projects, Reactors

Exelon cancels plans for new nuclear plant in Texas

Exelon Corp. (NYSE: EXC) on August 28 said it is halting efforts to gain initial federal regulatory approvals for new nuclear construction in Victoria County, Texas.

The company said it has notified the Nuclear Regulatory Commission (NRC) that it will withdraw its Early Site Permit application for an 11,500-acre tract southeast of Victoria. Exelon said the action is in response to low natural gas prices and economic and market conditions that have made construction of new merchant nuclear power plants in competitive markets uneconomical now and for the foreseeable future.

“This is all about the economics of the project, which are driven by commodity and financial markets. I cannot stress enough how important it was to us to have partnered with Victoria, and we look forward to other Texas partnerships in the future,” said Marilyn Kray, vice president of Nuclear Project Development for Exelon Generation.

Exelon originally submitted an application for a combined construction and operating license (COL) for the Victoria County site in 2008, but never made a decision to build a nuclear plant there. In 2010 the company applied for an Early Site Permit, a change in licensing strategy that allowed Exelon to continue with some aspects of site evaluation and regulatory approvals while deferring a construction decision for up to 20 years.

The August 28 withdrawal brings an end to all project activity.

Subscribe to Nuclear Power International magazine