Contractors pledged to provide a new, lower cost estimate no later than Dec. 31, 2009
- By April Murelio -
According to a report in the San Antonio Business Journal, The San Antonio community should receive a revised cost estimate on the cost of building two new nuclear reactors at the South Texas Project by the end of the year.
CPS Energy senior executives said that after their discussions with Toshiba Corp. officials last week in Japan, the contractors pledged to provide a new, lower cost estimate no later than the end of the year. At stake is whether City Council will permit CPS Energy to go ahead with the development of the new units at the South Texas Project.
CPS Energy has a proposal in thhe works with partner NRG Energy Inc. to joint invest in the nuclear facility expansion. CPS Energy and NRG would share in the expenses of the development but receive a proportionate share of the electricity produced.
“As promised, we delivered a clear message from our community to the general contractor (Toshiba Corp.) and constructor (Fluor Corp.) that we will not accept a significant cost-estimate increase to build new nuclear-fueled electrical generating units,” says CPS Energy Interim General Manager Steve Bartley. “Specifically, we explained that our customers come first and that the board will seek the most reliable and affordable solution for CPS Energy customers.”
Aurora Geis, chairwoman of the board for CPS Energy, says she and the other board members are encouraged by the willingness of the parties to work toward lowering the cost estimate. CPS Energy’s board of trustees will make a formal recommendation to City Council on whether to proceed with the nuclear power expansion after receiving Toshiba’s revised cost estimate.
“Whatever option we pursue, we believe there is great economic value in this expansion and in the existing STP project site,” Geis says. “We should protect this investment for our community.”