Next step taken to add two more reactors to Bay City plant

STP Photo Two More The South Texas Project, shown here, will double if a license application with the Nuclear Regulatory Commission is approved. Two more units, which were called for in the original plans for the facility near Bay City, would provide enough power for two million homes, and create 800 new operators' jobs at the plant.

PRINCETON, NJ - NRG Energy, Inc. and South Texas Project Nuclear Operating Company filed a Combined Construction and Operating License Application Monday with the Nuclear Regulatory Commission to build and operate two new nuclear units at the South Texas Project nuclear power station site.

The total rated capacity of the new units, STP 3 and 4, will equal or exceed 2,700 megawatts - enough to power more than two million homes. NRG expects to bring the units on line in 2014 and 2015 in order to provide reliable and affordable power to fuel Texas' continued growth and economic prosperity.

"It is a new day for energy in America. Advanced technology nuclear power plants like STP 3 and 4, generating a vast amount of electricity cleanly, safely and reliably, will make an enormous contribution toward the greater energy security of the United States," said David Crane, NRG's President and Chief Executive Officer.

"But equally, this announcement heralds a new day for the environment. Advanced nuclear technology is the only currently viable large-scale alternative to traditional coalfueled generation to produce none of the traditional air emissions - and most importantly in this age of climate change - no carbon dioxide or other greenhouse gases."

This license submittal continues NRG's leadership role in moving U.S. electrical generation to new, cost-effective baseload power that does not contribute to global climate change and is the first license application submitted to the NRC for a new nuclear plant in 29 years.

STP 3 and 4 are being developed as part of the Company's RepoweringNRG initiative 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 foreign energy dependence, and implement technologies that reduce NRG's carbon intensity.

The South Texas Project Nuclear Operating Company, which currently operates units 1 and 2, will operate the new units as well.

The U.S. Department of Energy projects that the United States will need 40 percent more electricity by 2030.

According to the Electric Reliability Council of Texas (ERCOT), energy needs in Texas alone will grow by 10,000 MWs by 2014. STP 3 and 4 will help meet this growing demand without increasing U.S. dependence on foreign sources of oil. These new units also will help reduce reactors to Bay City demands on domestic supplies

of natural gas, on which Texas currently depends on for most of its power generation requirements.

The STP site in Matagorda County is considered to be one of the best sites in America for nuclear expansion. The 12,220-acre site and 7,000- acre cooling reservoir were originally designed for four units. The two new units will be built adjacent to the currently operating STP units 1 and 2.

"We are very pleased to be a part of this milestone application for the first new nuclear plant in decades," said Nate McDonald, Matagorda County Judge. "The South Texas Project has an outstanding record of safety and excellent performance and is a good neighbor in our community. We welcome this expansion to Matagorda County."

In June 2006, NRG filed its letter of intent to submit an application with the Nuclear Regulatory Commission to construct STP units 3 and 4. STPNOC, together with a contracting team successfully led by GE-Hitachi Nuclear Energy (GE-H) and Bechtel, has prepared the COLA for STP units 3 and 4 in just over one year for submittal to the NRC.

With the COLA submitted, the NRC begins an estimated two-month acceptance review process. It is then anticipated that the NRC could take up to 42 months for its detailed review process including staff discovery, site visits, company responses, hearings and NRC Environmental Impact Statements.

Assuming this schedule, NRG would hope to receive its license approval and begin construction in 2010. With this time frame, STP unit 3 should come on line in 2014 and unit 4 in 2015.

The multibillion dollar investment is expected to generate more than $9 billion of economic benefit principally in the South Texas area, require 4,000 to 6,000 construction workers, and result in about 800 new operating staff positions at the plant.