WILMINGTON, N.C.--(BUSINESS WIRE)--Entergy Nuclear (NYSE: ETR), the nation's second largest nuclear operating company, has signed a project development agreement with GE-Hitachi Nuclear Energy (GEH) (NYSE: GE) that includes a major, advanced reactor components order. Proceeding with the order now will ensure timely delivery of schedule-critical parts should Entergy decide to build a new nuclear unit.
Entergy Nuclear, through NuStart Energy Development LLC, is on target to submit a combined construction and operating license application for its Grand Gulf nuclear site in Mississippi by the end of 2007. Entergy Nuclear is also targeting a mid-2008 submittal of a combined construction and operating license application for its River Bend site in Louisiana.
While Entergy has not yet made a decision to build a nuclear unit, the company is moving forward systematically to position itself so that the option for a new nuclear unit remains available in the 2017 time frame.
The utility is currently examining its customers' future energy requirements and other important factors, such as the related costs of new nuclear construction and the projected costs of alternative sources of base load generation, which are important factors in determining whether or not to proceed with a new nuclear plant.
The two potential sites for a new plant each has a GEH-designed reactor currently operated by Entergy Nuclear. The Grand Gulf Nuclear Station, located in Port Gibson, about 25 miles south of Vicksburg, Miss., has a 1,266-megawatt boiling water reactor that entered service in 1985. The River Bend Station in St. Francisville, northwest of Baton Rouge, Louisiana's capital city, has a 978-megawatt boiling water reactor that began commercial operation in 1986.
With a growing number of global utilities deciding to build new reactors, the supply of important plant components is expected to tighten in the coming years. By ordering the components from GEH now, Entergy is positioning itself to be able to build a new ESBWR, in time to start commercial operation in the 2017 time frame.
"This significant components order ensures GEH and Entergy will be able to build an ESBWR project on schedule if Entergy formally decides to build a new unit," said Andy White, president and chief executive officer of GE-Hitachi Nuclear Energy. "We share a long history of working with Entergy and look forward to an expanded relationship that may include new unit construction."
Said Entergy Chief Nuclear Officer Michael Kansler, "Signing the project development agreement and long-lead equipment orders with GEH demonstrates our clear commitment to planning for the future energy needs of our customers while reflecting the methodical, step-by-step approach we are taking so that a decision to build a new nuclear power plant would clearly be a sound business decision for our customers and our shareholders."
The order for Entergy Nuclear includes large forgings as well as fabrication of several schedule-critical nuclear and turbine components required for the ESBWR design. Several U.S. GE businesses and a diverse network of global supply chain partners will perform the work.
Terms of the project development agreement and the order are confidential.
Entergy Nuclear is a charter member of NuStart Energy Development LLC (www.nustartenergy.com), a U.S. Department of Energy-backed consortium of nuclear utilities and suppliers that includes GE. The NuStart consortium was organized to complete engineering work on next-generation reactor designs and to test the Nuclear Regulatory Commission's new streamlined combined construction and operating license application regulations. In 2005, NuStart selected Grand Gulf as the site of a potential ESBWR. NuStart's efforts are cost-shared as part of DOE's Nuclear Power 2010 program. (http://www.doe.gov/energysources/nuclear.htm)
About Entergy
Entergy Corporation (www.entergy.com) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.6 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of more than $10 billion and approximately 14,500 employees.
About GE-Hitachi Nuclear Energy
Based in Wilmington, North Carolina, GE-Hitachi Nuclear Energy (GEH) is a world-leading provider of advanced reactors, nuclear fuel and reactor services.
GEH, established in June 2007, is a nuclear alliance comprised of GE and Hitachi, built to serve the global nuclear industry. Through the new nuclear alliance, GE and Hitachi will execute a single, strategic vision to create a broader portfolio of solutions, expanding its capabilities for new reactor and service opportunities. The alliance will offer customers around the world the technological leadership required to effectively enhance reactor performance, power output and safety.
Contacts GE-Hitachi Nuclear Energy
Claire Zurek, 910-675-5034
[email protected]
or
Entergy Nuclear
Diane Park, 601-368-5655
[email protected]
or
Masto Public Relations
Tom Murnane, 518-786-6488
[email protected]
or
Howard Masto, 518-786-6488
[email protected]
Britta Kons
GE Healthcare Global Services
[email protected]
1-203-400-1892