Wednesday, November 18, 2009

CPS Energy sends team to Japan to negotiate cut in nuclear power costs

From the San Antonio Business Journal:
CPS Energy CEO Milton Lee and Interim General Manager Steve Bartley are heading to Japan on Tuesday to square off behind closed door meetings with Toshiba Corp. officials to discuss why the cost projection on two new nuclear reactors are higher than expected. Toshiba Power Systems is the lead contractor for the proposed expansion of the South Texas Project nuclear power plant in Matagorda County, Texas. There have been reports indicating that the price tag could be as much as $4 billion higher than originally projected. CPS Energy’s partner in the South Texas Project expansion, NRG Energy, will also be involved with discussions. CPS Energy will press the Japanese for a pricing structure on the two new reactors that is more affordable than the current cost projection. CPS Energy wants the cost of the nuclear reactors to have no more than a 5 percent impact on customer bills, Bartley says.
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