NRC postpones public comments on STP units

From staff reports
Bay City Tribune

Published February 18, 2008

Austin City Council voted Thursday not to participate in the ownership of new nuclear generating units 3 and 4 at the South Texas Project.

And, in another STP-related development last week, the Nuclear Regulatory Commission (NRC) indefinitely postponed the public comment period on NRG Energy Inc.'s application for the new units. New Jersey-based NRG owns 44 percent of STP.

Austin council's decision not to join came after Austin Energy, the City of Austin's community-owned electric utility, recommended against the city's participation earlier in the week.

Austin Energy contended the new reactors' projected cost and their permitting and construction schedules were overly optimistic and include an unacceptable degree of uncertainty and risk.

The comment period, was set to expire Feb. 25, at which point a public hearing would be scheduled. The move gives those opponents of the new reactors more time to present their case.

Austin and San Antonio's CPS Energy are partners with NRG in STP units 1 and 2, with CPS owning 40 percent and Austin, 16 percent. NRG asked both entities to participate in the ownership of the two new units, with CPS Energy indicating it will join NRG in building the new reactors.

The application to add units 3 and 4 was filed last fall by NRG and CPS Energy, San Antonio's city-owned utility.

NRG told federal regulators in January that cost negotiations continued with its reactor vendors, which would make it difficult for the company to respond to specific design questions the government has about the application.

Until certain points are settled, NRG said it cannot complete some parts of the application process, and it asked the agency to wait to review those parts.

The commission agreed to continue reviewing bits of the application that NRG has settled, such as the South Texas site for the new reactors. But on Wednesday, the commission withdrew its notice for a public hearing, which extends the period for people to request a hearing.

"This gives us a chance to study the application, to really dig in and find and hire experts," said Karen Hadden, executive director of the Sustainable Energy and Economic Development Coalition.

"We want to examine the application and look at health and safety issues, water use, everything."

Activists had faced a Feb. 25 deadline to comment on the new units. Anti-nuclear activists told NRC members at a Feb. 5 hearing in Bay City that the deadline didn't give them enough time to study the application.

NRG spokesman Dave Knox declined to say what NRG is discussing with vendors.

The company has a deal to use Toshiba technology, but the reactors - expected to generate enough power for more than 2 million homes - could draw on parts from various vendors.

"You're going to have some discussions that go on longer and some that don't," Knox said.

He said it's not clear whether halting parts of the review process might delay the entire project, scheduled to be completed in 2014 or 2015. Any delay in the project would be minimal, Knox added.

A key CPS official said Wednesday that the NRC's decision "is good in a way.

"We can make good use of that time," said Mike Kotara, executive vice president of energy development. "This will allow more time for public input, and we will have more Austin City Council voted Thursday not to participate in the ownership of new nuclear generating units 3 and 4 at the South Texas Project.

And, in another STP-related development last week, the Nuclear Regulatory Commission (NRC) indefinitely postponed the public comment period on NRG Energy Inc.'s application for the new units. New Jersey-based NRG owns 44 percent of STP.

Austin council's decision not to join came after Austin Energy, the City of Austin's community-owned electric utility, recommended against the city's participation earlier in the week.

Austin Energy contended the new reactors' projected cost and their permitting and construction schedules were overly optimistic and include an unacceptable degree of uncertainty and risk.

The comment period, was set to expire Feb. 25, at which point a public hearing would be scheduled. The move gives those opponents of the new reactors more time to present their case.

Austin and San Antonio's CPS Energy are partners with NRG in STP units 1 and 2, with CPS owning 40 percent and Austin, 16 percent. NRG asked both entities to participate in the ownership of the two new units, with CPS Energy indicating it will join NRG in building the new reactors.

The application to add units 3 and 4 was filed last fall by NRG and CPS Energy, San Antonio's city-owned utility.

NRG told federal regulators in January that cost negotiations continued with its reactor vendors, which would make it difficult for the company to respond to specific design questions the government has about the application.

Until certain points are settled, NRG said it cannot complete some parts of the application process, and it asked the agency to wait to review those parts.

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