NRG Energy, Inc. posted their 2010 Full-Year and Fourth Quarter results today. It appears that if no loan guarantees are forthcoming and the company fails to secure sufficient Power Purchase Agreements (PPA) for the STP expansion project by the third quarter of this year, NRG could make a final decision to pull the project.
For this reason, Central Texas utilities like Austin Energy, LCRA, and San Marcos are going to be lobbied heavily by NRG representatives in the coming months. Click here to read our earlier post on NRG’s approach to Austin Energy.
A section directly from their 4th quarter report is excerpted below:
On November 29, 2010, NINA awarded the EPC contract for the development of STP Units 3 and 4 to a restructured EPC consortium formed by Toshiba America Nuclear Energy Corporation and The Shaw Group Inc. Shaw is providing a $100 million credit facility to NINA to assist in financing STP. The credit facility will convert to equity in NINA upon the satisfaction of certain conditions including the project receiving full notice to proceed, which is expected in mid-2012. The project is presently scheduled to come online with one unit in 2016 and the second in 2017. The project remains subject to receipt of a conditional loan guarantee from the Department of Energy and to the satisfaction of certain conditions, most notably, the arrangement of long term PPAs for a significant portion of the plant’s capacity. It is anticipated that the pace of development and pre-construction work required to meet the 2016/2017 online schedule dictates that the loan guarantee needs to be received and critical conditions satisfied in the third quarter of 2011. As a result, NRG expects to make a final decision with respect to its continued funding of STP 3&4 during the third quarter of 2011.
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