NRG to Write Down Two Nuclear Reactors

South Texas Nuclear PlantCompany president and CEO David Crane announced that NRG is writing off nearly half a billion dollars invested in the planned expansion of the South Texas Project, located about 90 miles southwest of Houston.

“We have concluded that financially this is the end of the line for us. Even if the project relaunches full-scale, active development, it will have to be fueled by someone else’s financial resources. NRG simply is not in a position to expend additional capital resources in pursuit of nuclear development.”

Engineering and pre-construction work on the new reactors halted after the earthquake-triggered disaster at Japan’s Fukushima Daiichi nuclear power plant. Crane says that, while he still considers STP to be the best place in the country to build new nuclear power,

“The confluence of events that would have to occur, in NRG’s view, in order to get STP 3 & 4 truly back on track is extremely daunting and at this point not particularly likely.”

The South Texas Project currently has two working reactors that supply electric power to parts of Texas.
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