NRG to Cease Funding New South Texas Nuclear Project

Citing the "diminished prospects for the South Texas Project nuclear development project as a result of the ongoing nuclear incident in Japan," NRG Energy, Inc. said yesterday that it will not invest additional capital in the STP development effort.

"[E]xtraordinary challenges facing U.S. nuclear development in the present circumstance and the very considerable financial resources expended by NRG on the project over the past five years make it impossible for us to justify to our shareholders any further financial participation in the development of the STP project," said David Crane, President and CEO of NRG.

NRG expects to record a first-quarter 2011 pretax charge of approximately $481 million, for the impairment of all of the net assets of Nuclear Innovation North America (NINA), the company's nuclear development joint venture with Toshiba American Nuclear Energy Corp. (TANE).

NINA, going forward, will be focused solely on securing a combined operating license from the NRC and on obtaining a loan guarantee from the U.S. Department of Energy. TANE will be responsible for funding ongoing costs to continue the licensing process.