CPS asks court to ‘clarify' nuclear pact

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CPS asks court to ‘clarify' nuclear pact
By Anton Caputo - Express-News
Web Posted: 12/07/2009 4:32 CST

CPS Energy wants a court in Bexar County to clarify the utility's rights if it chooses to pull out of the crumbling nuclear deal.

CPS filed a petition late Sunday with state District Court in Bexar County that “specifically requests defining the liability of both parties should either decide to withdraw from the project,” utility officials said in a written statement.

The filing came the night before Steve Winn, CEO of partner Nuclear Innovation North America, traveled to San Antonio to discuss the project with CPS executives. New Jersey-based NRG Energy owns most of NINA.

That meeting was canceled.

“We are perplexed by CPS' legal action, as we had come to San Antonio (on Monday) to discuss options for preserving the value of CPS' investment,” said NRG spokesman David Knox. “Over the past few weeks, we have repeatedly expressed our willingness to engage in a dialogue designed to protect that value while maintaining the forward momentum” of the planned expansion of the nuclear South Texas Project near Bay City.

“While we remain hopeful that we can reach a speedy and satisfactory outcome for all parties concerned, the fact that litigation has been initiated effectively limits our ability to communicate as partners in this important and valuable project.”

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1. Partner looks for escape strategy

Headline at World Nuclear News: "Partner looks for escape strategy"

Partner looks for escape strategy
08 December 2009

There is now serious doubt over San Antonio utility CPS Energy's commitment to expanding the South Texas Project nuclear power plant after it made legal enquiries.

After a postponed a bond issue, a warning on cost escalation, an internal investigation and the departure of its general manager, CPS Energy has now petitioned a court to rule on its obligations under an agreement to expand the plant. CPS's partner in the project is Nuclear Innovation North America, a project company set up by STP joint-owner NRG Energy and Toshiba, which hopes to sell two Advanced Boiling Water Reactors.

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