DALLAS, Aug. 31 /PRNewswire-FirstCall/ -- To help meet Texas' need for
power beginning in the latter part of the next decade, TXU Corp. (NYSE:
TXU) announced today that it plans to develop applications to file with the
U.S. Nuclear Regulatory Commission (NRC) for combined Construction and
Operating Licenses (COLs) for two to six gigawatts (GW) of new
nuclear-fueled power generation capacity at one to three sites. TXU expects
to submit the COL applications in 2008, which would facilitate bringing the
new capacity on line between 2015 and 2020. Combined with its previously
announced 9.1 GW of coal power generation capacity that is expected to be
on line by 2010, the nuclear power generation capacity would allow TXU to
continue to deliver the dependable energy supply, low prices and cleaner
environment its Texas consumers demand.
"While new nuclear generation cannot come on line in time to meet the
growing power needs of Texas for the next 10 years, TXU continues to aspire
to be a leader in the commercialization of the next generation of low-cost,
clean technology," said C. John Wilder, TXU Corp. chairman and CEO.
"Nuclear generation offers the potential to deliver our customers lower,
stable prices and continue to reduce Texas' over-reliance on natural gas.
Based on top decile performance at our Comanche Peak nuclear power facility
and strong knowledge of the Texas market and customers, TXU is uniquely
positioned to commercialize this technology in Texas." TXU Power's Comanche
Peak is an industry leader in nuclear operations and is a recipient of the
"Clean Texas, Cleaner World - National Leader Award" from the Texas
Commission on Environmental Quality and the U.S. Environmental Protection
Agency for its efforts above and beyond compliance in environmental
excellence and overall environmental stewardship.
TXU plans to partner with others to take full advantage of the benefits
of scale while sharing the risk of such large investments with long-term
investors. TXU has had preliminary discussions with the Lower Colorado
River Authority and the City of San Antonio's CPS Energy, and will also
invite other electric cooperatives and municipalities to partner in the
plan.
TXU's recently announced 9.1 GW of new coal-fueled power generation
capacity is needed to meet near-term demand. By 2013 further demand growth
is expected to absorb the proposed new coal-fueled capacity and reserve
margins could again approach levels the Electric Reliability Council of
Texas considers insufficient to maintain reliability. This growth and
Texas' heavy reliance on natural gas make nuclear power a logical long-term
solution. The proposed new nuclear units could give Texas consumers the
added fuel diversity necessary for a low-cost, efficient supply of safe,
reliable power. In addition, nuclear power is the lowest emission source of
baseload power generation available.
TXU's plan includes using its existing asset base where possible to
bring on the new capacity, including adding over two GW of new capacity at
its Comanche Peak nuclear facility. The combination of geology, hydrology,
property and community support make it an ideal site for expansion. TXU is
reviewing its inventory of sites that were identified for nuclear power
development over the last 30 years along with potential new sites in Texas
and in other states.
TXU is currently working with GE, Westinghouse, AREVA and other nuclear
suppliers to select a preferred technology incorporating the newest designs
and safety features. The new generation of reactors employs advanced and
passive safety systems that further enhance already safe existing plants.
In addition, they are designed for quick and efficient refueling outages to
provide maximum production of low-cost power for customers.
Today, nuclear power generation capital costs are not competitive with
other technologies. However, TXU believes there is a strong opportunity for
improvement. The same project management, lean design, and global supply
chain expertise that is helping to drive at least 30 percent improvement in
the TXU coal power generation development program versus industry
benchmarks should translate to the nuclear power generation development as
well. TXU intends to employ a technical and economic feasibility process
with nuclear original equipment manufacturers (OEMs) to design the optimal
solution for Texas consumers. TXU's objective is to design and construct a
safe and reliable generation facility, while driving down capital costs by
30 to 40 percent from average public industry estimates of approximately
$2,100 per kW. TXU will also look to partner with suppliers to share some
of the risks and rewards of the program. After a complete examination and
optimization of each design, TXU will select its final design.
"TXU recognizes that industry leadership requires excellence across a
portfolio of technologies," said Wilder. "The option to deliver our
customers the most efficient power across both coal- and nuclear-fueled
power generation moves us one step closer to this goal."
By filing for a COL before December 31, 2008, TXU expects to
participate in nuclear production tax credits, nuclear risk insurance and
federal loan guarantees specified in the 2005 Energy Policy Act. Such
credits available to the industry are estimated to total $6 billion and
would be allocated among qualifying facilities. The estimated costs of
preparing and filing COLs for up to six GW are estimated to be $50 million
to $150 million.
Additional details will be provided periodically. Table 1 shows the
current high-level milestones.
Table 1: High-level milestones
06E-11E
# Milestone Date
1 Kickoff technical and economic feasibility
process with nuclear OEMs Q3 06
2 Enlist partners for Texas nuclear consortium On-going
3 Select design technology for COL application Q4 06
4 Identify potential sites Q4 06
5 File COL applications with NRC Q4 08
6 Receive first approved COLs from NRC 2010-2011
As previously announced, on Wednesday, September 6, 2006, C. John
Wilder, chairman and CEO of TXU Corp., will speak with investors and
financial analysts at the Lehman Brothers CEO Energy/Power Conference in
New York. The presentation is expected to start at 7:45 a.m. (Eastern), and
will include a discussion of the company's business strategy and power
generation development program. A live web cast of the presentation will be
available on TXU Corp.'s website at http://www.txucorp.com in the Investor
Resources section.
TXU Corp., a Dallas-based energy company, manages a portfolio of
competitive and regulated energy businesses primarily in Texas. In the
competitive TXU Energy Holdings segment (comprised of electricity
generation, wholesale marketing and retailing), TXU Energy provides
electricity and related services to more than 2.2 million competitive
electricity customers in Texas, more customers than any other retail
electric provider in the state. TXU Power has over 18,300 megawatts of
generation in Texas, including 2,300 MW of nuclear and 5,837 MW of
lignite/coal-fired generation capacity. TXU Wholesale optimizes the
purchases and sales of energy for TXU Energy and TXU Power and provides
related services to other market participants. TXU Wholesale and its
affiliate, TXU Renew, are the largest purchasers of wind- generated
electricity in Texas and fifth largest in the United States. TXU Corp.'s
regulated segment, TXU Electric Delivery, is an electric distribution and
transmission business that complements the competitive operations, using
superior asset management skills to provide reliable electricity delivery
to consumers. TXU Electric Delivery operates the largest distribution and
transmission system in Texas, providing power to three million electric
delivery points over more than 100,000 miles of distribution and 14,000
miles of transmission lines. Visit http://www.txucorp.com for more
information about TXU Corp.
This release contains forward-looking statements, which are subject to
various risks and uncertainties. Discussion of risks and uncertainties that
could cause actual results to differ materially from management's current
projections, forecasts, estimates and expectations is contained in the
company's SEC filings. In addition to the risks and uncertainties set forth
in the company's SEC filings, the forward-looking statements in this
release could be affected by, among other things, the company's ability
achieve sufficient cost savings to develop nuclear facilities economically;
delays in, or failure to receive, approvals for licenses and other permits
necessary to develop and operate nuclear generation facilities; regulatory
or other impediments to construction of new nuclear generation facilities;
the ability of the company to identify partners willing to invest in new
nuclear generation; the ability of the company to raise capital necessary
to fund the construction of new nuclear generation facilities;
unavailability of appropriate disposal facilities for spent nuclear fuel;
availability of sites that provide adequate access to water and meet the
geotechnical and geological requirements for nuclear facilities; changes in
ERCOT and other competitive electricity market rules; changes in
environmental laws or regulations; changes in electric generation and
emissions control technologies that make technologies other than nuclear
more advantageous; incidents or changes in the operations of existing
nuclear generation units that affect the regulation or permitting of
nuclear generation facilities; changes in projected demand for electricity
in Texas; inability to obtain the benefits provided for new nuclear
generation by the Energy Policy Act of 2005; and changes in wholesale
electricity prices or energy commodity prices.
SOURCE TXU Corp.
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Related links:
http://www.txu.com
http://www.txucorp.com
CONTACT:
Corporate Communications: Chris Schein,
+1-214-812-5338, or Investor Relations: Tim Hogan,
+1-214-812-4641, Bill Huber, +1-214-812-2480, or Steve Oakley,
+1-214-812-2220, all of TXU Corp.
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