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South Texas Project 3 & 4 Expansion POWERING TEXAS WITH NRG

NRG Texas is planning an expansion of the existing South Texas Project (STP), a nuclear facility located near Bay City, Texas in Matagorda County. An investment in the future of Texas, the two proposed units will produce an additional 2,660 megawatts of base load electricity for the region—enough to supply approximately 2.1 million households in San Antonio, Austin, Houston, Corpus Christi and surrounding areas in south central Texas—more than doubling the current capacity of the facility.

The proposed expansion will help meet Texas’ growing energy needs through increased safe, reliable and cost-efficient base load electrical generation capacity and reduce the state’s dependence on fuel sources—such as natural gas—that are susceptible to price volatility. The additional two units will also help protect Texas air quality by providing clean energy without producing the emissions that contribute to global warming.

STP’s site is designed to accommodate four units and the proposed expansion will fulfill the potential of the location. Units 3 and 4 will be constructed adjacent to the existing units 1 and 2 and will utilize the Advanced Boiling Water Reactor (ABWR) design. ABWR technology reflects 50 years of continued evolution in design combining the best features from the worldwide Boiling Water Reactor fleet with advance technology enhancements that improve safety, performance and longevity. It is the most advanced nuclear technology in operation in the world today with a track record of reliable and safe operation and a history of on time, on budget construction. Four units are currently in operation in Japan with another three under construction and nine more planned.

Construction of the two new units will last approximately six years, employ 4,000 to 6,000 construction workers, and cost more than $6 billion. STP’s proposed expansion project will bring training and educational opportunities, construction and permanent jobs, and economic growth to Matagorda County.

STP is one of the newest and most productive nuclear power plants in the U.S. STP’s two existing pressurized water reactors generate nearly 2,600 megawatts of electricity.

The facility began commercial operations in 1988, operates 365 days a year and is the largest employer in Matagorda County. STP is owned by NRG Texas (44%), San Antonio’s CPS Energy (40%) and Austin Energy (16%). The plant is managed by the STP Nuclear Operating Company and employs approximately 1,300 full-time personnel, including contractors.

STP has won numerous awards including six Top Industry Practice awards, the American Nuclear Society's Utility Achievement Award and two Best of the Best awards, the industry’s highest honor. STP’s top performance has enabled it to generate more electricity since 2004 than any other two-unit plant in the nation.

STP is located on a 12,220-acre site in Matagorda County, between Bay City and Palacios. This large plant site encompasses an unusually wide range of habitats for birds and other wildlife. More than 225 bird species, including several on the threatened and endangered lists, visit or nest here. Rare or uncommon birds seen near the plant include bald eagles, peregrine falcons, white-tailed hawks and white-faced ibis. STP created a 110-acre
wetlands habitat for migratory waterfowl, near the plant’s entrance and has set aside a large tract of native prairie grass, one of only a few remaining on the Gulf Coast, as a source of seed to recreate the nearly extinct vegetation.

The surrounding community is expected to see a notable increase in construction jobs over a period of several years and training and educational opportunities, permanent jobs and economic growth to Matagorda County and the state of Texas over the life of the facility. Each unit will create more than 2,000 construction jobs during the peak construction period. Once both units are online, approximately 800 new operating staff positions will be employed by the plant.

Based on the June 2006 Texas and Matagorda County Economic Impact study prepared for NRG by The Perryman Group, the new nuclear units are expected to create more than $9 billion of economic activity for the state and result in more than 5,500 new permanent jobs statewide.

Nuclear power can help ease America’s dependence on foreign fuels and help preserve our nation’s natural resources. Using uranium pellets instead of traditional fuel to generate electricity for our homes, business and industries, the two new units at STP will annually save the nation from using 33.6 million barrels of oil, 9.8 million tons of coal (which would fill 98,000 railroad cars), or 215.6 billion cubic feet of natural gas (that would fill approximately 3,000 domed stadiums) a year.

As nuclear power does not emit carbon dioxide, STP will prevent 15.8 million tons of this greenhouse gas from being emitted into the atmosphere. STP will also prevent approximately 38.8 thousand tons of sulfur dioxide and 10.7 thousand tons of nitrogen oxide from entering the atmosphere each year when compared with traditional fossil-fueled plants (based on 21 million megawatt hours production).