Austin Says, 'No, Thanks,' to Investing in New Nukes

[bananas]

http://www.austinchronicle.com/gyrobase/Issue/story?oid=oid%3A591699

FEBRUARY 15, 2008

Austin Says, 'No, Thanks,' to Investing in New Nukes
BY DANIEL MOTTOLA

New Jersey-based NRG Energy to the city of Austin: Yo, Austin, we know yous Texans need more energy, so boom! Bing! We're gonna add two new nuclear reactors down at the South Texas Project near Bay City. Whadaya say? You guys already own 16% of the thing, so how 'bout kicking in some cash like the $206 million your friend in San Antonio did and help us build this bastard?

City to NRG: Thanks for the offer, NRG, but we'll pass. You see, based on our figuring, this project looks like a shaky deal financially, not to mention (but we'll mention it anyway) that you declared bankruptcy in 2003. Given the fact that no one's built a new nuclear plant in the U.S. since, oh, around the time Frank Zappa last played here, we're pretty sure you're not going to complete this one on time and under budget. But hey, if you do manage to pull it off, give us a shout, and maybe we'll buy some energy from ya. Later!

OK, that's not quite how the exchange went, but Austin Mayor Will Wynn did in fact announce last Friday that the city would decline an offer to become an investment partner with NRG in the planned expansion of the South Texas Project, a nuclear power plant about 90 miles southwest of Houston that supplies about 29% of Austin's electricity. NRG, which bought 44% of the plant in 2005, approached Austin last December about the expansion and gave the city until March 1 to reply. San Antonio's municipal utility, CPS Energy, owns the other 40% and quickly agreed to support the expansion.

In an interview, Wynn said Austin's decision was based on an "apolitical" financial risk analysis by Austin Energy and outside consultant WorleyParsons, who concluded the project's budget as well as its permitting and construction timetable were "overly optimistic." The mayor, however, left wide open the possibility of AE buying power from STP in the future. In the meantime, Wynn explained, the community will have a say in how Austin's energy is generated as the city prepares to kick off an "unprecedented" yearlong public-participation process late this spring to "help us decide what the future fuel mix of Austin Energy should look like as the city and community grow."

<snip>

[ixion]

1. TX is a great candidate for solar, wind, geo-thermal and wave generated energy

why waste their money on nukes?