Constellation has completed its acquisition of NRG Energy’s 44% ownership stake in the South Texas Project Electric Generating Station, a 2645 MW nuclear power plant located 90 miles SW of Houston. The plant includes two pressurised water reactors which came online in 1988 and 1989 respectively.
Constellation expects to become one of three owners of the plant, joining Texas municipal utilities Austin Energy (16%) and CPS Energy (40%). The South Texas Project Nuclear Operating Company (STPNOC) will continue to operate the plant. However, the $1.75 purchase has faced strong opposition from Austin Energy and CPS Energy. CPS Energy has filed litigation, claiming its right of first refusal of the plant.
The municipal utilities state that they told the NRC, the US Nuclear Regulatory Commission in July that STPNOC did not have approval to submit an application to NRC related to the sale. Nevertheless the Constellation and NRG closed the transaction on 1 November.
“The ongoing legal proceeding did not prohibit NRG and Constellation from consummating the transaction, and Constellation is working with all parties to reach a resolution to the matter,” stated Constellation Energy in a 1 November Securities and Exchange Commission filing.
Image: The South Texas Project nuclear power plant