Spending Cut on Nuclear Project

NRG Energy Inc. has reduced its spending by nearly 65 percent this year on two nuclear reactors planned at an existing power plant in Texas while awaiting a decision on a federal loan guarantee for the multibillion-dollar project.

The Princeton, N.J.-based power producer plans to reduce monthly spending on the project to US$1.5 million a month, down from $7.5 million in July.

Total capital spending on the project for the year is being slashed from US$302 million to US$186 million.

NRG, Constellation Energy Group and Scana Corp. are vying for the one remaining loan guarantee available from the U.S. Department of Energy, which earlier this year awarded Southern Co. a US$8 billion guarantee for its power plant project near Waynesboro, Ga.

Constellation Energy announced last week plans to reduce spending on a new reactor for its plant in Maryland. Company officials said the project could be completely shut down by the end of the year if it does not receive the federal guarantee.

Despite the radical cuts, an NRG executive said the project should remain on schedule through 2010. Toshiba Corp. is NRG’s partner on the power plant expansion and will take on a greater portion of the development costs.