TXU to develop 2-6 GW of new nuclear generation by 2020

TXU to develop 2-6 GW of new nuclear generation by 2020

Washington (Platts)--31Aug2006

TXU Thursday said it plans to file applications with the US Nuclear
Regulatory Commission for combined construction and operating licenses for
between 2,000 and 6,000 MW of new nuclear generating capacity in Texas.

The new plants -- if TXU ultimately decides to build them -- would be
located at one to three sites, and would begin commercial operation between
2015 and 2020, TXU said.

The company's nuclear announcement is part of a broader plan by
Dallas-based TXU to develop new baseload capacity that uses lower-cost fuels
such as uranium and coal to generate electricity in wholesale markets now
dominated by natural gas-fired generation.

TXU previously unveiled plans to develop more than 9,000 MW of new coal-
and lignite-fired capacity in Texas, and is in they early stages of developing
as much as 5,000 MW of new coal-fired capacity in PJM.

"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 Chairman
and CEO John Wilder said in a statement.

TXU's nuclear plan includes using its existing asset base where possible
to bring on the new capacity, including adding more than 2,000 MW of capacity
at its Comanche Peak nuclear plant site. "The combination of geology,
hydrology, property and community support make it an ideal site for
expansion," the company said, adding that 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, it said.

--Housley Carr, newsdesk@platts.com

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