NRG Executive Says Nuclear Loan Guarantee Decision Expected By 4Q
Dow Jones & Company, Inc. - Jun 4
>
> NRG Energy Inc.'s (NRG) top nuclear executive said Thursday that
> the company expects a decision on loan guarantees from the federal
> government by the fourth quarter.
>
> "We feel pretty good that we can lock down our debt source of
> funding this year," said Steven Winn, chief executive of Nuclear
> Innovation North America, a joint venture between NRG and Toshiba
> Corp. (6502.TO).
> Winn was
> speaking at Macquarie Capital Global Infrastructure Conference in New
> York.
>
> NRG's plan for two new reactors at its South Texas project near
> the Gulf of Mexico coast is among four projects in late-stage
> negotiations with the U.S. Department of Energy for $18.5 billion in
> nuclear loan guarantees.
> Under the loan-guarantee program, the government promises to assume
> the companies' debt obligations if they default on loans for the
> nuclear projects.
>
> Because nuclear power plants cost billions of dollars to build,
> only two projects are likely to win federal loan guarantees unless
> funding for the program is increased.
>
> NRG is also likely to get a loan guarantee from the Japanese
> government because the company plans to use Toshiba reactors, Winn
> said. NRG intends to finance the project, which it expects to cost
> about $10 billion, with 80% debt - 50% guaranteed by the U.S.
> government and 30% by the Japanese government - and 20% equity. CPS
> Energy, the city of San Antonio's municipal power company, will own an
> equity stake, and NRG will announce another equity stakeholder later
> in the year, Winn said.
>
> Winn also reiterated NRG's plans to build up to three new nuclear
> power plants. The company could announce a site for a potential second
> nuclear project before the end of the year, he said.
>
> -By Christine Buurma, Dow Jones Newswires; 201-938-2061;
> christine.buurma@ dowjones.com
>
>
> NRG Energy Inc.'s (NRG) top nuclear executive said Thursday that
> the company expects a decision on loan guarantees from the federal
> government by the fourth quarter.
>
> "We feel pretty good that we can lock down our debt source of
> funding this year," said Steven Winn, chief executive of Nuclear
> Innovation North America, a joint venture between NRG and Toshiba
> Corp. (6502.TO).
> Winn was
> speaking at Macquarie Capital Global Infrastructure Conference in New
> York.
>
> NRG's plan for two new reactors at its South Texas project near
> the Gulf of Mexico coast is among four projects in late-stage
> negotiations with the U.S. Department of Energy for $18.5 billion in
> nuclear loan guarantees.
> Under the loan-guarantee program, the government promises to assume
> the companies' debt obligations if they default on loans for the
> nuclear projects.
>
> Because nuclear power plants cost billions of dollars to build,
> only two projects are likely to win federal loan guarantees unless
> funding for the program is increased.
>
> NRG is also likely to get a loan guarantee from the Japanese
> government because the company plans to use Toshiba reactors, Winn
> said. NRG intends to finance the project, which it expects to cost
> about $10 billion, with 80% debt - 50% guaranteed by the U.S.
> government and 30% by the Japanese government - and 20% equity. CPS
> Energy, the city of San Antonio's municipal power company, will own an
> equity stake, and NRG will announce another equity stakeholder later
> in the year, Winn said.
>
> Winn also reiterated NRG's plans to build up to three new nuclear
> power plants. The company could announce a site for a potential second
> nuclear project before the end of the year, he said.
>
> -By Christine Buurma, Dow Jones Newswires; 201-938-2061;
> christine.buurma@ dowjones.com
>