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CPS Energy announced a settlement with Nuclear Innovation North America over a lawsuit the South Texas Nuclear Project. Texas Public Radio’s David Martin Davies has the story.
February 18, 2010 · CPS Energy and Nuclear Innovation North America used to be partners in the proposed expansion of the South Texas Nuclear Project.
But when CPS was caught misleading the public and the city council about the cost of that expansion, CPS had to back out. That sent the two partners into litigation.
CPS Energy Acting General Manager Jelynne LeBlanc-Burley said the settlement ends the costly legal wrangling, protects CPS’s investment and provides CPS with 7.6 percent ownership of the two new reactors.
“Effective January 31, we will cease to invest in this project and so, as you can see from this deal we are getting value for the investment made to date. And we are getting value for the site, our water rights and our land rights that we’ve invested in STP. So I’m very pleased,” said Burley.
“Our stake in this project will equal about 200-megawatts of energy. And so that’s a third of our requirements going forward,” she said.
Mayor Julian Castro praised the settlement and said it was the good outcome for the city and the energy company.
“This is very important, that ownership interest is fixed regardless of the ultimate cost of the project. Meaning we have eliminated all risks of cost overruns to San Antonio ratepayers,” said Castro adding, “In fact, San Antonio will see a return on its investment of upwards of a billion dollars in value.”
In a written statement, Public Citizen Texas also trumpeted the settlement, saying it is a victory for ratepayers. They applaud CPS for “wisely seeing the futility of wasting more time and energy on this flawed nuclear endeavor.”
Burley said the settlement has no impact on the proposed CPS rate increase that goes to the city council later today.
“No, it does not. We’ve said to the council in all of our revenue presentations and all of our rate design presentations – the cost for STP 3 and 4 was not included. And today we can confirm that and with confidence this settlement is representative of that – that there are no costs for STP for this proposal for a rate increase,” said Burley.
The proposed settlement will have to be voted on at the next meeting of the CPS Energy Board. |
