Entergy Temporarily Suspends Reactor License Applications

[Verbatim statement from Entergy] Jackson, Miss. – Entergy New Nuclear Utility Development, commonly referred to as Entergy Nuclear, is temporarily suspending reviews of two new nuclear license applications and will explore alternative nuclear technologies that better serve its customers, company officials announced today. The company asked the Nuclear Regulatory Commission on Friday to suspend reviews specific to GE Hitachi’s Economic Simplified Boiling Water Reactor after unsuccessful attempts to come to mutually acceptable business terms with GEH. Entergy Nuclear also will temporarily defer environmental reviews related to the construction and operating license applications for potential projects at its nuclear sites at Grand Gulf, near Port Gibson, Miss., and River Bend, near St. Francisville, La.

Entergy Nuclear will continue to explore other new nuclear technologies as Entergy’s utility operating companies seek solutions for meeting the region''s growing energy demands. Though work has been suspended on the ESBWR, licensing work completed to date will be used for any alternative technology selected.

“We continue to see value in developing the nuclear option, and the temporary suspension of the license application review effort does not reflect a change in position regarding new nuclear’s potential value,” said Paul Hinnenkamp, vice president of Entergy Nuclear’s business development function.

“The suspension of Entergy Nuclear’s applications referencing the ESBWR is not a criticism of that design. Rather, this action simply reflects the fact that we have not been able to come to mutually agreeable terms and conditions with GEH for the potential deployment of an ESBWR,” Hinnenkamp said. “We will continue to explore alternatives as we maintain our pursuit of a new nuclear option that is in our customers’ best interests.”

In 2008, Entergy Nuclear filed two applications to build and operate potential new reactors at existing nuclear sites at Grand Gulf and River Bend. Both applications referenced the ESBWR technology, one of several reactor designs undergoing certification by the NRC. All of the dozens of new nuclear applications across the country reference either a previously certified design or one that is currently under review for certification.

“The licensing efforts completed to date will be beneficial as we pursue other alternatives, and our work will be useful with respect to other reactor designs we are evaluating,” Hinnenkamp added. “For example, we would expect to utilize the environmental reviews that have been completed to date in any subsequent application revision.”

The decision to build a new nuclear plant will be based on several factors, including an assessment of customer need for additional electricity and estimated costs of electricity as compared to costs from other fuel sources.

Although Entergy Nuclear has made no commitment to build a new nuclear plant, the company will continue to develop the new nuclear option. Nuclear is a competitive form of generation that many utility companies are pursuing to help meet baseload energy needs.

Clean-air nuclear energy is safe, proven and efficient. Other factors – such as natural gas prices, the likelihood of federal legislation that would tax carbon-emitting generation, the need for fuel supply diversity and the nation’s growing energy demands for large-scale generation – continue to point to nuclear as a strong baseload option.

Entergy New Nuclear Utility Development is a company created by Entergy to manage the development of nuclear power options in the company’s regulated service territory.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 14,300 employees.

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Entergy Nuclear’s online address is http://www.Entergy-nuclear.com

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