NRG Energy Inc said on Tuesday that regulatory uncertainty in the United States in the wake of Japan's Fukushima nuclear accident would force the company to abandon a plan for two additional reactors in Texas and to write off its investment in the project. NRG will record a first-quarter 2011 pretax charge of about $481 million for the impairment of net assets of Nuclear Innovation North America (NINA), its nuclear development joint venture with partner Toshiba American Nuclear Energy Corp (TANE), an affiliate of Toshiba Corp.
Shortly after the March 11 earthquake and tsunami cut off power to the Fukushima station owned by Tokyo Electric Power Co, New Jersey-based NRG cut spending on the $10 billion Texas project and reduced its workforce, citing uncertainty related to a U.S. nuclear industry review and the already deteriorating economics for nuclear power in a low-priced natural gas environment.
"The extraordinary challenges facing U.S. nuclear development in the present circumstance and the very considerable financial resources expended by NRG on the project over the past five years make it impossible for us to justify to our shareholders any further financial participation in the development of the STP project," NRG Chief Executive Officer David Crane said in a statement.
NRG's decision indicates how difficult the Fukushima accident will make it for U.S. companies to participate in the global nuclear revival. The accident is expected to lead to regulatory changes that raise costs for existing reactors and for construction of new ones.
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http://www.reuters.com/article/2011/04/19/us-nuclear-nrg-idUSTRE73I7E620110419