Toshiba, NRG Energy and CPS Energy Sign EPC Agreement for Two ABWR Nuclear Plants

• Toshiba to Construct First ABWR Nuclear Power Plants in the U. S.
• Commercial Operation to Begin in 2016

TOKYO--(BUSINESS WIRE)--Toshiba Corporation (TOKYO:6502) today announced that Toshiba America Nuclear Energy Corporation, a US based Toshiba subsidiary, has signed an Engineering, Procurement and Construction (EPC) agreement with STP Nuclear Operating Company (STPNOC) for the delivery of two Advanced Boiling Water Reactor (ABWR) nuclear power plants at the South Texas Project (STP) units 3 and 4 in Texas.

“We are very pleased to take our involvement in the STP units 3 and 4 projects to the next level”

STPNOC, a non-profit operating company acting as agent for Nuclear Innovation North America LLC (NINA) and CPS Energy, is a plant management company responsible for management of the overall South Texas Project. NINA is the ABWR nuclear development company jointly owned by NRG Energy, Inc. (NYSE:NRG) and Toshiba Corporation. CPS Energy, the largest municipal electric and gas utility in the U.S., is owned and operated by the city of San Antonio, Texas. The South Texas Project consists of two existing reactors owned by CPS Energy, NRG Energy and Austin Energy in addition to the two planned ABWRs to be constructed at the Site.

The plants, the first ABWR constructed in the United States, will have an output of approximately 1,400 megawatts each, and are scheduled to start operation at units 3 and 4 in 2016 and 2017, respectively.

Westinghouse Electric Company is also expected to participate in the STP 3 & 4 projects.

In March 2008, NRG Energy and CPS Energy selected Toshiba as prime contractor for the development of the projects, and Toshiba has been responsible for all engineering work prior to the start of plant construction, for procurement of major equipment and components, and for supporting the licensing process.

“We are very pleased to take our involvement in the STP units 3 and 4 projects to the next level,” said Mr. Yasuharu Igarashi, Corporate Vice President, and President and CEO of Toshiba’s Power Systems Company. “We look forward to working closely with STPNOC through our US subsidiary, and to establishing the ABWR as a key power generation option in the U.S. We are confident that expertise in ABWR plant construction and project management cultivated in Japan will allow us to meet STPNOC’s requirements. Toshiba group, including Westinghouse Electric Company, will continue to promote the nuclear power business and its capabilities, not least its CO2-free emissions, and to support potential customers worldwide.”