NRC: No Environmental Risks From Extending PSEG's NJ Nuclear Operations

The U.S. Nuclear Regulatory Commission has determined that keeping the second-largest U.S. nuclear-power generating facility, located in southern New Jersey, open for an additional 20 years wouldn't pose an environmental risk.

The NRC's staff issued a report Friday that found no environmental deficiencies that would prevent the agency from renewing the operating licenses for three reactors operated--and mostly owned--by Public Service Enterprise Group Inc. (PEG). The licenses for the two reactors called Salem Units 1 and 2 expire in 2016 and 2020 while the Hope Creek reactor license expires in 2026.

The NRC's staff findings are "a significant milestones in the license renewal process," said PSEG spokesman Joseph Delmar. PSEG had submitted its applications in August 2009.

While the environmental approval is critical for the license-renewal process, a separate staff safety review must be completed before the agency can begin hearings. Safety concerns about the 104 reactors across the U.S. have surged in recent weeks after a magnitude-9.0 earthquake and resulting tsunami triggered a nuclear crisis in Japan. Unprecedented natural disasters wiped out back-up power systems at Tokyo Electric Power Co.'s (9501.TO) Fukushima Daiichi facility, raising fears of a meltdown and radiation contamination.

"As the events in Japan continue to unfold, we anticipate additional questions may be raised," PSEG's Delmar said. He noted that the NRC license-review process includes a number of onsite visits and interviews with personnel as well as insight from elected officials, environmental groups and community leaders.

While the U.S. government has ordered a comprehensive safety review of the nation's nuclear plants, the Obama Administration said the country continues to support nuclear power and development.

New Jersey gets 55% of its electricity from nuclear power. Three of the state's four reactors are located on the PSEG complex, which is about 18 miles south of Wilmington, Del. PSEG owns 57% of the Salem units and the rest is owned by Exelon Corp. (EXC), which is the nation's largest nuclear-power generator.

In recent weeks, the NRC renewed the operating license for Entergy Corp.'s (ETR) Vermont nuclear plant and said Southern Co.'s (SO) proposal to build two reactors in Georgia wouldn't pose environmental risks.

-By Naureen S. Malik, Dow Jones Newswires; 212-416-4210; naureen.malik@dowjones.com

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