PPL to Seek License for Possible Third Nuclear Unit in Northeast Pennsylvania
December 19 2007 - 7:15AM
PR Newswire (US)
UniStar to Prepare Application Based on AREVA Reactor Design
ALLENTOWN, Pa., Dec. 19 /PRNewswire-FirstCall/ -- PPL Corporation
(NYSE:PPL) announced Wednesday (12/19) that one of its subsidiaries
will ask the U.S. Nuclear Regulatory Commission to approve a
combined license to construct and operate a new generating unit
near the Susquehanna nuclear power plant near Berwick, Pa. PPL has
contracted with an affiliate of UniStar Nuclear Energy, a joint
venture of Constellation Energy and EDF, to prepare the
application, which will be based on AREVA's U.S. Evolutionary Power
Reactor design. While PPL has not yet decided to move forward with
construction, it plans to file a license application by the end of
2008. This time frame will help preserve the potential for federal
production tax credits and federal loan guarantees. William H.
Spence, PPL's executive vice president and chief operating officer,
said a decision on whether to proceed with construction of a new
nuclear unit will depend on a number of factors. "PPL would not
undertake nuclear construction alone," Spence said. "Because of the
large capital commitment required, we would proceed with nuclear
construction only as part of some type of joint venture
arrangement." While PPL is in talks regarding possible joint
venture arrangements, Spence said, it would be premature to discuss
details of those initiatives at this time. PPL selected the UniStar
and the U.S. Evolutionary Power Reactor design for several key
reasons, according to Bryce L. Shriver, the PPL executive
overseeing development of the company's nuclear strategy. The
design is based on long-proven pressurized water reactor
technology, and it includes robust safety systems, he said.
Contracting with UniStar gives PPL the opportunity to be part of a
standardized fleet of U.S. Evolutionary Power Reactors, all sharing
the same design and operating procedures. This standardization will
enhance prospects for safe and reliable operation because it will
allow for sharing of best practices and other information across a
wide industry base. PPL does not expect the cost of the licensing
effort to impact its forecasts of earnings from ongoing operations.
The project is being developed by a PPL Corporation subsidiary, PPL
Nuclear Development, LLC, which, along with UniStar, is evaluating
preliminary tests already performed to determine suitability of the
proposed location. "A possible third nuclear unit is just one part
of PPL's comprehensive plan to grow our generation portfolio,"
Spence said. He noted that the company also is considering
acquiring or constructing coal, hydroelectric, natural gas and
renewable energy facilities. "Given the growing concerns about
global climate change and the rising need for new power plants in
the Northeast region, it makes sense for PPL to pursue a license
for a third nuclear unit -- for the benefit of electricity users in
the mid-Atlantic region and for the shareowners of PPL," Spence
said. If a third nuclear unit is built near Berwick, it would
create thousands of construction jobs and hundreds of new permanent
jobs, and would increase the contribution PPL already makes to the
economic health of the Berwick area and the surrounding region,
Spence said. PPL's two existing nuclear units, totaling 2,360
megawatts, are owned jointly by PPL Susquehanna, LLC and Allegheny
Electric Cooperative Inc., and are operated by PPL Susquehanna.
UniStar Nuclear Energy, a strategic joint venture between
Constellation Energy (NYSE:CEG) and EDF, is based in Baltimore. The
company provides the licensing, construction and operating services
needed to support the expansion of clean, safe and sustainable
nuclear energy in the United States. With 40 locations across the
nation and nearly $2 billion in energy revenues in 2006, AREVA
Inc., through its subsidiaries, combines U.S. leadership, access to
worldwide expertise and a proven track record of performance. AREVA
Inc. is headquartered in Bethesda, Md. The EDF Group is the leading
electricity producer in Europe. It is involved in supplying energy
and services to close to 40 million customers around the world,
including more than 28 million in France. PPL Corporation,
headquartered in Allentown, Pa., controls more than 11,000
megawatts of generating capacity in the United States, sells energy
in key U.S. markets and delivers electricity to about 4 million
customers in Pennsylvania and the United Kingdom. More information
is available at http://www.pplweb.com/. Certain statements
contained in this news release, including statements with respect
to future earnings, growth, corporate strategy and generation, are
"forward-looking statements" within the meaning of the federal
securities laws. Although PPL Corporation believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable, these statements involve a number of
risks and uncertainties, and actual results may differ materially
from the results discussed in the statements. The following are
among the important factors that could cause actual results to
differ materially from the forward-looking statements: political,
legislative, regulatory or economic developments and conditions;
new accounting requirements or new interpretations or applications
of existing requirements; the profitability and liquidity of PPL
Corporation and its subsidiaries; capital markets; and receipt of
necessary governmental approvals. Any such forward-looking
statements should be considered in light of such factors and in
conjunction with PPL Corporation's Form 10-K and other reports on
file with the Securities and Exchange Commission. DATASOURCE: PPL
Corporation CONTACT: Dan McCarthy of PPL Corporation,
+1-610-774-5997, (fax) +1-610-774-5281 Web site:
http://www.pplweb.com/
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