Expansion of Bay City Nuke Plant Abandoned

Keep Houston Press Free
I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Houston and help keep the future of Houston Press free.

The ambitious plan to double the size of the South Texas Nuclear Project, already in trouble over cost concerns, has been abandoned "as a result of the ongoing nuclear incident in Japan," its owner announced today.

NRG Energy, owner of the plant, said "while it will cooperate with and support its current partners and any prospective future partners in attempting to develop STP successfully, NRG will not invest additional capital in the STP development effort."

It's a big victory for those who opposed the expansion and, of course, a blow for those who think nuclear power is the way to go semi-green these days.

The project had been in trouble even before the Japanese disaster; the city of Houston had never gotten on board with it, the city of Austin bailed out, and San Antonio wavered on its participation.

Still, NRG thought it had procured enough federal funding, and a possible Japanese partnership, to make it a go.

"The tragic nuclear incident in Japan has introduced multiple uncertainties around new nuclear development in the United States which have had the effect of dramatically reducing the probability that STP can be successfully developed in a timely fashion," said David Crane, President and CEO of NRG. "We continue to believe both in the absolute necessity of a U.S. nuclear renaissance and that STP is the best new nuclear development project in the country bar none. However, 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 will take a pretax charge of almost a half-billion dollars for the first quarter of the year, for all you CPA nerdniks out there.

Keep the Houston Press Free... Since we started the Houston Press, it has been defined as the free, independent voice of Houston, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Houston with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.


Join the Press community and help support independent local journalism in Houston.


Join the Press community and help support independent local journalism in Houston.