NRG Energy Applies to Build Two Nuclear Reactors

New Jersey-based energy company NRG Energy has applied for permission from the Nuclear Regulatory Commission to construct two nuclear reactors in Texas. This is the first such application to be submitted to the Commission in 31 years. NRG is using a new application process that allows companies to apply for permission to both build and operate a reactor. The agency is anticipating a rush of applications "represent[ing] a possible investment by the U.S. power industry of $60 billion to $90 billion," the WSJ reports. Companies that get their applications in early could qualify for federal incentives and loan guarantees. Congress is expected to favor a rejuvenation of the country's aging nuclear facilities, though the flurry of applications could spur new debate on their safety. Nuclear power, reviled in the wake of the Three Mile Island accident, is gaining favor now that coal-fired plants have been shown to complicate the prevention of global warming and natural gas plants depend on an expensive fuel. NRG is a surprising company to lead the charge: it makes and sells electricity and has never built a nuclear reactor. "We're like the uncola," said NRG CEO David Crane. In related news, U.S. Rep. Edward Markey said Monday that outsourcing part of the permitting process for federal nuclear power plants might be illegal. "If Congress had intended to turn oversight of the extraordinarily sensitive nuclear sector over to private companies, we would not have established the NRC," he said.

Sources: Wall Street Journal, New York Times, Dow Jones
Commentary: Nuclear Reactor Presents Huge Implications For NRG Energy • Solid Buying Opportunity in NRG Energy Following Goldman Call
Stocks/ETFs to watch: NRG, EXC, D. Competitors: AES. ETFs: PUI, UTH, VXF
Earnings call transcript: NRG Energy Q2 2007

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