GE's Advanced ESBWR Nuclear Reactor Chosen for Two Proposed Projects; NuStart, Entergy License Applications Would Be Among the First In Three Decades.

WILMINGTON, N.C. -- The U.S. utility industry has announced plans to prepare license applications to build a new generation of nuclear reactors at three sites in Mississippi, Alabama and Louisiana, with two projects featuring GE Energy's advanced reactor design, the Economic Simplified Boiling Water Reactor (ESBWR).

On September 22, U.S. utility consortium NuStart Energy Development, LLC announced it would develop a federal construction and operating license (COL) application at a site adjacent to member utility Entergy's Grand Gulf Nuclear Station in Port Gibson, Miss. GE's ESBWR is NuStart's preferred reactor technology for this project.

Separate from its NuStart project, New Orleans, La.-based Entergy said it also will simultaneously develop a COL application to potentially build and operate a second ESBWR, this one adjacent to the utility's River Bend nuclear power plant near St. Francisville, La.

The COLs could be among the first such license requests in three decades. Utilities must obtain a COL from the U.S. Nuclear Regulatory Commission (NRC) to have the option of building a new reactor.

"We look forward to working closely with NuStart and Entergy to begin more detailed, site-specific engineering work required to complete the construction and operating license (COL) applications for the ESBWR projects," said Andy White, president and CEO of GE Energy's nuclear business.

The ESBWR is a new reactor design of the "Generation III+" class, designed to be safer and more cost-effective to operate due to "passive" safety systems, simplified design and a smaller footprint -- thus reducing its construction schedule and costs.

NuStart's selection of Grand Gulf

Grand Gulf was a natural choice of NuStart for a 1,500-megawatt ESBWR. The plant's owner, Entergy, is the nation's second largest operator and a leader for the next generation of nuclear energy in the United States.

In addition, Grand Gulf has received strong state and local community support, and Entergy is on track to receive an early site permit from the NRC by early 2007, the first under the federal agency's new licensing process.

Grand Gulf is one of two sites that NuStart announced would potentially host new advanced reactors. NuStart has also selected the Tennessee Valley Authority's (TVA) unfinished Bellefonte plant in Scottsboro, Ala. for a potential Westinghouse AP1000 reactor.

"With NuStart's announcement of the two sites, a U.S. nuclear renaissance is clearly within reach," noted GE's White.

"Today's announcement means we will be taking the necessary steps to have the option to build new nuclear capacity - especially if nuclear energy continues to be the lowest cost, best option for its power customers in the future," said Dan Keuter, Entergy's vice president of nuclear business development. "Our customers want a stable, low-cost electricity source that also does not contribute to climate change. Advanced reactors like the ESBWR can provide both."

NuStart will prepare separate COL applications on behalf of Entergy and the TVA. The industry group plans to submit the COLs to the NRC for review in late 2007 and early 2008. After a two-to-three year review process, the NRC could issue the two COLs in 2010. At that time, any NuStart member company, or alliance of companies, could take over one or both of NuStart's COLs and proceed with construction at the site identified in the given license.

If Entergy decides to proceed with building an ESBWR at Grand Gulf, construction is expected to take up to four years, with commercial operation beginning as soon as 2015.

Entergy's River Bend project

Entergy's River Bend site in Louisiana was on NuStart's list of six semifinalist sites. NuStart praised the strong showing of state and local community support for the River Bend proposal. In its September 22 announcement, NuStart stated River Bend and the other five sites are "excellent locations for an advanced nuclear unit from a financial and technical standpoint."

In late 2007 or early 2008, Entergy will decide whether to submit its COL applications for Grand Gulf and River Bend to the NRC.

About GE Energy

GE Energy is one of the world's leading suppliers of power generation and energy delivery technology, with 2004 revenues of $17.3 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, distributed power and energy rental industries.

GE Energy's nuclear business, headquartered in Wilmington, N.C., develops advanced light water reactors and provides a wide array of technology-based products and services to help owners of both boiling and pressurized water reactors safely operate their facilities with greater efficiency and output.