GE and STP Nuclear Operating Company Sign ABWR Project Development Agreement.

WILMINGTON, N.C. -- GE Energy's nuclear business and the STP Nuclear Operating Company (STPNOC), acting as agent for NRG South Texas LP, have signed a project development agreement to study the deployment and begin licensing activities for two GE Advanced Boiling Water Reactors (ABWRs) that would be located at the South Texas Project Electric Generating Station (STP).

The proposed project would be built adjacent to the existing STP nuclear plant, located near Bay City and about 90 miles southwest of Houston. The existing plant utilizes two 1,312 MW pressurized water reactors (PWRs) to supply power to customers in San Antonio, Austin, Houston, Corpus Christi and surrounding areas.

The agreement comes just weeks after STP's 44 percent owner, NRG Energy Inc. (NYSE: NRG), announced its intention to pursue the two-unit ABWR project. The projects are part of a larger initiative to expand and repower NRG's generation portfolio in Texas, California, Connecticut, Delaware, Louisiana and New York.

On July 27, STPNOC, NRG and GE representatives met with the U.S. Nuclear Regulatory Commission (NRC) to discuss their intention to prepare a combined license (COL) application for the two-unit project.

With the recent ABWR announcement, NRG joins a growing number of generation companies that have notified the NRC of their potential interest in building new, advanced reactors.

The NRC issued final design certification for the GE ABWR in 1997, allowing it to be used in U.S. projects. The ABWR is a "Generation III" reactor design that is more advanced than existing reactors in operation. For example, the ABWR design incorporates digital controls and has relocated recirculation pumps inside the reactor containment vessel for enhanced safety.

"We are very excited to be working with STPNOC and NRG to build the first ABWRs in the United States," said Andy White, president and CEO of GE Energy's nuclear business. "By selecting GE's NRC-certified ABWR technology, NRG will be able to quickly offer its customers even a greater baseload supply security as the public's demand for energy continues to rise."

GE's ABWR technology is the only proven Generation III reactor operating in the world today with four operating units in Japan, with the first starting up in 1996. Two more ABWRs are nearing completion in Taiwan and construction has begun on a seventh unit in Japan. Additional ABWRs are in the planning stages. As a result, utilities have access to important "baseline" construction and operational data, offering them a greater degree of certainty about ABWR project costs. Additionally, GE has an established global supply chain to meet any utility's construction schedule and cost requirements.

"Our advanced engineering, design and production capabilities are among the best in the industry, which we look forward to demonstrating on this project," White said. "We are ready to build new ABWRs."

The STP plant is operated by STPNOC and owned by Austin Energy, CPS Energy and NRG Texas. STP's current twin reactors produce about 2,600 megawatts of electricity, enough for approximately two million homes.

GE Energy's nuclear business 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.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.