A third proposal has surfaced to build a new nuclear facility in Texas. Exelon Generation on Friday notified the Nuclear Regulatory Commission (NRC) that it has begun the process to obtain a combined construction and operating license (COL) to build a nuclear plant in the state at an as-yet unnamed location.

Exelon did not disclose capacity for its plant, but said it expects to submit an application to the NRC in 2008. Texas was picked for a new site partly because Exelon already owns natural gas generating plants in the state, the utility noted. Also, Exelon said Texas is expected to have an increase in electricity demand over the next 20 years, and the state needs to reduce its greenhouse gas emissions.

“We view Texas as a logical area for expansion of nuclear power,” said Exelon Generation President Jack Skolds. “Exelon also sees the state’s burgeoning need for more electricity with fewer carbon emissions, which is precisely what nuclear energy delivers.” Exelon Nuclear is the largest operator of nuclear energy stations in the United States, with 17 operating reactors in Illinois, Pennsylvania and New Jersey.

Exelon’s filing follows notifications by two other utilities to possibly build nuclear facilities in Texas. NRG Energy filed with the NRC in June to build 2,700 MW of nuclear power at the existing South Texas Project facility (see Power Market Today, June 22). In late August, TXU Corp. began work on applications for 2-6 GW of new nuclear generation that would be installed at one-to-three sites, including the existing Comanche Peak facility in Somervell County, TX (see Power Market Today, Sept. 1). Currently, South Texas 1 and 2 have a generating capacity of 2,500 MW. Comanche Peak 1 and 2 have a capacity of 2,300 MW.

Exelon said its filing “launches a process that preserves for Exelon the option to develop a new nuclear plant in Texas without immediately committing to the full project.” It will cost Exelon about $30 million to develop the COL. Timing of the application would allow the company to participate in nuclear production tax credits, financial risk insurance and federal loan guarantees specified in the 2005 Energy Policy Act.

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