News | April 10, 2008

Shaw And Westinghouse Sign Landmark EPC Contract For New Nuclear Power Generation

Baton Rouge, LA - The Shaw Group Inc. announced recently that the Nuclear Division of its Power Group and Westinghouse Electric Company, its AP1000 nuclear power plant consortium partner, have been awarded an engineering, procurement and construction (EPC) contract by Georgia Power Company, a subsidiary of Southern Company, for two Westinghouse AP1000 nuclear power units and related facilities. The AP1000 units each have an electric generating capacity of 1,100 megawatts and would be constructed at the existing Vogtle Electric Generating Plant site near Augusta, Ga.

The terms of the EPC contract are currently part of a confidential and competitive solicitation monitored by the Georgia Public Service Commission's (PSC) Independent Evaluator. The value of Shaw's contract related to a limited notice to proceed is undisclosed and will be added to the company's backlog of unfilled orders in the fiscal third quarter of 2008, with the balance of the contract being added to backlog upon receipt of the full notice to proceed.

"This EPC contract is a landmark event for Shaw, especially our nuclear team that has worked diligently to be in this position, as we embark on building the safest and most advanced power plants in world," said J.M. Bernhard, Shaw's chairman, president and chief executive officer. "Nuclear energy is vital for the future of our nation's electricity supply system as the demand for clean, reliable and cost-effective power continues to soar. We applaud Georgia Power for its leadership role in choosing new nuclear power and the world's most advanced reactor technology as part of its balanced supply portfolio approach to meeting future electricity needs."

In August 2006, Southern Nuclear Operating Company, Inc. filed an application with the Nuclear Regulatory Commission (NRC) for an early site permit for new units at the Vogtle site. In March 2008, Southern Nuclear filed an application with the NRC for a combined construction and operating license for the new units. Georgia Power expects to submit the EPC contract to the Georgia PSC in May 2008 as a self-build option in connection with its 2016-2017 capacity request for proposal. If selected by Georgia Power and certified by Georgia PSC, the two AP1000 units are expected to be placed in service in 2016 and 2017, respectively.

Shaw and Westinghouse have a long history of collaboration in the nuclear industry that dates back to the design and construction of America's first commercial nuclear power plant at Shippingport, Pa., which began operation in 1957. Today, the AP1000 consortium is delivering four new AP1000 reactors at two locations in China, and, according to the NRC, at least 14 Westinghouse AP1000 units are being planned by U.S. electric utilities.

SOURCE: The Shaw Group Inc.