We, at CPS Energy, have watched with sadness as events unfold in Japan, following the earthquake and tsunami on March 11. And like many of you, our first thoughts are for the people of Japan and the need for humanitarian assistance in the wake of this natural disaster. Our thoughts also go to the Tokyo Electric Power Company (TEPCO) workforce that is struggling to maintain control of the Fukushima nuclear facilities under such extreme conditions.

With any event of this magnitude, the repercussions are global. Already, many people are asking how this event will impact nuclear plant operations in the U.S., whether federal loan guarantees for proposed facilities are likely to go forward and whether additional planned nuclear plants will be built. It’s certainly too soon to speculate on specifics, but the following comments are meant to address some questions as best we can.

STP appears to be well prepared for possible impacts to operations that could come from a natural disaster. In particular, STP (Units 1 & 2) is unique in that it is the only commercial nuclear facility in the U.S. with three separate safety back-up systems to support safe operation of the plant and ensure cooling of the fuel rods after a loss of primary power. Other U.S. plants have two. In addition, STP has a stellar safety performance and has been recognized as among the best in the industry worldwide.

Also of note, the design of STP 1 & 2 (Pressurized Water Reactors called PWR) is different and newer than those of the Fukushima site.

CPS Energy and NRG staff members decided Monday by mutual agreement that until more information is available about the situation in Japan and its impact on the industry worldwide, it makes sense to put our purchase power agreement (PPA) discussions on hold. As with every aspect of our operations, safety comes first. We will take all the time necessary to consider our next steps and make sure that we’re making the right decisions for our community and our employees.

Diversification of fuels and resources has been a cornerstone of CPS Energy’s generation planning and will continue to be as our community and customer base grow. We have been, and will continue to, investigate all of our options for generation sources, including future natural gas and additional solar power, as well as new solid fuel options.