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CPS Energy Working to Protect Its Customers in STP Dispute

12/31/2009

Today, the Bexar County District Court Judge John D. Gabriel denied Nuclear Innovation North America, LLC (NINA) their request to place a temporary restraining order against CPS Energy.

Initially, today’s hearing was set for the purpose of seeking a specific court date when our legal pleadings against NRG/NINA and the special exceptions submitted by NRG/NINA could be heard and ruled upon.  However, late last night, NINA/NRG requested a temporary restraining order with the court that would have effectively mandated CPS Energy to make an immediate payment to fund all South Texas Project Units 3 and 4 (STP 3&4) activity or approve any expenditures recommended by the Project Manager, for work to be performed in January 2010.  After hearing arguments for both sides, Judge Gabriel denied NINA’s request for the restraining order.

The attorneys spent the remainder of the afternoon negotiating a schedule for a Trial on Merits where additional issues will be addressed.  No specific date has been selected, but mid to late January remains a possibility. 

Today’s District Court decision in favor of CPS Energy is encouraging and reaffirms CPS Energy’s resolve to maintain an optimum position in protecting the interests of our city and its citizens, our customers, inside and outside the courtroom.  We have, and will continue, to honor our contractual obligations to fund the project.

“We’d like to see a acceptable business solution,” said CPS Energy Acting General Manager Jelynne LeBlanc-Burley, “but such an outcome cannot and will not be a one-sided deal for the benefit of NRG Energy at our expense. We will vigorously seek to protect our ownership value in STP including existing water, land and other valuable assets for the benefit of our customers and community.”





CPS Energy is the nation's largest municipally owned natural gas and electric utility providing service to approximately 707,000 electric customers and 322,000 natural gas customers in and around the City of San Antonio. The utility ranks among the nation's lowest-cost energy providers while ranking number 1 in wind-energy capacity among municipally owned utilities, and number 1 in Texas in the amount of solar-generated electricity under contract.