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E-mails between Toshiba Inc. and CPS Energy and also among CPS executives make clear that the utility knowingly understated the costs of nuclear expansion to the public. Over a period of months during which CPS officials were telling the public the price for expansion at the South Texas Project was $13 billion, executives knew Toshiba was projecting the cost to be at least $4 billion higher. The same e-mails demonstrate anxiety among CPS officials that NRG Energy - a publicly held corporation that is CPS's partner in the project - intended to reveal the inflated cost estimates. "I think your discussion of incomplete cost estimates in public in November is a major problem," the CPS vice president of power plant construction wrote to an NRG official.

E-mails between Toshiba Inc. and CPS Energy and also among CPS executives make clear that the utility knowingly understated the costs of nuclear expansion to the public. Over a period of months during which CPS officials were telling the public the price for expansion at the South Texas Project was $13 billion, executives knew Toshiba was projecting the cost to be at least $4 billion higher. The same e-mails demonstrate anxiety among CPS officials that NRG Energy - a publicly held corporation that is CPS's partner in the project - intended to reveal the inflated cost estimates. "I think your discussion of incomplete cost estimates in public in November is a major problem," the CPS vice president of power plant construction wrote to an NRG official.

"Nuclear Innovation North America looked to score a quick knockout Monday as the massive nuclear lawsuit filed by CPS Energy got under way. 408th District Court Judge Larry Noll was expected to announce Tuesday whether the tactic worked. NINA, which is being sued by CPS over the teetering proposal to build two more reactors at the South Texas Project, asked Noll for a summary judgment, a move that would give NINA a victory in the first phase of the case. NINA, which is a partnership between NRG Energy and Toshiba, contends that CPS should lose the roughly $350 million it has invested in the project and its ownership rights if it withdraws. Its attorneys argued an abbreviated version of the case Monday. "It is pretty clear that NRG is intent on trying to convince a judge that our customers should lose all of their investment," said CPS acting General Manager Jelynne LeBlanc-Burley, adding that she still holds out hope for a settlement. CPS is suing NINA for $32 billion, claiming the company pulled CPS into the deal by making fraudulent claims and then orchestrated a misinformation campaign through the media to force CPS out."

A vote on the plan to reduce San Antonio's share in the nuclear project will be postponed at least a week. CPS Energy's board had been expected to vote Monday on a proposal pushed by Mayor Julián Castro to decrease its stake in the expansion of the nuclear South Texas Project to 20 percent to 25 percent, meaning it would have to sell about of half its current ownership. But any public discussion and decision on nuclear by the utility's board has been postponed tentatively until Oct. 13. "This decision is much too important to rush," Castro said via e-mail. "By moving board consideration back a week, we will give the CPS board, the City Council and, most importantly, the public additional time to hear from CPS Energy on this critical issue." The delay comes a day after Castro halted a closed-door meeting between the City Council and CPS Energy to discuss nuclear because of a challenge from the San Antonio Express-News.

A vote on the plan to reduce San Antonio's share in the nuclear project will be postponed at least a week. CPS Energy's board had been expected to vote Monday on a proposal pushed by Mayor Julián Castro to decrease its stake in the expansion of the nuclear South Texas Project to 20 percent to 25 percent, meaning it would have to sell about of half its current ownership. But any public discussion and decision on nuclear by the utility's board has been postponed tentatively until Oct. 13. "This decision is much too important to rush," Castro said via e-mail. "By moving board consideration back a week, we will give the CPS board, the City Council and, most importantly, the public additional time to hear from CPS Energy on this critical issue." The delay comes a day after Castro halted a closed-door meeting between the City Council and CPS Energy to discuss nuclear because of a challenge from the San Antonio Express-News.

CPS Energy CEO Milton Lee and Interim General Manager Steve Bartley are heading to Japan on Tuesday to square off behind closed door meetings with Toshiba Corp. officials to discuss why the cost projection on two new nuclear reactors are higher than expected. Toshiba Power Systems is the lead contractor for the proposed expansion of the South Texas Project nuclear power plant in Matagorda County, Texas. There have been reports indicating that the price tag could be as much as $4 billion higher than originally projected. CPS Energy's partner in the South Texas Project expansion, NRG Energy, will also be involved with discussions. CPS Energy will press the Japanese for a pricing structure on the two new reactors that is more affordable than the current cost projection. CPS Energy wants the cost of the nuclear reactors to have no more than a 5 percent impact on customer bills, Bartley says.

CPS Energy CEO Milton Lee and Interim General Manager Steve Bartley are heading to Japan on Tuesday to square off behind closed door meetings with Toshiba Corp. officials to discuss why the cost projection on two new nuclear reactors are higher than expected. Toshiba Power Systems is the lead contractor for the proposed expansion of the South Texas Project nuclear power plant in Matagorda County, Texas. There have been reports indicating that the price tag could be as much as $4 billion higher than originally projected. CPS Energy's partner in the South Texas Project expansion, NRG Energy, will also be involved with discussions. CPS Energy will press the Japanese for a pricing structure on the two new reactors that is more affordable than the current cost projection. CPS Energy wants the cost of the nuclear reactors to have no more than a 5 percent impact on customer bills, Bartley says.

It's come to this: The simple truth withheld from the community by CPS Energy was revealed last week by NRG Energy executives to a Houston gathering of financial analysts: San Antonio can't afford the high price of expanding the South Texas Project nuclear facility. Not that we need another example, but once again Wall Street enjoys the advantage over Main Street. Ratepayers don't have a need to know, but let's not deny institutional investors a little inside information. The project will cost billions more than CPS estimated, even after interim General Manager Steve Bartley went to Japan to seek concessions. Utility executives want until January to bring a new number to Mayor Julián Castro and the City Council. Why wait? What CPS once promised was a good deal for the city is now, clearly, a bad deal. It's a bad deal made worse by utility executives who deliberately withheld critical financial data, thus misleading elected city leaders, the Express-News and the public. Even as we were told the project would cost CPS and NRG a total of $13 billion, utility executives knew Toshiba Inc. was estimating $4 billion more.

It's come to this: The simple truth withheld from the community by CPS Energy was revealed last week by NRG Energy executives to a Houston gathering of financial analysts: San Antonio can't afford the high price of expanding the South Texas Project nuclear facility. Not that we need another example, but once again Wall Street enjoys the advantage over Main Street. Ratepayers don't have a need to know, but let's not deny institutional investors a little inside information. The project will cost billions more than CPS estimated, even after interim General Manager Steve Bartley went to Japan to seek concessions. Utility executives want until January to bring a new number to Mayor Julián Castro and the City Council. Why wait? What CPS once promised was a good deal for the city is now, clearly, a bad deal. It's a bad deal made worse by utility executives who deliberately withheld critical financial data, thus misleading elected city leaders, the Express-News and the public. Even as we were told the project would cost CPS and NRG a total of $13 billion, utility executives knew Toshiba Inc. was estimating $4 billion more.

CPS Energy, San Antonio's electricity company, sued NRG Energy for $32 billion because of contractual disputes involving the expansion of the South Texas Project nuclear power facility. CPS owns a stake in the facility, which NRG also owns and operates. CPS says in the lawsuit that NRG, NRG's Nuclear Innovation North America joint venture, and Toshiba, "made misrepresentations and also failed to disclose project critical information to induce CPS Energy to participate in the project."

CPS Energy, San Antonio's electricity company, sued NRG Energy for $32 billion because of contractual disputes involving the expansion of the South Texas Project nuclear power facility. CPS owns a stake in the facility, which NRG also owns and operates. CPS says in the lawsuit that NRG, NRG's Nuclear Innovation North America joint venture, and Toshiba, "made misrepresentations and also failed to disclose project critical information to induce CPS Energy to participate in the project."

A request for a temporary restraining order against CPS Energy has been denied by Bexar County District Judge John D. Gabriel. Nuclear Innovation North America (NINA) LLC, the joint venture of NRG Energy and Toshiba Corp., had sought the order during a hearing to determine a court date when legal pleadings will be heard concerning CPS Energy's lawsuit against NINA. The legal dispute arose over questions about the cost estimate of two nuclear reactors at the South Texas Project near Bay City, Texas. CPS Energy contends that the estimate came in $4 billion higher than the utility anticipated.

A request for a temporary restraining order against CPS Energy has been denied by Bexar County District Judge John D. Gabriel. Nuclear Innovation North America (NINA) LLC, the joint venture of NRG Energy and Toshiba Corp., had sought the order during a hearing to determine a court date when legal pleadings will be heard concerning CPS Energy's lawsuit against NINA. The legal dispute arose over questions about the cost estimate of two nuclear reactors at the South Texas Project near Bay City, Texas. CPS Energy contends that the estimate came in $4 billion higher than the utility anticipated.

CPS Energy has received the contractually mandated cost estimate for proposed South Texas Project (STP) Units 3 and 4 from contractor Toshiba, however the utility will make no decisions on the project until rigorous analysis of price and methodology is completed. The cost estimate is structured in a range, and it will take CPS Energy staff several days to analyze the methodology behind the numbers and perform the necessary due diligence, said Jelynne LeBlanc-Burley, CPS Energy's acting general manager. "We are well aware of the confidentiality provision contained in our contract with Toshiba and NINA (Nuclear Innovation North America, a limited liability company comprised of Toshiba and NRG Energy)," said LeBlanc-Burley. "If the cost estimate is disclosed prematurely, it places our customers at risk. Our staff will evaluate the information from Toshiba, put it into context and brief our Board of Trustees as soon as possible. In turn, we will properly notify other key stakeholders including the San Antonio City Council."

CPS Energy has received the contractually mandated cost estimate for proposed South Texas Project (STP) Units 3 and 4 from contractor Toshiba, however the utility will make no decisions on the project until rigorous analysis of price and methodology is completed. The cost estimate is structured in a range, and it will take CPS Energy staff several days to analyze the methodology behind the numbers and perform the necessary due diligence, said Jelynne LeBlanc-Burley, CPS Energy's acting general manager. "We are well aware of the confidentiality provision contained in our contract with Toshiba and NINA (Nuclear Innovation North America, a limited liability company comprised of Toshiba and NRG Energy)," said LeBlanc-Burley. "If the cost estimate is disclosed prematurely, it places our customers at risk. Our staff will evaluate the information from Toshiba, put it into context and brief our Board of Trustees as soon as possible. In turn, we will properly notify other key stakeholders including the San Antonio City Council."

"CPS Energy's board of trustees has approved the proposed $1 billion settlement with Nuclear Innovation North America and NRG Energy Inc. The board's decision clears the way for the development of two nuclear reactors at the South Texas Project (STP) in Matagorda County, Texas. Nuclear Innovation North America (or NINA) is the nuclear development company jointly owned by NRG and Toshiba Corp. NINA is the developer of the expansion project. CPS Energy's management and NINA reached the proposed settlement back on Feb. 17. However, the utility's board of trustees still needed to sign off on the deal. "With this agreement NINA and CPS Energy can now go forward to develop nuclear energy for San Antonio's future energy needs," says CPS Energy Chairman Charles Foster. "This is a good and fair settlement for both parties.""

The cost escalation of a new nuclear project is the subject of an investigation by Texas utility CPS Energy, which warned that new reactors "must be affordable". CPS is warning that the price must be right for South Texas Project 3 and 4 In June the project to build two Advanced Boiling Water Reactors at the South Texas Project was valued at $10 billion - or $13 billion including finance. CPS is responsible for half of the project, but the firm's reaction to a reported $4 billion cost increase has cast its involvement has been cast into doubt.

The cost escalation of a new nuclear project is the subject of an investigation by Texas utility CPS Energy, which warned that new reactors "must be affordable". CPS is warning that the price must be right for South Texas Project 3 and 4 In June the project to build two Advanced Boiling Water Reactors at the South Texas Project was valued at $10 billion - or $13 billion including finance. CPS is responsible for half of the project, but the firm's reaction to a reported $4 billion cost increase has cast its involvement has been cast into doubt.

Last week's revelation that the proposed STP nuclear expansion may cost $4 billion (31 percent) more than expected, is a blessing and an opportunity for San Antonio. Courageous leadership is now needed, especially in light of the apparent attempt by CPS Energy management to hide this information before a council vote. If this news had not been discovered, ratepayers would have been saddled with $400 million more for nuclear paperwork, setting a path for billions more in uncontrolled spending. Warning about CPS debt, bond-rater Moody's dropped CPS' outlook from "stable" to "negative," and noted council must be readily willing to raise electric rates. How high will rates go? The cost overruns imply nuclear costs of 13-15 cents/kWh - much higher than projected. What to do now? A completely fresh start is needed.

Last week's revelation that the proposed STP nuclear expansion may cost $4 billion (31 percent) more than expected, is a blessing and an opportunity for San Antonio. Courageous leadership is now needed, especially in light of the apparent attempt by CPS Energy management to hide this information before a council vote. If this news had not been discovered, ratepayers would have been saddled with $400 million more for nuclear paperwork, setting a path for billions more in uncontrolled spending. Warning about CPS debt, bond-rater Moody's dropped CPS' outlook from "stable" to "negative," and noted council must be readily willing to raise electric rates. How high will rates go? The cost overruns imply nuclear costs of 13-15 cents/kWh - much higher than projected. What to do now? A completely fresh start is needed.

"A San Antonio municipal utility's public and acrimonious divorce from a proposed two-unit, 2,700-megawatt nuclear power plant is nearly final. San Antonio municipal utility CPS Energy has been trying to separate itself from South Texas Project units 3 and 4 for several months. Last week, a settlement was reached between CPS Energy and Nuclear Innovation North America (NINA) (New York, New York), a consortium of NRG Energy Incorporated /quotes/comstock/13*!nrg/quotes/nls/nrg (NRG 21.84, -0.23, -1.04%) (Princeton, New Jersey) and Toshiba Corporation (TYO: 6502) (Tokyo, Japan) that is developing the two-unit nuclear expansion of the South Texas Project (STP). All that remains is for the CPS Energy board to ratify the deal. Toshiba is the engineering, procurement, and construction firm for STP units 3 and 4. Subcontractors include Fluor Corporation /quotes/comstock/13*!flr/quotes/nls/flr (FLR 42.80, -2.25, -4.99%) (Irving, Texas), Sargent & Lundy LLC (Chicago, Illinois), Bechtel Group Incorporated (San Francisco, California) and Westinghouse (Monroeville, Pennsylvania). "

"CPS Energy ended a two-month legal battle with its corporate partner in the proposed South Texas Project nuclear expansion with a settlement Wednesday that allows the utility to immediately stop making payments on the project while retaining a small share. The partner, Nuclear Innovation North America, also agreed to pay CPS $80 million and contribute $10 million in assistance for low-income local residents to pay power bills. The deal, which CPS Energy said is worth $1 billion total, means the utility will retain 7.625 percent of the project to build two more reactors near Bay City."

Nuclear Innovation North America argued in court Wednesday that CPS Energy had refused to pay its portion of January's development costs for the nuclear deal, a move that could kill the project. But later Wednesday, CPS said it would pay its share of January's costs, eliminating one of the many legal points of contention between the partners. "Our sole goal today was to ensure the ability of the STP expansion to continue past Jan. 1, and their decision accomplishes that goal," NRG spokesman Dave Knox said. NINA is owned by NRG and Toshiba Inc.

Nuclear Innovation North America argued in court Wednesday that CPS Energy had refused to pay its portion of January's development costs for the nuclear deal, a move that could kill the project. But later Wednesday, CPS said it would pay its share of January's costs, eliminating one of the many legal points of contention between the partners. "Our sole goal today was to ensure the ability of the STP expansion to continue past Jan. 1, and their decision accomplishes that goal," NRG spokesman Dave Knox said. NINA is owned by NRG and Toshiba Inc.

"The latest task of the state Senate Business and Commerce Committee provides a welcome opportunity for Texas to rein in rogue utilities like CPS Energy of San Antonio. Now charged with studying the costs of municipally owned utilities' generation plans and their impacts on residential and commercial customers, the Senate committee has the opportunity to protect Texans, especially low-income families, from the machinations of a utility bent on pleasing its industrial consumers at the cost of its most vulnerable customers. CPS Energy is pursuing a risky investment in a nuclear expansion project that, depending on the final cost of the project, would raise rates between 36 percent and 60 percent over the next 10 years. The municipally owned utility has failed to adequately involve the citizenry and city government in its generation planning process. CPS Energy's nuclear energy plan lacks any mechanism to protect consumers or low-income families, despite the fact that those customers would have to pick up the tab if the deal gets more expensive."

"The air blowing overhead in the brightly lit courtroom made it hard to hear at times. Overhead projectors illuminated PowerPoint presentations on both sides of the room up front. There were microphones and laptops, too, some plugged into outlets along the walls. And yet, with all the electricity thrumming through, nothing burned up CPS ratepayer dollars faster than the dozen-plus lawyers squabbling over the tattered relationship between CPS Energy and NRG Energy Inc., its co-owner in the floundering attempt to build two new nuclear plants at the South Texas Project. Relationships being what they are, the most consistent comparison made since the dispute broke into the open late last year has been divorce. It seemed too easy at first, but then on Monday, Jelynne LeBlanc-Burley, the new interim general manager at CPS, wondered why my colleague, Anton Caputo, and I sat on the NRG side of the courtroom."

CPS Energy's board unanimously agreed Tuesday to look for buyers for about half the utility's stake in the expansion of the nuclear South Texas Project, while borrowing $400 million more to continue plans to build the new reactors. The change in strategy means the utility, which owns half of the project estimated to cost $13 billion, will cut its ownership to 20 percent to 25 percent. Now CPS must find buyers for the portion it wants to sell.

CPS Energy's board unanimously agreed Tuesday to look for buyers for about half the utility's stake in the expansion of the nuclear South Texas Project, while borrowing $400 million more to continue plans to build the new reactors. The change in strategy means the utility, which owns half of the project estimated to cost $13 billion, will cut its ownership to 20 percent to 25 percent. Now CPS must find buyers for the portion it wants to sell.

Toshiba Inc. has shaved about $1.4 billion off its price to build two nuclear reactors, but it's unlikely to ever reach an amount within San Antonio's price range, NRG Energy executives said Thursday. "We would expect ... the price estimate that Toshiba will come back with may be outside the affordability range for their ratepayers," Steve Winn, CEO of the NRG-owned Nuclear Innovation North America, said at a financial analysts' meeting in Houston. At issue is the cost San Antonio's CPS Energy and NRG Energy are willing to pay contractor Toshiba to build two nuclear reactors outside Bay City. CPS Energy has promised ratepayers and the City Council that it will pursue the deal as long as it can limit power bill increases to 5 percent every other year for the next decade. This can be done if the total project, with financing, will cost about $13 billion, utility officials say. To hit that amount, Toshiba's costs need to come in about $8 billion. But the Japanese contractor, NRG confirmed, estimated its price at $12.3 billion in October.

Toshiba Inc. has shaved about $1.4 billion off its price to build two nuclear reactors, but it's unlikely to ever reach an amount within San Antonio's price range, NRG Energy executives said Thursday. "We would expect ... the price estimate that Toshiba will come back with may be outside the affordability range for their ratepayers," Steve Winn, CEO of the NRG-owned Nuclear Innovation North America, said at a financial analysts' meeting in Houston. At issue is the cost San Antonio's CPS Energy and NRG Energy are willing to pay contractor Toshiba to build two nuclear reactors outside Bay City. CPS Energy has promised ratepayers and the City Council that it will pursue the deal as long as it can limit power bill increases to 5 percent every other year for the next decade. This can be done if the total project, with financing, will cost about $13 billion, utility officials say. To hit that amount, Toshiba's costs need to come in about $8 billion. But the Japanese contractor, NRG confirmed, estimated its price at $12.3 billion in October.

CPS Energy knew a year ago that contractor Toshiba Inc. wanted at least $4 billion more than San Antonio was willing to pay for the nuclear expansion, according to several sources close to the deal. Despite this, utility officials used a much lower figure as they pitched the project at public meetings during the summer, arguing that nuclear was the most cost-effective way for San Antonio to meet its future energy needs. They took the same message to elected officials who were to vote on a $400 million bond issue and rate increases to finance the multibillion-dollar expansion of the South Texas Project near Bay City. The response of City Council members and CPS Energy trustees to the 2008 estimate was muted Saturday. "Nothing can surprise me anymore," Councilwoman Elisa Chan said. But several officials said the revelation only deepens their mistrust of the city-owned utility's leadership. "It concerns me greatly that neither the council nor the board was informed," said Mayor Julián Castro, who acknowledged he, too, recently learned of the existence of the 2008 high estimate.

CPS Energy knew a year ago that contractor Toshiba Inc. wanted at least $4 billion more than San Antonio was willing to pay for the nuclear expansion, according to several sources close to the deal. Despite this, utility officials used a much lower figure as they pitched the project at public meetings during the summer, arguing that nuclear was the most cost-effective way for San Antonio to meet its future energy needs. They took the same message to elected officials who were to vote on a $400 million bond issue and rate increases to finance the multibillion-dollar expansion of the South Texas Project near Bay City. The response of City Council members and CPS Energy trustees to the 2008 estimate was muted Saturday. "Nothing can surprise me anymore," Councilwoman Elisa Chan said. But several officials said the revelation only deepens their mistrust of the city-owned utility's leadership. "It concerns me greatly that neither the council nor the board was informed," said Mayor Julián Castro, who acknowledged he, too, recently learned of the existence of the 2008 high estimate.

All four panelists at Wednesday's forum on nuclear energy agreed the decision to partner in or forgo the expansion of the nuclear South Texas Project will play a large role in shaping San Antonio's economic future. That's where the agreement ended. The San Antonio Clean Technology Forum brought in three national experts to join CPS Energy interim General Manager Steve Bartley. The forum focused on the economics around the utility's plans to partner with NRG Energy to build two more nuclear reactors near Bay City. The utility estimates the project will cost $13 billion and wants to take a 40 percent share. CPS already has spent $276 million on the planning and permitting, and the City Council is expected in October to vote on another $400 million to enable CPS to stay in the project.