• Gabe Semenza •
• Originally published June 30, 2009 at 6:06 p.m., updated June 30, 2009 at 6:21 p.m.

Exelon Nuclear won't decide whether to build a Victoria County plant for at least three years - and possibly as many 20.

The company bought itself a two-decade window to weigh its options by announcing Tuesday it will seek an early site permit instead of a construction and operating license.

Exelon had planned to decide by early 2010 whether to build. Unforeseen U.S. economy woes, unpredictable energy prices and a lack of ample federal loan guarantees threw a reactor-sized wrench into those plans, Exelon spokespeople said.

The decision to file the early site permit, though, gives local nuclear supporters hope. It shows Exelon hasn't given up on building locally, they say.

"The fact they're willing to move forward with this early site permit means they still have a strong confidence in Victoria and in this site," said Dale Fowler, president of the Victoria Economic Development Corp. "I view that as very positive. We know projects of this magnitude take a long time. We've viewed it as a marathon all along."

To learn how this decision affects the timeline of a potential plant build, the effects on Exelon's Guadalupe River water reservations and more, read Wednesday's Advocate and visit this site later for the full story.

Updated information: Associated Press reports decision:

COLUMBUS, Ohio (AP) - Power generator Exelon Corp. said Tuesday it has called off plans for now to build a new nuclear plant in Texas because of worries over the economy and the limited availability of federal loan guarantees.

The Chicago-based company, the largest nuclear power generator in the U.S., is the second company in the past two months to postpone work for a new nuclear plant. St. Louis-based AmerenUE said in April that it was suspending work on a reactor in Missouri.

"We just aren't in a place to pursue the nuclear project," John Rowe, Exelon's chairman and CEO, told The Associated Press in an interview regarding the company's plans to add two nuclear reactors in Victoria, Texas.

A wave of new nuclear plants is expected to play a giant role in meeting the growing need for electricity in the U.S. while, at the same time, helping the nation cut emissions from greenhouse gases that contribute to global warming.

But the projects are so expensive, running an estimated $6 billion to $8 billion per unit, that they are proving difficult to finance.

AmerenUE pulled its project when legislators balked on changing a state law that blocks utilities from charging customers for certain costs of a new power plant before it starts producing electricity.

Making it harder on Exelon was that it did not make the initial cut for federal loan guarantees for the project.

The Energy Department announced in May that it has narrowed its list of the most likely recipients of $18.5 billion in government loan guarantees to four companies. Exelon has started a hostile takeover attempt of one of those companies, NRG Energy, which wants to build two new reactors at its Voglte power plant near Bay City, Texas.

With credit difficult to come by and the economy remaining weak, the loan guarantees have become vital to proceed with these projects.

Exelon said some activity may continue at its site in Victoria, but major preconstruction work such as road upgrades and site preparations will be deferred.

Rowe said the initial $18.5 billion is not enough to help fund the expected first round of six to eight nuclear plants. But with Congress dealing with legislation that would, for the first time, impose caps on carbon dioxide emissions, new nuclear power will be needed, Rowe said.

"In a carbon constrained world, we just have to have a significant nuclear renaissance," Rowe said.

Exelon distributes electricity to 5.4 million customers in the Chicago and Philadelphia areas and natural gas to 485,000 customers in the Philadelphia area.

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