Exelon drops plan to pursue Texas reactor, cites cheap natgas

Tue Aug 28, 2012 1:16pm EDT

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(Reuters) - Exelon Corp (EXC.N) will halt efforts to gain regulatory approval to build a new nuclear plant in southeast Texas, the company said on Tuesday.

Chicago-based Exelon, the nation's largest nuclear operator, said it notified the U.S. Nuclear Regulatory Commission that it will withdraw its application for an early site permit for land near Victoria in southeast Texas.

"The action is in response to low natural gas prices and economic and market conditions that have made construction of new merchant nuclear power plants in competitive markets uneconomical now and for the foreseeable future," said Charles Pardee, Exelon Generation's chief operating officer.

In 2008, Exelon announced a plan to develop two new reactors at the Victoria site.

(Reporting by Eileen O'Grady in Houston; Editing by Gerald E. McCormick)

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