The agreement remains subject to final documentation and CPS Board approval, which will be requested at its meeting on February 22, 2010.

STP 3&4 will create 4,000 to 6,000 construction jobs while the units are being built, 800 full-time jobs operating the units for the life of the plant and an economic multiplier effect that will generate 7,500 more permanent jobs across Texas, the company said.

A 2010 economic study estimated construction of the two units will generate more than $15bn in business activity across the state with $3.6bn per year in spending once the two units are operational, anticipated in 2016 and 2017.

The units will avoid emissions of almost 22 million tons of carbon dioxide and tons of sulfur, nitrogen and other emissions every year when compared with a traditional fossil-fueled plant, the company claimed.

According to the terms of the contract, NINA will increase its ownership of STP 3&4 by 42.375%, bringing its total ownership interest in the project to 92.375%. CPS Energy will retain a 7.625% interest in the project.

Upon receipt of a conditional Department of Energy loan guarantee, NINA will pay CPS Energy $80m, half paid promptly after award receipt and the other half six months later.

CPS Energy will work with the DOE to support NINA’s application. NINA will assume all management control of the project. CPS Energy will be responsible for all project development costs incurred through January 31, 2010, with NINA responsible for all project development costs incurred thereafter.

The STP expansion will use Nuclear Regulatory Commission-certified Advanced Boiling Water Reactor (ABWR) technology.

Steve Winn, CEO of NINA, said: ”This agreement is of tremendous importance for Texas, NINA, and for the American nuclear renaissance.With this agreement, we can continue developing one of the leading nuclear power projects in the country.

”The strengths of the STP 3&4 project—certified technology, turnkey contract with a proven EPC contractor, exceptional site and strong state support—will once again put us in contention for a Department of Energy (DOE) loan guarantee and ensure we have no conflicts preventing new partners from joining the project.”