GE, Nuclearelectrica Sign Multi-Year Services and Maintenance Agreement Valued at Up To $146 Million

GE Energy - 01.20.2010

GE (NYSE: GE) and Nuclearelectrica, Romania’s state-owned nuclear utility, have signed a services and maintenance agreement for the Cernavoda Nuclear Power Plant (NPP), valued at up to US$146 million. According to the Romanian Energy Regulatory Authority (ANRE), Cernavoda NPP supplies 20% of Romania's energy. This new agreement supports Nuclearelectrica’s goals to produce reliable, safe and efficient energy, a key part of Romania’s national strategy for social and economic development.

“The service and maintenance agreement with GE further supports our commitment to ensure the reliability of electricity supply for the Romanian people,” said Pompiliu Budulan, general director of Nuclearelectrica. “Romania is investing in cleaner energy production, and nuclear power is a major part of that strategy. As Romania’s only nuclear power plant, Cernavoda plays a critical role in meeting our growing energy requirements.”

Among the dignitaries attending Tuesday’s signing ceremony were Adriean Videanu, the Romanian Minister of Economy, Trade & Business Environment; Mark Gitenstein, the U.S. Ambassador to Romania; and representatives of Nuclearelectrica and GE.

The new eight-year agreement covers full maintenance and repair services for the GE steam turbine-generators and auxiliary equipment at Cernavoda Units 1 and 2, which produce more than 1,400 megawatts of power for Romania’s electricity grid. Unit 1 has been in operation since 1996, while Unit 2 was commissioned in 2007. Nuclearelectrica’s long-range plans call for four nuclear units at the Cernavoda site.

GE’s agreement replaces and expands upon a previous four-year contract with Nuclearelectrica for Unit 1 that recently expired. “Our history of successfully supporting installation and maintenance activities at Cernavoda and delivering on our commitments was a key factor in winning the new agreement,” said Rod Christie, president, GE Energy Central & Eastern Europe, Russia & CIS

Christie added, “This latest agreement illustrates our localization strategy for Eastern Europe, and builds on our successful track record in Romania as the country seeks to expand and diversify its energy resources. It also highlights our commitment to provide cleaner, smarter, and more efficient energy solutions that help our customers and communities to grow their economies and improve living standards.” He noted that the service agreement follows several other recent GE projects in Romania, including the supply of equipment for the Fantanele and Cogelac wind farms and the Petrom Combined-Cycle Power Plant.

Established in 1998, Nuclearelectrica’s primary mission is the production of nuclear power and nuclear fuel, and the continuing development of the Cernavoda Nuclear Power Plant. The company reports to Romania’s Ministry of Economy and Trade.

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For more information, contact:

Kathleen Noonan
GE Energy
+420 239 01 5443
Kathleen.noonan@ge.com

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Masto Public Relations
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kenneth.darling@ge.com
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