May 2010 Archives

A proposal asking ExxonMobil to disclose what it is doing to reduce risks from toxic chemicals in natural gas drilling, and consider alternatives, won support today from holders of 26.3 percent of the company's shares - the latest indication of investors' concerns about hydraulic fracturing's threat to drinking water, public health and shareholder value.

The level of support was five times the typical level for a first-time environmental resolution. The proposal was put forth by As You Sow, a shareholder advocacy organization based in San Francisco, representing the Park Foundation of Ithaca, N.Y., and the holders of 16,746 ExxonMobil shares valued at more than $1.1 million.

"Today's vote sent a strong message to ExxonMobil that shareholders are concerned about how it is dealing with hydraulic fracturing, especially in light of the expansion that will make it the nation's largest natural gas company," said Michael Passoff, senior program director of the corporate responsibility program at As You Sow.

Hydraulic fracturing, or "fracking," is a controversial process of injecting water, chemicals and particles underground to increase gas production. In response to reports of contaminated water supplies and intense public concern, tougher regulations have been introduced in New York, Pennsylvania, and Colorado and legislation has been introduced in Congress to repeal the exemption of fracking from the Safe Drinking Water Act.

"Fracking poses regulatory risks that could greatly increase operation costs, legal liabilities from health impacts, and reputational risk from growing public and political opposition," added Passoff. "If ExxonMobil truly aren't concerned about the financial ramifications of fracking, they're not a good bet for investors."

In the absence of meaningful disclosure by the company, shareholders took the unusual step of highlighting fracking risks with the Securities and Exchange Commission. (http://bit.ly/9TFOjP). For background on the significance of today's shareholder vote, see http://jm.ly/EGys66.

"The Gulf oil spill is a powerful example of how oil and gas drilling can devastate the environment," said Jon Jensen, executive director of the Park Foundation. "This is a good first step in responsibly seeking energy in a way that protects the environment, human health, and the welfare of the company."

Westinghouse Electric Company LLC co-hosted a conference on the current and future potential of nuclear energy in Italy under the ongoing co-operation with the Italian energy foundation EnergyLab. Westinghouse sponsored the event, titled "AP1000™ is on schedule for 2013," which was held at the Chamber of Deputies in Rome.

The event highlighted the successes of current AP1000 projects, principally that all four AP1000 plants are on schedule in China with the first commercial operation date due in 2013. The event also discussed Westinghouse's 10 AP1000 plants under contract with Chinese and US customers and how Italian industry is playing a large role in the success of current AP1000 projects. Presentations were made by representatives of major Italian Industries describing their participation with Westinghouse on current AP1000 projects.

Gary Shuttleworth, Director of International Business Development, says that Westinghouse continues it commitment in support of the Italian nuclear program.  "Westinghouse welcomes the opportunity to collaborate with EnergyLab in promoting nuclear energy in Italy.  We firmly believe that the Westinghouse AP1000™ plant is the solution for providing the people of Italy with safe, secure and economically responsible energy, and we look forward to taking part in the overall discussion relative to Italy's energy needs."  

The AP1000 plant design is certified by the U.S. Nuclear Regulatory Commission, the only Generation III+ reactor to receive such certification.  Additionally, the European Utility Requirements (EUR) organization certified that the AP1000 plant is compliant with European Utility Requirements, confirming that it can be successfully deployed in Europe.

The Westinghouse AP1000 plant offers additional benefits through its simplified modular construction methods and greater ability to involve Italian industry through localization of manufacturing and construction, known as the Buy Where We Build™ program.  

In addition to four AP1000 plants that the Westinghouse/Shaw Consortium is providing in China, Westinghouse and its AP1000 plant have been identified as the supplier and technology of choice for no less than 14 plants that have been announced in the United States, including six for which engineering, procurement and construction contracts have been signed. Additionally, Westinghouse and China are currently in discussion on plans for additional AP1000 plants to be sited inland of China's coastal areas.

Westinghouse believes the AP1000 design is ideally suited for the worldwide nuclear power marketplace. The AP1000 nuclear power plant is:

• Based on standard Westinghouse pressurized water reactor (PWR) technology that has achieved more than 2,500 reactor years of highly successful operation
• An 1100MWe design that is ideal for providing baseload generating capacity and fits within the constraints of the Italian electrical grid
• Modular in design, promoting ready standardization and high construction quality
• Economical to construct and maintain (less concrete and steel and fewer components and systems mean there is less to install, inspect and maintain)
• Designed to promote ease of operation (features most advanced instrumentation and control systems (I&C) in the industry)

For more information about the Westinghouse AP1000 plant, visit its Web site at www.ap1000.westinghousenuclear.com.

EnergyLab, founded in 2007, is a cross-organizational collaboration of government and academic institutions, including the Lombardia regional government, AEM Foundation and the Edison Foundation, the municipality of Milan, the University of Milan, the University of Milan-Bicocca, the Catholic University, Milan Polytechnic, Bocconi University and the research center ERSE.

Westinghouse Electric Company, a group company of Toshiba Corporation (TKY: 6502), is the world's pioneering nuclear energy company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world.  Westinghouse supplied the world's first PWR in 1957 in Shippingport, Pa.  Today, Westinghouse technology is the basis for approximately one-half of the world's operating nuclear plants, including 60 percent of those in the United States.

SOURCE Westinghouse Electric Company LLC