2 CPS Energy execs on leave over project's costs

SAN ANTONIO - Two CPS Energy workers are on administrative leave over a recently disclosed jump in the projected cost for two more units at the South Texas Project.

The board of the municipally owned CPS Energy has launched an investigation into how and when management because aware of the higher estimate.

Interim CPS Energy general manager Steve Barley, in a statement Tuesday, said an estimate that exceeds the preliminary total project cost of $13 billion is not acceptable.

The statement cited recent news reports about a $4 billion increase.

The utility seeks to expand STP, a two-unit nuclear complex about 90 miles southwest of Houston. The utility says the substantially higher preliminary cost estimate caused postponement last week of a proposed $400 million bond issue.

Names of the two workers were not released by the company.

Copyright © 2007 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.