Black & Veatch’s Energy Engineering & Construction Division announces details of Nuclear Group

KANSAS CITY, Mo., January 6, 2003 — Black & Veatch Monday announced the details of its Energy Engineering & Construction (EE&C) Division’s focused Nuclear Group, which will be responsible for overseeing all nuclear-related work in the division’s newly-created geographic regions – Europe, Asia and Americas.

The Nuclear Group will focus on two market segments: services for existing nuclear plants and design/build opportunities for new nuclear plants.

“We are seeing emerging opportunities for nuclear both in the United States and internationally,” said EE&C Senior Vice President and Director of the Nuclear Group Steve Rus. “As one of only a handful of companies in the world currently involved with the design and construction of an advanced nuclear power plant, we are in a unique position to take advantage of this resurging market. The creation of a central Black & Veatch entity to handle nuclear work worldwide positively positions us to maximize these opportunities.”

Black & Veatch is currently providing significant portions of the nuclear island design and equipment supply as well as the information/configuration management systems for the Lungmen Nuclear Power Project in Taiwan, which consists of two units rated at 1,350 megawatts of electric energy (MWe) each.

Within the United States, EE&C’s Nuclear Group will primarily pursue the existing nuclear plant services market as well as future nuclear projects. Internationally, it will pursue new nuclear projects primarily utilizing an engineer, procure and construct (EPC) approach.

“All the operating nuclear plants in the United States were designed before the mid-1980s,” said Rus. “As with all aging generating facilities, they require upgrades and improvements. From our work on Lungmen, we are well-versed with the design and supply of equipment for advanced units that feature increased security, efficiency and safety, all of which are requirements from the client’s perspective when upgrading.”

In the United States, nuclear power accounts for approximately 20 percent of the country’s total generating capacity. However, in recent years, this number has been declining. A drive by owners of these facilities to maintain this percentage is currently underway.

“We are seeing a drive to maintain this number for several reasons,” said Rus. “Nuclear energy, in terms of clean air issues and its relatively low operating cost, is an attractive source of generation. To keep these plants producing at the current rate, owners will have to upgrade, improve and extend the life of their facilities. The services provided by EE&C’s Nuclear Group will help them accomplish this.”

Another important element of EE&C’s Nuclear Group is its forward-looking approach to controlling costs for existing plant upgrades as well as new nuclear projects.

In the old nuclear market, high cost overruns were commonplace when building or upgrading facilities. EE&C’s Nuclear Group is currently addressing financial requirements for building and modifying nuclear plants and has adopted fixed price contracts as opposed to time and materials contracts to ensure that its customers do not experience such overruns.

“Nuclear work is extremely complicated,” said Rus. “From our core EPC experience with baseload coal plants, our state-of-the-art information management systems and our current work on Lungmen, EE&C’s Nuclear Group has the strong project management experience, specialized engineering abilities and tools to successfully execute these complicated projects on a fixed-price basis.”

About EE&C

Black & Veatch’s EE&C Division, which provides engineering, procurement and construction services for power generation facilities worldwide, has been involved in more megawatts of power generation than any other company in the world. The division was ranked No. 3 in Power in ENR’s “Top Design Firms Sourcebook” for 2001 and No. 2 in Nuclear Power in the “ENR Contractors Sourcebook and Directory.”

About Black & Veatch

Black & Veatch Corporation is a global engineering, construction and consulting company specializing in infrastructure development in the fields of energy, water and information.

Founded in 1915, Black & Veatch serves its clients with conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, information technology, environmental, security design and consulting, and management consulting services. Headquartered in Kansas City, Mo., the employee-owned company has more than 90 offices worldwide. Black & Veatch is ranked 78th on the Forbes “500 Largest Private Companies in the U.S.” listing for 2002. The company’s Web site address is

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