EnergySolutions Announces Closing of Zion Nuclear Decommissioning Project (ES)

EnergySolutions

announced it has reach an agreement to close on its contract to decommission the Zion, IL nuclear power plant for Exelon

. JP Morgan believes the Zion project could generate $1 billion in revenue for EnergySolutions. JP Morgan said, "Although the Zion agreement was initially struck in late 2007, the project was delayed when the decommissioning trust fund supporting the project was impacted by severe market declines in 2008. We believe the trust fund has since recovered substantial ground along with the market, enabling ES to close on the contract. Although ES may have to demonstrate successful execution for a period of time before additional license stewardship agreements follow, the agreement should bode well for ES’s growth prospects." EnergySolutions is rated Neutral by JP Morgan.