German utilities E.ON AG (EOAN.XE) and Vattenfall Europe said Wednesday they have agreed on talks to improve the operational performances and safety record of two nuclear power plants that have been offline since 2007.

The discussions could result in E.ON taking over operational control of the power plants from Vattenfall, the companies said in a joint statement.

The reactors Kruemmel and Brunsbuettel are jointly owned by the two energy companies, but Vattenfall has operational control.

The power plants have been offline for the best part of three years following glitches. Vattenfall had been fiercely criticized in public by politicians and sector competitors over its handling and communications of the outages. On several occasions regional politicians had questioned Vattenfall's capability to responsibly operate the power plants.

Vattenfall and E.ON also said that the decision to discuss the possible optimization of the two power plants comes in response to "changes in Germany 's nuclear-energy laws".

The government earlier this year agreed to extend the operating lives of the country's 17 nuclear reactors. In return for longer operating lives utilities have to pay a tax on nuclear fuel rods for the next six years, contribute to a fund that promotes energy efficiency and renewable energy sources and guarantee investment to improve the safety of the nuclear reactors.

"In the months ahead, the two companies will conduct a thorough review, in particular of the technical situation and operating processes at the two facilities, and calculate the investments necessary to overhaul and update them," E.ON and Vattenfall said.

The companies intend to conclude the talks in the first half of 2011, they added.

E.ON and Vattenfall both own 50% in the 1.3 gigawatt reactor Kruemmel. The 806-megawatt Brunsbuettel reactor is 66.7% owned by Vattenfall, while E.ON owns the remaining 33.3%.

Vattenfall spokesman Stefan Mueller said that the company currently expects the Kruemmel reactor to resume power generation in the first quarter of 2011. Brunsbuettel is expected to be back online in the second half of 2011, he added.

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