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CEG to Act Quickly on EDF Deal: Date Unclear on $100 Credit to BGE Clients, New Md. HQ
Tuesday, November 03, 2009 10:54 AM


(Source: The Baltimore Sun, Maryland)trackingBy Hanah Cho, The Baltimore Sun

Nov. 3--Constellation Energy Group and its nuclear joint venture partner, Electricite de France, announced Monday that they will move quickly to close their $4.5 billion nuclear joint venture, though the deal leaves some unanswered questions.

Among them: when each of Constellation's Baltimore Gas and Electric residential customers will receive a one-time $100 credit, one of several conditions imposed by Maryland energy regulators last week.

"We are analyzing the order, and the commission's requirements relating to the customer credit, and will announce our plans just as soon as we complete that process," Constellation spokesman Rob Gould said.

Other issues left unresolved include the location of EDF's new U.S. headquarters in Maryland, the scope of Constellation's future charitable giving, and the construction of a visitor center and new nuclear unit at Calvert Cliffs.

On Friday, the state Public Service Commission approved Constellation's $4.5 billion deal to sell half of its nuclear power business to EDF. But regulators added conditions such as the ratepayer credit totaling $110.5 million and measures to protect BGE from future financial troubles of its parent company.

The commission directed the company to implement the credit before March 30 to offset winter heating bills.

Constellation said it has received board approval to move forward with the transaction "as quickly as possible so that we can begin to deliver the many benefits of this investment to all stakeholders across the state."

In a separate statement, Paris-based EDF said it has chosen Maryland to be at the center of its nuclear growth efforts in the United States. "EDF is eager to be a strong corporate citizen in Maryland, and looks forward to moving its U.S. headquarters to the state."

EDF said it expects to make a decision shortly on a location. EDF's Washington office has 25 employees; they would move to the company's new U.S. headquarters in Maryland.

While neither Constellation nor EDF has made a definite decision to build the proposed third nuclear unit at Calvert Cliffs, the two companies have pledged to pursue the project.

The companies made the fate of the nuclear plant the centerpiece of a campaign extolling the joint venture's benefits. They had warned that the new unit would not move forward if the PSC rejected or put excessive conditions on the deal.

So far, the proposed nuclear project has received approval by the PSC and has been chosen by the U.S. Department of Energy for "final due diligence" for a federal loan guarantee considered key to financing the unit.




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