Subscribe
Community
NRC OKs Constellation, EDF deal
PSC decision still up in the air
Wednesday, Oct. 14, 2009
E-Mail This Article
The Nuclear Regulatory Commission approved the transfer of five Constellation Energy nuclear reactor operating licenses to Constellation Energy Nuclear Group and EDF Development on Friday, leaving approval from the state Public Service Commission as the lone remaining hurdle to a merger amped in political theater.
The NRC's decision would allow Constellation to transfer the operating licenses of the two Calvert Cliffs Nuclear Power Plant reactors along with the two at the Nine Mile Point Nuclear Station in Oswego, N.Y., and one at the R.E. Ginna Nuclear Power Plant in Ontario, N.Y., to the proposed CENG-EDF joint venture, according to an NRC release.
When considering the transfers, the NRC determined the new ownership structure created by the merger would be able to adequately finance its plans and future decommissioning without adversely affecting the public's health and safety or current onsite staff, NRC spokesman Neil Sheehan said.
"We've run this through our process, given it a very close examination and determined there is no basis to not approve it," Sheehan said.
Sheehan added that the deal would also meet federal regulations, which prohibit the recipient of a license transfer from being owned or controlled by a foreign entity. While the proposed deal is a joint venture, Constellation would remain the owner of record, Sheehan said. The NRC placed several conditions to ensure the licenses remain free of foreign control, including requirements that CENG's top officials and half its board members be U.S. citizens.
"It's certainly a big step," said Constellation spokesman Rob Gould. "We're very pleased to have received the NRC approval. Now we'll continue to work closely with the process of the Maryland Public Service Commission [which] is ongoing."
The proposed merger has now gotten the green light from all necessary federal agencies, including the Federal Energy Regulatory Commission and Committee on Foreign Investment in the United States, and the New York Public Service Commission, according to a Constellation release.
Approval has not come so easily in Maryland, where Gov. Martin O'Malley (D), skeptical of the effect the deal might have on ratepayers, has stood in opposition.
Conversely, the deal has been championed by local politicians eager for the tax revenue and jobs promised by the construction of a third Calvert Cliffs reactor. Constellation has said the merger is necessary to get the already-approved reactor built.
EDF Development is a U.S. subsidiary of …lectricité de France, a French utility. Under the deal, EDF Development would purchase 49.99 percent of CENG, with Constellation retaining the remaining 50.01 percent.
"Completing this nuclear joint venture is critical to the proposed construction of a new nuclear unit at Constellation Energy's Calvert Cliffs Nuclear Power Plant, which would represent one of the largest industrial development projects in Maryland, creating 4,000 construction jobs, 400 permanent positions, and enough new, clean energy to power 1.3 million homes," the two companies said in a joint release.
Constellation is hopeful the PSC will issue its order as soon as possible, Gould said.
Along with the reactor licenses, the NRC also allowed the operating license of the Calvert Cliffs Independent Spent Fuel Storage Installation to be transferred.
