Maryland PSC Approves Constellation/EdF Nuclear Merger

Congratulations

The Maryland Public Service Commission (PSC) approved Constellation Energy Group's (CEG) deal to sell half (49.9%) of its existing nuclear fleet to Electricite de France on Oct 30. CEG's board of directors approved the PSC’s conditions regarding the joint venture on the same day. The PSC imposed several conditions in the 54-page ruling, including:

A one-time $100 credit each for customers of Baltimore Gas & Electric Co totaling $110.5 million
1) Constellation investing $250 million in cash in BGE by June 30

2) Not receiving dividends from BGE if the utility's equity level falls below 48 percent, and

3) Delaying requests for delivery rate increases

The PSC directed the companies to inform the panel no later than Nov. 6 on whether they plan to close the transaction. The approval of the joint venture is a significant step toward the development of CEG's proposed Calvert Cliffs 3 nuclear power plant. The Center has enthusiastically supported the joint venture and construction of CC3 (3rd nuclear power plant at Calvert Cliffs).

The PSC's basic intent is to protect the 1.1 million BGE ratepayers by upholding a law that requires this deal to provide 'benefits and no harm' to ratepayers.

Other CC3 accomplishments this year include:

Selection by the Department of Energy this year to enter the final phase of due diligence for federal loan guarantees,

Announcement of the Project Labor Agreement (PLA),

Receiving a final Certificate of Public Convenience and Necessity (CPCN) from the Maryland PSC.

(Unistar Update, Balt Sun, 10/20/09)