The Center, founded in 1985, is an environmental organization dedicated to protecting the environment, enhancing human, animal and plant ecologies, promoting the efficient use of natural resources and expanding participation in the environmental movement.
Wednesday, October 27, 2010
Electricite de France & Constellation End Nuclear Partnership
Electricité de France SA (EdF) and Constellation Energy Group Inc. have agreed to end a joint venture to develop nuclear power plants together. The agreement allows EdF to continue pursuing the construction of a new reactor in Maryland and at Nine Mile Point and R.E. Ginna in New York. In exchange, Constellation Energy will receive $250 million in cash and stock. EDF's nearly 50% ownership stake in Constellation's existing nuclear power plants will not change.
The deal eliminates a contentious requirement under which EDF is required to buy 12 power plants— most of them coal-fired—from Constellation for as much as $2 billion. Under the deal, EDF will acquire Constellation's 50% ownership in UniStar for $140 million. EDF will transfer 3.5 million shares—valued at $110 million—it holds in Constellation to the Baltimore company. That will cut EDF's holdings in Constellation to an estimated 13.5 million shares, and EDF will no longer hold a seat on Constellation's board. (WSJ, 10/27/2010)