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BALTIMORE, Jun 29, 2009 (BUSINESS WIRE) -- The Maryland Public Service Commission (PSC) issued a key approval last Friday for a proposed new nuclear energy facility at Calvert Cliffs in southern Maryland, a project that would provide 1,600 megawatts of new, emissions-free electricity, stimulate the region's economy and shape a more secure energy future for the state.
The PSC issued the Certificate of Public Convenience and Necessity (CPCN) after completing a comprehensive, 18-month review that included multiple public hearings. The application for the proposed nuclear energy facility was submitted by UniStar Nuclear Energy, a strategic joint venture of Constellation Energy (NYSE: CEG) and EDF Group, the global leader in nuclear power.
"The PSC approval is critical to Maryland's energy future and we applaud the commission for recognizing the vital environmental, economic and energy benefits of a third nuclear energy facility at Calvert Cliffs and the significant benefits it will create for businesses and residents across the state of Maryland," said Michael J. Wallace, vice chairman and chief operating officer of Constellation Energy and chairman of UniStar Nuclear Energy. "It's important to also recognize that completing the proposed EDF nuclear joint venture is essential to Constellation Energy being able to work through the next set of challenges to develop this clean energy opportunity for Maryland. It is unrealistic to think that we will be able to raise the capital required for a project of this magnitude if the perception persists that Maryland's business, regulatory and political environment is hostile to such transactions. Simply put, Constellation Energy's potential investment in a new nuclear facility at Calvert Cliffs 3 and the successful close of the Constellation-EDF joint nuclear venture are inseparable."
The CPCN is required before any construction work can begin. It addresses a range of potential environmental and reliability impacts of the proposed new reactor, including air, water, wetlands, cultural and historic impacts. Overwhelming public support for the proposed nuclear facility was voiced during PSC public hearings held after UniStar submitted the application in November 2007 and the project has gained considerable momentum in recent months. A PSC hearing examiner issued a proposed order on April 28, and the full commission issued a final order today. UniStar also is seeking federal regulatory approval through the U.S. Nuclear Regulatory Commission.
UniStar proposes to build a fleet of U.S. EPR reactors, an advanced technology provided by Areva, at selected sites throughout the United States.
On May 19, the Calvert Cliffs project was selected by the U.S. Department of Energy (DOE) as one of four projects to enter final due diligence and detailed negotiations for a portion of $18.5 billion in federal loan guarantees for advanced nuclear projects. Receipt of a conditional loan guarantee commitment by the end of 2009 would position UniStar to make a final decision to proceed with the project.
On June 1, the Building and Construction Trades Department (BCTD), AFL-CIO, the National Construction Alliance II and all affiliated international unions, and Bechtel Construction Company (Bechtel), announced they had reached a Project Labor Agreement to supply labor for the Calvert Cliffs 3 project.
A 1,600-megawatt reactor is proposed to be built next to Constellation Energy's existing Calvert Cliffs nuclear energy facility. It would represent one of the largest economic and industrial development projects in Maryland's history, and would provide enough clean, safe, reliable and emission-free electricity to power 1.3 million Maryland homes. It would play a meaningful role in helping to stimulate the region's economy and manufacturing sector through the addition of 4,000 construction, engineering and craft jobs and approximately 400 permanent positions. Finally, a new reactor at Calvert Cliffs would help Maryland and the nation meet environmental targets while adding needed round-the-clock capacity to meet growing demand for carbon-free energy.
About Constellation Energy
Constellation Energy (www.constellation.com) is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity, and is among the leaders pursuing the development of new nuclear plants in the United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $19.8 billion in 2008.
SOURCE: Constellation Energy
Constellation Energy
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