BALTIMORE, Oct 09, 2010 (BUSINESS WIRE) -- Date of events noted in the release should be October 8 (sted today).
The corrected release reads:
Constellation Energy Releases Statement Regarding U.S. Department of Energy Loan Guarantee
Constellation Energy (NYSE: CEG) on October 8 informed the U.S. Department of Energy (DOE) that it cannot move forward with the loan guarantee process regarding UniStar Nuclear Energy's Calvert Cliffs 3 loan guarantee application because the proposed terms and conditions are unworkable.
In a letter sent to DOE, Constellation Energy said the cost of the loan guarantee that is calculated by the Office of Management and Budget (OMB) is unreasonably burdensome and would create unacceptable risks and costs for our company. There is a significant problem in the way OMB calculates the credit cost. After repeated unsuccessful attempts to resolve this issue with DOE and OMB, we no longer see a timely path to reaching a workable set of terms and conditions.
The letter represents the views of Constellation Energy. EDF, our partner in UniStar, is aware of our views. UniStar has not withdrawn its application for a federal loan guarantee and no decisions have been made regarding the future of Calvert Cliffs 3. With regards to Calvert Cliffs 3, this is a matter that will have to be discussed by Constellation Energy and EDF and taken under consideration by UniStar's Board of Directors. EDF has not yet informed Constellation Energy of its position related to the pending loan guarantee terms and conditions.
Constellation Energy remains steadfast that new nuclear power facilities are critical to the long-term economic, environmental and national security interests of the United States, which is why we have worked so hard for the past five years to make Calvert Cliffs 3 a reality. We are deeply disappointed that the loan guarantee process did not play out as we had hoped. We are extremely fortunate and grateful to have had a tremendous amount of support from our communities, labor, our state and county government, and our congressional delegation.
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 in the United States and Canada, 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 $15.6 billion in 2009.
We make statements in this press release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Constellation Energy
Lawrence McDonnell, 410-470-7433
Carim Khouzami, 410-470-6440
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