News Release —October 27, 2005
Constellation Energy Seeks Combined Construction and Operating License From Nuclear Regulatory Commission
Next General of Nuclear Power Moves One Step closer to Reality
WASHINGTON, October 27, 2005 –Constellation Energy (NYSE: CEG) today announced its intent to file with the Nuclear Regulatory Commission (NRC) for a combined construction and operating license (COL) for the next generation of nuclear power plants. This is the first step in a multi-phase process that could ultimately lead to the development and deployment of its first nuclear power plant in more than 30 years. Sites under consideration include the company's Calvert Cliffs Nuclear Power Plant and the Nine Mile Point Nuclear Station. Final site selection is expected by early next year.
The development and deployment will be done under the auspices of UniStar Nuclear, a joint venture between Constellation Energy and AREVA Inc. that brings together an experienced nuclear fleet operator and owner and a preeminent nuclear reactor vendor. The U.S. EPR, a 1,600 megawatt evolutionary power reactor, will be the technology of choice for all UniStar Nuclear plants.
“Constellation Energy and AREVA created the UniStar Nuclear business framework with the intent to develop and deploy new nuclear power plants in North America,“ said Michael J. Wallace, co-chief executive of UniStar Nuclear and executive vice president of Constellation Energy. “While no decision has been made on specific site locations, this is the next logical step in the process.“
Constellation Energy and AREVA created the UniStar Nuclear business framework with the intent to develop and deploy new nuclear power plants in North America,“ said Michael J. Wallace, co-chief executive of UniStar Nuclear and executive vice president of Constellation Energy. “While no decision has been made on specific site locations, this is the next logical step in the process.“
“The fleet approach that UniStar Nuclear is taking generates significant cost savings and efficiencies during their construction and operations,“ said Thomas A. Christopher, co-chief executive officer of UniStar Nuclear and CEO of AREVA Inc. “Standardized plants also create an unprecedented degree of certainty in operations and allow operators to move from plant to plant,“ he said.
The U.S. EPR is based on AREVA's advanced nuclear power plant and represents a new standard in nuclear plant safety, with four separate safety systems, each of which is capable of performing the entire safety function for the reactor. Two such reactors are planned for Europe, with one already under construction in Finland.
AREVA, as prime contractor to any potential new nuclear project under the UniStar fleet model, would provide the nuclear reactor and all support systems, instrumentation and control system and the initial load of nuclear fuel. As locations are firmed up, it is envisioned that Constellation Energy would operate the proposed fleet of U.S. EPRs and hold the plant's operating licenses.
UniStar Nuclear (http://www.unistarnuclear.com) is headquartered in Annapolis, Md.
Constellation Energy (http://www.constellation.com), a FORTUNE 200 company based in Baltimore, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and energy companies. It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. In 2004, the combined revenues of the integrated energy company totaled $12.5 billion.
As the leading U.S. nuclear supplier and a key player in the electricity transmission and distribution sector, AREVA's 6,500 American employees are committed to serve the nation and pave the way for the future of the electricity market. The company's commitment to America is reflected in its initial investment of $200 million in the U.S. EPR. With 40 locations across the nation and more than $2 billion in revenues in 2004, AREVA combines homegrown leadership, access to worldwide expertise and a proven track record of performance. In the U.S. and in over 100 countries around the world, AREVA is engaged in the 21st century's greatest challenges making energy available to all, protecting the planet and acting responsibly towards future generations. AREVA Inc. is headquartered in Bethesda, Md. Visit us at www.us.areva.com