News Release —November 15, 2007
UniStar Nuclear Energy Seeks Maryland Public Service Commission Approval for New Nuclear Facility at Calvert Cliffs
Additional generating capacity would help Mid-Atlantic region, including Maryland, meet future energy demand through clean, economic powert
BALTIMORE, November 15, 2007 – UniStar Nuclear Energy (UNE), a joint venture between Constellation Energy (NYSE: CEG) and The EDF Group (EDF), has submitted an application to the Maryland Public Service Commission (PSC) for a Certificate of Public Convenience and Necessity (CPCN) for the potential construction of a new nuclear unit at Constellation Energy's Calvert Cliffs Nuclear Power Plant in Southern Maryland.
While UNE has not made a final decision to build this new advanced-design reactor at Calvert Cliffs, it has submitted the CPCN to the PSC as a step toward potential construction of a non-greenhouse gas emitting, base-load, 1,600-megawatt generating facility to meet increasing energy demand in the Mid-Atlantic region, and in particular, the state of Maryland.
"A third reactor at our high-performing Calvert Cliffs site offers the potential for an economic and environmentally sound means to provide additional base-load electricity to meet anticipated growth, both regionally and within the state of Maryland," said Michael J. Wallace, executive vice president, Constellation Energy and chairman, UNE. "Given the extreme volatility of energy prices worldwide and the significant environmental costs associated with new and anticipated regulation governing coal-fired generation, we believe nuclear energy affords our nation the most economic and environmentally friendly alternative to meet what will no doubt continue to be increasing demand for energy."
Wallace noted the ultimate decision to build a third reactor at Calvert Cliffs will not be made until the overall economics and risks associated with the project are better defined. Factors include the availability and cost of federal loan guarantees, and state and local fiscal policies that affect the tax treatment of the proposed plant.
In addition to potential third reactor at Calvert Cliffs, Constellation Energy's Nine Mile Point nuclear facility in upstate New York also is under consideration by UNE as an attractive location for the first of four advanced design reactors using AREVA Inc.'s U.S. Evolutionary Power Reactor (EPR) technology. UNE announced plans in July 2007 to develop, own and operate a fleet of U.S. EPR's, which use an advanced design technology featuring additional redundant safety systems and higher efficiency.
The CPCN submittal is yet another step in the regulatory process, which also provides opportunities for public comment. The CPCN application notes the proposed Calvert Cliffs reactor is supported by the Calvert County (Maryland) Board of County Commissioners, which cited "trust in the regulatory process and oversight and Constellation Energy's commitment to safety and environmental stewardship."
The board estimates a third nuclear unit at Calvert Cliffs would add $20 million in annual tax revenue, which could be used to fund schools, roads, law enforcement and police and fire services.
UNE is requesting a PSC decision on the CPCN application by December 2008 to pave the way for preliminary, non-safety-related work that can be completed prior to required federal approvals.
The application notes that a third reactor at Calvert Cliffs would use a hybrid cooling tower designed to eliminate any visible water plume from the tower itself.
In parallel with state regulatory reviews, UNE is seeking approval from the U.S. Nuclear Regulatory Commission (NRC) to license and operate a proposed third unit. UNE submitted a partial Combined License Application to the NRC in July 2007 and plans to submit the remainder of the application by March 2008.
UNE (www.unistarnuclear.com), based in Baltimore, is powering the nuclear renaissance in North America through industry leadership, disciplined business practices and effective risk-management. UNE provides the licensing, construction and operating services to support the expansion of clean, safe and sustainable nuclear energy in the United States.
About Constellation Energy
Constellation Energy (www.constellation.com), a FORTUNE 125 company with 2006 revenues of $19.3 billion, 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 utilities. It owns a diversified fleet of 78 generating units located throughout the United States, totaling approximately 8,700 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.
About EDF Group
The EDF Group, one of the leaders in the energy market in Europe, is an energy specialist that is active in all the businesses of electricity: production, transport, distribution, energy supply and trading. The Group is the leading electricity producer in Europe. In France, it has mainly nuclear and hydraulic production facilities where 95 percent of the electricity output involves no CO2 emissions. EDF operates over 1,200,000 km of low and medium voltage overhead and underground electricity lines and around 100,000 km of high and very high voltage networks. The Group is involved in supplying energy and services to close to 40 million customers around the world, including more than 28 million in France. The Group generated consolidated sales of euro 58.9 billion in 2006, of which 42 percent was in Europe excluding France. Net income (Group share) stood at euro 5.6 billion, with net income from ordinary operations at euro 4.2 billion. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index.