The three commercial nuclear power plants operated by the Constellation
Energy Nuclear Group (CENG) in New York and Maryland will be
operationally integrated into the Exelon Generation nuclear fleet over
the next nine months, CENG co-owners announced today.
The consolidation of the two commercial U.S. nuclear fleets includes
transferring the operating licenses of the plants to Exelon Generation,
Exelon and Électricité de France (EDF) said in a joint announcement.
“This is a logical step forward in the overall integration of Exelon and
Constellation following our 2012 merger,” said Michael Pacilio,
president and chief nuclear officer of Exelon Nuclear, the division that
operates the company’s commercial nuclear fleet. “CENG is a strong
nuclear operator with excellent results and safety performance that fits
well with our existing operations. This consolidation will benefit both
Exelon and our partner EDF and allows us to take advantage of additional
synergies and streamlining.”
Under the terms of the agreement, the CENG plant operating licenses will
be transferred to Exelon; Exelon will integrate the CENG fleet under its
management model; Exelon will lend $400 million to CENG to support a
special dividend to EDF; and EDF will retain an option to sell its CENG
stake to Exelon at fair market value between 2016 and 2022.
CENG will remain a legal entity governed by a board of directors
comprising five EDF and five Exelon board members. Exelon will continue
to own 50.01 percent of CENG, EDF 49.99 percent. CENG’s chief nuclear
officer Maria Korsnick will become acting chief executive officer of
CENG in addition to her CNO role.
Exelon Generation is the largest operator of commercial nuclear plants
in the U.S., with 17 reactors in 10 locations. EDF is the world’s
largest nuclear operator, with 58 reactors with one under construction
in France. Following the CENG consolidation, Exelon Generation will
operate 22 nuclear units at 13 locations in Illinois, Pennsylvania, New
York, New Jersey and Maryland, with a total owned generating capacity of
19,165 megawatts and employ more than 11,000 workers.
The three CENG plants include five reactors capable of generating more
than 3,900 megawatts at full power (a megawatt is a million watts). They
include:
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R.E. Ginna Nuclear Power Plant in Ontario, NY, a single 577-megawatt
pressurized water reactor.
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Nine Mile Point Nuclear Station in Scriba, NY, two boiling water
reactors totaling 1,595 megawatts.
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Calvert Cliffs Nuclear Power Plant in Lusby, Md., two pressurized
water reactors totaling 1,753 megawatts.
An application to transfer the operating licenses from CENG to Exelon
will be submitted to the NRC within days. Review and approval typically
requires six to nine months.
CENG was formed as a joint venture between Constellation Energy and EDF
in 2009 to hold and oversee operations of the three Constellation
nuclear plants.
Exelon, based in Chicago, and Constellation, based in Baltimore,
completed their merger on March, 12, 2012. Through that union, Exelon
became EDF’s partner and also the leading U.S. competitive energy
provider, with one of the cleanest and lowest-cost power generation
fleets and largest retail customer bases in the nation.
Exelon Corporation (NYSE: EXC) is the nation’s leading competitive
energy provider, with 2012 revenues of approximately $23.5 billion.
Headquartered in Chicago, Exelon has operations and business activities
in 47 states, the District of Columbia and Canada. Exelon is one of the
largest competitive U.S. power generators, with approximately 35,000
megawatts of owned capacity comprising one of the nation’s cleanest and
lowest-cost power generation fleets. The company’s Constellation
business unit provides energy products and services to approximately
100,000 business and public sector customers and approximately 1 million
residential customers. Exelon’s utilities deliver electricity and
natural gas to more than 6.6 million customers in central Maryland
(BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).
Copyright Business Wire 2013