EDF opposes Constellation sale to Exelon

• 13 years ago (2011-10-14)
• David Flin

North America 1021 Nuclear 659

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In the USA, EDF said in a pre-hearing testimony with the Public Service Commission that the proposed $7.9 billion sale of Baltimore’s Constellation Energy Group to Exelon of Chicago has “serious and negative ramifications.”

EDF said that the deal would create a serious conflict of interest, because Exelon is the largest owner of US nuclear plants, and would have only partial ownership of the fleet of Constellation Energy Nuclear Group, a joint venture between Constellation and EDF. EDF claim that without adequate safeguards, the deal creates strong incentives for Exelon to discriminate against the Constellation fleet in favour of its own. The joint venture could also lose autonomy and could be precluded from acquiring new generation capacity.

Exelon has disputed EDF’s assertions, and said that the deal was in the public interest. Christopher Crane, President and COO of Exelon, said that the company has agreed to additional safeguards to address concerns over market power.

The PSC is to start evidentiary hearings in late October, with a decision due by January 5.