EDF seeks to modify Constellation partnership

• 13 years ago (2010-10-15)
• Junior Isles

Europe 1061 North America 996 Nuclear 639

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French state-owned power company Electricite de France is ready to move forward alone if necessary to build a third nuclear reactor at Calvert Cliffs in Maryland, according to a company executive.

Thomas Piquemal, EDF's executive vice president of finance, wrote to Constellation Energy Group Inc. that EDF is prepared to immediately purchase all of Constellation's interest in the two companies' joint venture UniStar Nuclear.

EDF, which bought nearly half of Constellation's nuclear operation about two years ago, would then move forward with the development phase of the project entirely on its own with plans to bring in a new US partner later.

Constellation announced last week that it would not move forward with the proposal over risks linked to the high cost of a $7.5 billion loan guarantee.

"We are writing to you because, given what is at stake, we feel an obligation to explore every reasonable avenue to keep the prospects of this proposal alive," Piquemal wrote to Michael Wallace, Constellation's chief operating officer.

EDF also is again presenting a proposal made last month to assume 100 per cent of the risk in developing the third reactor until construction begins.

Constellation said in an e-mailed statement that it "looks forward to discussing the details."