CORRECT: EDF Considers Dropping New Nuclear In Maryland -Source
December 15 2011 - 5:53PM
Dow Jones News
French state-controlled power behemoth Electricite de France SA
(EDF.FR) is considering dropping all plans for new nuclear
capacities in Maryland, following a proposed settlement between the
Maryland governor and EDF's U.S. partner, Constellation Energy
(CEG), a person familiar with the matter said Thursday.
"EDF is being side-lined here, nuclear is not even mentioned and
the group seriously mulls dropping any new projects to develop
nuclear" in Maryland, said a person familiar with EDF's
thinking.
Under an agreement announced Thursday by Maryland Gov. Martin
O'Malley, Exelon Corp. (EXC) and Constellation said they would
spend more than $1 billion in Maryland on projects in the state to
win approval for their $8 billion merger. O'Malley had previously
opposed the Exelon-Constellation merger. The deal also has faced
opposition from consumer groups and others.
The proposed settlement still requires approval by the Maryland
Public Service Commission and other officials.
The comments on EDF's thinking follow previous requests from the
French company to Maryland regulators to block the Exelon and
Constellation merger. EDF has struggled with its nuclear efforts in
Maryland despite earlier support from Maryland officials, who hoped
the nuclear project would boost the economy and create jobs.
EDF scaled back its nuclear ambitions in the U.S. after shale
gas emerged as a major competitor.
EDF bought half of Constellation's nuclear power business in
2008 for about $4.5 billion. In October 2010, EDF and Constellation
ended a separate joint venture, called UniStar, to develop new U.S.
nuclear power plants, after Constellation dropped out of an
application for a federal loan guarantee for Calvert Cliffs 3, the
partnership's first project. EDF retained the right to build that
project and two additional U.S. projects in exchange for $250
million in cash and stock.
But EDF has not announced a new partner for the venture, raising
doubts about its prospects.
- By Geraldine Amiel, Dow Jones Newswires, +33 1 40171767
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