CEG Constellation Energy Grp. Common Stock

BALTIMORE, June 1 /PRNewswire-FirstCall/ -- Constellation Energy (NYSE:CEG) and Electricite de France (EdF) today announced that the two companies have signed a Memorandum of Understanding (MOU). Specifically, EdF and Constellation Energy's subsidiary, Constellation Generation Group, have agreed to work together toward an agreement allowing EdF to provide assistance to Constellation Energy as part of the development of the U.S. Evolutionary Power Reactor (EPR). "As the world's leading nuclear operator and developer of the first EPR in France, Electricite de France will facilitate the advancement and promotion of the EPRs as the technology of choice for nuclear fleets around the world," said Michael J. Wallace, executive vice president of Constellation Energy, president of Constellation Generation Group, and co-chief executive officer of UniStar Nuclear. "EdF's extensive technical expertise will also prove invaluable as we design, license, build and operate a fleet of U.S. EPR advanced nuclear power plants in North America." UniStar Nuclear is a joint enterprise between Baltimore-based Constellation Energy and Bethesda, Md.-based AREVA, Inc., that provides the business framework through which the first fleet of advanced nuclear power plants in America in nearly three decades will be developed and deployed. The U.S. EPR is a 1,600 megawatt reactor designed for America by AREVA, Inc. It is a standardized, advanced design derived from the EPR nuclear reactor currently being built in Europe. "With the passage late last year of the Energy Policy Act, the Bush Administration and Congress have helped secure America's energy future," Wallace said. "Their foresight and action continue to pave the way for companies like UniStar Nuclear to help bring about America's newest fleet of nuclear power plants." The technical assistance agreement that the companies will finalize in the coming weeks is likely to involve the exchange of engineers, documentation and assistance services that strengthen the input and experience base that the global fleet of EPRs brings to UniStar Nuclear in its goal to deploy the U.S. EPR. The agreement also allows for EdF and Constellation Energy to explore further areas in which they might jointly cooperate on new nuclear development opportunities in the United States. "The EPR is the only generation three plus advanced reactor design actually under construction in the world today," said George Vanderheyden, senior vice president of Constellation Generation Group, and president of UniStar Nuclear. "The insight gained from the construction, startup and operations experience of the global fleet will translate directly into increased efficiencies and greater certainty for UniStar Nuclear partners leading the resurgence of the U.S. nuclear power industry." EdF has long been an active participant in assisting with pressurized water reactor development in this country. EdF joined eight other energy companies and Constellation Energy, an early member, in NuStart Energy Development LLC. The consortium was created in 2004 to demonstrate the U.S. Nuclear Regulatory Commission's (NRC) new combined Construction and Operating License (COL) process, and to complete the design engineering of selected reactor technologies. EdF has also worked with the Nuclear Energy Institute, the Electric Power Research Institute and the Institute of Nuclear Power Operations, and participated in the utility reference plant design. The first EPR, under construction at Olkiluoto, Finland, is scheduled to commence operations by 2009. The second, in Flamanville, France, was approved by EdF in May and is scheduled for completion in 2012. "This global construction experience provides the strong foundation for a U.S. EPR fleet with real experience in constructing and operating an advanced nuclear power plant," said Vanderheyden. "This invaluable experience will no doubt improve the efficiencies of the U.S. fleet." Constellation Energy (http://www.constellation.com/), a FORTUNE 200 company with 2005 revenues of $17.1 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 more than 100 generating units located throughout the United States, totaling approximately 12,000 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. In less than 20 years, the EdF Group has acquired unequalled nuclear electricity generation resources - 58 reactors with generating capacity of 65.7 GW which raises France to the rank of the second largest nuclear electricity power generator in the world, behind the United States. Nuclear power provides over 85 percent of EdF's electricity production and its technological expertise is now a recognized benchmark throughout the world. EdF has a diversified mix of generation capacities of all energy types - fossil fuels (coal, fuel oil and gas) and renewable energy (hydraulic, solar, wind and biomass) - as well as nuclear. DATASOURCE: Constellation Energy CONTACT: Robert Gould, +1-410-234-7433, or Investors: Kevin Hadlock, +1-410-783-3647, both of Constellation Energy Web site: http://www.constellation.com/ Company News On-Call: http://www.prnewswire.com/comp/084087.html

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