UniStar Companies First to Procure Components for First Potential U.S. Nuclear Power Plant in Nearly Three Decades
August 03 2006 - 10:00AM
PR Newswire (US)
BALTIMORE, Aug. 3 /PRNewswire/ -- Constellation Energy (NYSE:CEG)
and AREVA, today announced that through their jointly developed
UniStar business model they have entered into agreements to procure
the long lead materials necessary to construct the first potential
U.S. nuclear power plant of a planned U.S. EPR fleet. Of the
several U.S. companies considering the construction of new nuclear
plants, Constellation Energy and AREVA, through the UniStar
business model, are the first to procure the necessary raw
materials. This procurement includes 44 heavy forgings for a
planned U.S. Evolutionary Power Reactor (EPR) to be supplied by
AREVA. The forgings -- needed for the reactor pressure vessel and
steam generators -- will be produced at international facilities.
The completed forgings will be manufactured into final components
at BWX Technologies' (BWXT) facility in Mount Vernon, Ind., or
AREVA's facility in Chalon-St. Marcel. Maryland-based AREVA Inc.
partnered with Baltimore-based Constellation Energy last fall to
develop the UniStar business model to design, license, develop,
construct and deploy at least 4 U.S. EPRs in North America. "This
contract tangibly demonstrates the UniStar companies' and UniStar
model's strong commitment to building and deploying the next
generation of nuclear power plants in America," said Michael J.
Wallace, co-chief executive officer of UniStar Nuclear, executive
vice president of Constellation Energy, and president of
Constellation Energy subsidiary, Constellation Generation Group.
"The Bush Administration and Congress have made this commitment
possible by developing, passing and carrying out the Energy Policy
Act of 2005. This important legislation is a real service to the
nation, and enables UniStar Nuclear and future partners to play an
important role in increasing the nation's supply of reliable
electricity in the future." In making today's announcement,
Constellation Energy has taken yet another step, the funding for
which is included in Constellation Energy's current capital plan.
It also sets the stage for more substantial financial commitments
which could be made in the coming years for the potential
construction of a planned fleet of U.S. EPRs. The Nuclear Energy
Institute reports 12 energy companies intend to file license
applications for more than 18 new reactors by 2009. Currently,
these types of heavy forgings are only available through facilities
in France and Japan. Increased activity in the nuclear sector may
present challenges in the supply chain's ability to meet growing
demand for major components. Wallace said the decision to act first
addresses infrastructure concerns. "By making the early investments
and entering into essential agreements necessary to procure
long-lead materials for the first potential U.S. EPR, we are
building another layer of certainty into the UniStar business model
by significantly reducing the possibility of delays due to
potential congestion in the global nuclear supply chain."
Constellation Energy and AREVA, through the UniStar business model,
continue to seek opportunities to invest in the redevelopment of
U.S. nuclear manufacturing capabilities. UniStar recently announced
an agreement between AREVA Inc. and BWXT to provide major
components for the planned U.S. EPR fleet through BWXT's
state-of-the-art manufacturing facility on the Ohio River in Mount
Vernon, Ind. According to UniStar Nuclear co-chief executive
officer and chief executive officer of AREVA, Inc., Tom
Christopher, "we are taking advantage of our global strength and
taking concrete action toward realizing our vision for a fleet of
U.S. EPRs to be made in America by Americans and for Americans."
Constellation Energy and AREVA, through the UniStar business model,
continue to pursue their disciplined, value-driven approach to
licensing and building a potential fleet of U.S. EPR advanced
nuclear power plants in the United States. The innovative business
model, coupled with the only advanced technology currently being
built around the globe, increases certainty for investors and
operators looking to avoid first-of-a-kind risk. "The UniStar
business model follows a risk-managed approach to new nuclear
plants," said George Vanderheyden, president of UniStar Nuclear.
"Well-timed decisions along the path to new nuclear builds are
essential. We continue to work in innovative ways with the Nuclear
Regulatory Commission toward mutual success on the licensing path.
Acting now on large forgings maintains our strong position to be
able to deploy the safest, most secure, most efficient fleet of
advanced nuclear power plants in North America." UniStar Nuclear
(http://www.unistarnuclear.com/) is headquartered in Annapolis, Md.
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. As the leading
U.S. nuclear supplier and a key player in the electricity
transmission and distribution sector, AREVA's 5000 American
employees are committed to serve the nation and pave the way for
the future of the electricity market. The company's commitment to
America is reflected in its initial investment of $200 million in
the U.S. EPR. With 40 locations across the nation and $1.8 billion
in revenues in 2005, AREVA combines homegrown leadership, access to
worldwide expertise and a proven track record of performance. In
the U.S. and in over 100 countries around the world, AREVA is
engaged in the 21st century's greatest challenges making energy
available to all, protecting the planet and acting responsibly
towards future generations. AREVA, Inc. is headquartered in
Bethesda, Md. Visit us at http://www.us.areva.com/. DATASOURCE:
UniStar Nuclear CONTACT: Penny Phelps of AREVA, +1-301-841-1600; or
Robert L. Gould of Constellation Energy, +1-410-234-7433 Web site:
http://www.us.areva.com/ http://www.constellation.com/
http://www.unistarnuclear.com/
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