CORRECTING and REPLACING Constellation Energy Releases Statement Regarding U.S. Department of Energy Loan Guarantee
October 09 2010 - 12:44AM
Business Wire
Date of events noted in the release should be October 8 (sted
today).
The corrected release reads:
Constellation Energy Releases Statement
Regarding U.S. Department of Energy Loan Guarantee
Constellation Energy (NYSE: CEG) on October 8 informed the U.S.
Department of Energy (DOE) that it cannot move forward with the
loan guarantee process regarding UniStar Nuclear Energy’s Calvert
Cliffs 3 loan guarantee application because the proposed terms and
conditions are unworkable.
In a letter sent to DOE, Constellation Energy said the cost of
the loan guarantee that is calculated by the Office of Management
and Budget (OMB) is unreasonably burdensome and would create
unacceptable risks and costs for our company. There is a
significant problem in the way OMB calculates the credit cost.
After repeated unsuccessful attempts to resolve this issue with DOE
and OMB, we no longer see a timely path to reaching a workable set
of terms and conditions.
The letter represents the views of Constellation Energy. EDF,
our partner in UniStar, is aware of our views. UniStar has not
withdrawn its application for a federal loan guarantee and no
decisions have been made regarding the future of Calvert Cliffs 3.
With regards to Calvert Cliffs 3, this is a matter that will have
to be discussed by Constellation Energy and EDF and taken under
consideration by UniStar’s Board of Directors. EDF has not yet
informed Constellation Energy of its position related to the
pending loan guarantee terms and conditions.
Constellation Energy remains steadfast that new nuclear power
facilities are critical to the long-term economic, environmental
and national security interests of the United States, which is why
we have worked so hard for the past five years to make Calvert
Cliffs 3 a reality. We are deeply disappointed that the loan
guarantee process did not play out as we had hoped. We are
extremely fortunate and grateful to have had a tremendous amount of
support from our communities, labor, our state and county
government, and our congressional delegation.
About Constellation Energy
Constellation Energy (www.constellation.com) is a leading
supplier of energy products and services to wholesale and retail
electric and natural gas customers. It owns a diversified fleet of
generating units located in the United States and Canada, totaling
approximately 9,000 megawatts of generating capacity, and is among
the leaders pursuing the development of new nuclear plants in the
United States. The company delivers electricity and natural gas
through the Baltimore Gas and Electric Company (BGE), its regulated
utility in Central Maryland. A FORTUNE 500 company headquartered in
Baltimore, Constellation Energy had revenues of $15.6 billion in
2009.
Forward-Looking Statements
We make statements in this press release that are considered
forward-looking statements within the meaning of the Securities
Exchange Act of 1934. These statements are not guarantees of our
future performance and are subject to risks, uncertainties and
other important factors that could cause our actual performance or
achievements to be materially different from those we project. For
a full discussion of these risks, uncertainties and factors, we
encourage you to read our documents on file with the Securities and
Exchange Commission, including those set forth in our periodic
reports under the forward-looking statements and risk factors
sections. Except as required by law, we do not intend to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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