DOW JONES NEWSWIRES
Constellation Energy (CEG) informed the U.S. Department of
Energy (DOE) on Friday that it won't move forward with its loan
guarantee application for the UniStar Nuclear Energy's Calvert
Cliffs 3 nuclear power plant because the proposed terms and
conditions are "unworkable," Constellation announced Saturday.
The Calvert Cliffs 3 project was set to be developed in Calvert
County, Md., according to the UniStar Nuclear Energy website.
In a letter sent to the DOE, Constellation said the cost of the
loan guarantee is "unreasonably burdensome."
"There is a significant problem in the way [the Office of
Management and Budget] calculates the credit cost," according to
the Constellation announcement. "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."
Electricite de France (EDF.FR), Constellation's partner in the
project, called the announcement disappointing in a statement
released Saturday.
"For the past year, EDF has made huge investments of time and
resources on the federal loan guarantee process with the Department
of Energy for CC3," a spokeswoman for the company said.
"Constellation knows that we were at the finish line with the
Department of Energy and were making significant progress.
Constellation has withdrawn from CC3 in spite of our repeated
efforts to substantially decrease their exposure and risk to the
project.
"CC3 is of monumental importance to Maryland," the EDF
spokeswoman added. "The development of CC3 would generate 4,000 new
jobs and bring significant financial investment to Maryland...While
the future of CC3 is unclear, EDF remains committed to pursuing new
nuclear in the U.S."
Earlier Friday, the DOE awarded a loan guarantee to the builders
of what should be the world's largest wind farm, in Oregon. The
department is providing the guarantee under the stimulus program
and the project is expected to create 400 construction jobs,
followed by 35 permanent jobs on site, Dow Jones reported
Friday.
-By Dow Jones Newswires Staff; 212-416-2800;
copydesk@dowjones.com