CEG joint nuclear venture advances

After federal approval, deal awaits Maryland regulators

Constellation Energy Group's proposed joint nuclear venture cleared a big regulatory hurdle Friday, getting the green light from the federal Nuclear Regulatory Commission.

The NRC's approval of Constellation's $4.5 billion deal to sell half its nuclear power business to French utility Electricite de France leaves only one more test that the companies had not expected to face: a review by Maryland regulators.

Last week, the Public Service Commission extended hearings on the transaction because of wrangling over the agreement's final terms. That move likely will push back the panel's self-imposed Oct. 16 deadline to make a decision. Additional hearings are scheduled for next week.

Constellation and EDF had hoped to complete the deal by the third quarter. They have extended their deadline to close the transaction to Oct. 30, and either party can extended it to Dec. 17.

Constellation spokesman Rob Gould said the company is hopeful that the PSC will issue a final order as soon as possible.

The approval allows Constellation to transfer operating licenses for its nuclear reactors, including Southern Maryland's Calvert Cliffs unit, to a new ownership structure created by the joint venture. The license transfer also includes several conditions, including having half of the joint venture's board of directors be U.S. citizens, to prevent foreign control.

Federal law prohibits full ownership or control of a U.S. nuclear plant by a foreign entity.

"EDF's investment in Constellation Energy's nuclear assets represents a unique opportunity to deliver significant economic, energy and environmental benefits to a broad array of stakeholders and would be a powerful catalyst for new nuclear development in the United States," the two companies said in a joint statement.

The deal previously received approval from the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the United States.