EDF pulls out of US nuclear business

2 August 2013

The world's largest nuclear generator EDF began its withdrawal from the US nuclear scene at the end of July.The company, which is majority-owned by the French government, announced that it was pulling out of the Constellation Energy Nuclear Group (CENG), its joint venture with Exelon Corp, citing market changes brought on by cheap natural gas in the US market.

CENG operates three nuclear power plants in New York and Maryland: the 577 MW R.E. Ginna plant in Ontario, the two-unit Nine Mile Point plant in Scriba, and the two-unit Calvert Cliffs plant in Lusby, Maryland.The company has announced that these will be operationally integrated into the Exelon Generation nuclear fleet over the next nine months.

Under terms of the agreement, the CENG plant operating licenses will be transferred to Exelon; Exelon will integrate the CENG fleet under its management model; and EDF will retain an option to sell its CENG stake to Exelon at fair market value between 2016 and 2022. EDF will also receive an immediate dividend of $400 million.

Exelon Generation is the largest operator of commercial nuclear plants in the United States, with 17 reactors in 10 locations. EDF has 58 reactors with one under construction in France. CENG was formed as a joint venture between Constellation Energy and EDF in 2009 to hold and oversee operations of the three Constellation nuclear plants. Exelon, based in Chicago, and Constellation, based in Baltimore, completed their merger in March 2012.Through that union, Exelon became EDF's partner.



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