Exelon takes title of Constellation plants2 April 2014 by Will Dalrymple
Following their $7.9 billion merger in 2012, Exelon has finally officially taken over the licences of Constellation Energy's Calvert Cliffs 1&2, Nine Mile Point 1&2 and Ginna nuclear power plants, plus spent fuel storage.
These units expands Exelon's fleet to 23 units at 14 plants in Illinois, Pennsylvania, Nebraska, New York, New Jersey, and Maryland. The 23 units have the capability to generate more than 22,000 MW.
Until now, Constellation Energy and Exelon Generation had continued to operate autonomously as separate companies, Exelon said.
According to an Nuclear Regulatory Commission (NRC) statement, the licence transfer will not affect the facilities, and on-site plant staff will remain 'essentially unchanged.' Exelon called the changes an 'organizational and operational realignment, not a purchase or transfer of assets.' (An 18% stake in Nine Mile Point 2 by Long Island Power Authority is not affected by the deal).
Michael J. Pacilio, Exelon Nuclear's president and chief nuclear officer, will lead the newly expanded fleet. Maria G. Korsnick will remain chief nuclear officer of CENG. Exelon senior executive vice president and chief strategy officer, William A. Von Hoene, Jr., also becomes chairman and CEO, CENG.
Exelon owns 50.01% of Constellation Energy Nuclear Group, and EDF Inc, a subsidiary of the French utility, owns 49.99%. Constellation Energy Group was formed as a joint venture between Constellation Energy and EDF in 2009.
As agreed in July 2013, EDF agreed to hand over operational control of the Constellation reactors to Exelon. As a result, it has received EUR 300 million ($400 million) financed by Exelon, and an option to sell its holding in Constellation Energy Nuclear Group at market value between January 2016 and June 2022.
Photo: Nine Mile Point (Credit: © Constellation Energy Group, Inc. 2008)