US, French nuclear power plant financing hits snag
Constellation Energy announced Saturday it was unable to obtain a workable US loan guarantee for its new generation Calvert Cliffs 3 nuclear power plant in Maryland with its partner Electricite de France.
The US power company said it would have to discuss the future of Calvert Cliffs 3 with its partner EdF, which has not yet informed Constellation Energy of its position on the loan guarantee.
Their joint venture, Unistar, "has not withdrawn its application for a federal loan guarantee and no decisions have been made regarding the future of Calvert Cliffs 3," Constellation Energy said.
It said the cost of the loan guarantee calculated by the Office of Management and Budget was "unreasonably burdensome and would create unacceptable risks and costs for our company."
"After repeated unsuccessful attempts to resolve this issue with DOE (Department of Energy) and OMB, we no longer see a timely path to reaching a workable set of terms and conditions," it said.
EdF bought 49.99 percent of Unistar's nuclear activities for 4.5 billion dollars in 2008.
But the partners appeared on the verge of a breakup over an option Constellation Energy has to sell EdF its thermal power plants despite their loss in value over the past two years.
© 2010 AFP